Germany is a nation with a rich culture. It is also known as the land of the German machines, the land of the Beer fest and the Autobahn. Today, it is regarded as one of the world’s best economies and undoubtedly the best in Europe by a wide margin. It is considered the second largest global exporter next to China.
So what about the German property and real estate market? The property market in Germany is not yet very developed; however, it is pretty good and very promising for the following reasons.
Property investors across Europe have not fancied Germany property that much over the years. Because of this, the heated price wars as seen with other countries’ properties, such as France and the UK, cannot be found in Germany. Another great plus is that property for sale in Berlin and other major cities can give a yield of about 8% or even 10%. This is at a time when borrowing costs across Europe is around 6%. The German banks interest rate is not as high as their European counterparts.
Also, most major properties are owned by the German government and housing corporations and are presently experiencing pressures to sell. Their selling prices have not been out of reach, which equally proves that the prices of property for sale in Berlin and in Germany as a whole are very decent.
One of the best ways of finding the best German property is to find a reputable real estate broker. Most big cities in Germany have a Realtor Association, which can assist you in getting the contact details of a good number of credible real estate agents. These agents can give information on various properties and their locations. Also, they can easily furnish you with details of the ready-to-move-in properties.
You can also get the best German property listings from German financial institutions. The leading banks and lenders in Germany often have a listing of the different properties, which includes apartments, flats and houses. Also, these listings include property for sale in Berlin, Munich, Hamburg, etc.
As foreign investors in Germany, there are some things you must consider, which are as follows.
- Language Barrier – Germany is a non-English speaking country, so you must ensure that you deal with reputable agents that can help translate the property documents for you.
- Returns: Do not expect massive returns on your investments in a very short time. The German property market requires time and patience to make it work.
- Fluctuating Pricing: Since the property market is not yet matured, the price keeps fluctuating and is very erratic across different property locations.
An investment in German property over the long haul will be well worth it. A lot of people are relocating to Germany these days because of its strong economy. Property for sale in Berlin and other locations will continue to be cheap because most Germans do not have a property buying culture; instead, they prefer to rent. The upsurge in migration simply means that the demand for properties will increase, thereby creating good potentials for property investments in Germany.