Why buy in Germany ?
- Germany has probably the most stable property market in the world. Since the onset of the ‘Credit Crunch’, more and more foreign investors are turning to the German property market, in order to take advantage of this stability
- Unbelievably attractive purchase prices
- Far higher rental returns than comparable property investments (e.g. in the UK)
- Low Euro interest rates
- Stable, long-term residential tenancies
- Germany has the largest economy in Europe and the third largest in the world
- The Land Registry and Legal systems are reliable and well respected
- Best capital growth potential out of all other developed economies
- Currently Europe’s most undervalued property market
The German property market is ‘bouncing back’ after many years of under-performance. Industrial and political reforms are having an immensely positive effect on Germany's business competitiveness and performance. As a result of this, the economy is performing more robustly than any of its European neighbours. Property rental yields are very attractive compared with it’s ‘peer’ countries (for example a buy-to-let property in Berlin currently yields 5-10% return, which is much higher than comparable European cities), making this the ideal time to invest in residential and commercial property in this mature and stable Euro-zone economy.
In no other sector is investment more evident than in the German property market, which has seen a vast influx of foreign buyers over the past few years. The stagnant economy of previous years - particularly in the new federal states - had suppressed house prices. Speculators now view the aftermath of this inactivity as a great opportunity. At present, property prices in most cities within the new German states are still up to 50% lower than those in the rest of the country, which means that excellent deals are to be found.
As the German government begins to ease restrictions within the mortgage market, domestic home ownership is set to increase. Higher property prices will accompany this rise in demand. At present, just 40% of households own their own property in Germany, with long-term tenancies being the norm.
A further motivating feature for potential investors is Germany's up to date transport infrastructure, and the country’s geographical proximity to many other European locations. In addition to this, the many low cost airlines flying to Germany’s numerous airports mean it is fast becoming a popular tourist destination. For holiday home investors and tourists alike, Germany offers some of Europe's most dramatic and beautiful mountains, countryside, lakes, coastal areas, and nature reserves. Its cities offer a wealth of historical and cultural places of interest, making it an ideal destination for outdoor activities, sightseeing or simply “getting away from it all”.
So Why Wait ??
From the above it is easy to see why many believe that Germany currently offers a growth potential unparalleled in any other developed European country. Germany has a very mature rental market, with a culture of long-term tenancies. The legal system is modern and secure. The economy is sound and - above all - property prices are rising, whilst in other countries prices are on the decline.