When you look into German real estate, you’ll find the property market quite to your liking. Desirable markets are growing and Germany is no exception.
The stability in real estate in Germany is attributable to the country’s conservative mortgage system. Many mortgages are issued at fixed rates, and buyers often put down 30% of the purchase price. This keeps prices from escalating.
If you are buying in Germany so you can rent out your property, the laws are friendly to keep prices down. Almost 50% of all residential properties in Germany are rentals. So it’s an excellent investment opportunity.
For an example of the cost of German real estate, take Bavaria as a unique state within the country. It’s the largest state in Germany and one of the richest. It’s the German people’s favorite place and one they most would like to move to.
The capital of Bavaria is Munich, and for many years, because of its popularity, has been the most expensive city in Germany. But although this is the case, it’s still a safe bet to invest here. Property taxes are about 1,070 euros per year and the maintenance fees range around 800 euros per month.
Traveling to the southern suburbs of Munich will find you in a region of very nice single-family homes. These range from 1.4 to 2.8 million euros but can go even higher for lake frontage.
But to compare Munich to the northern city of Bremen will reveal that a family home in Bremen would cost about €1,480 per square meter while the same home in Munich could cost about €5,080 per square meter. Commercial property in Munich can go for between €800 and €1,200 per square meter.
It all really depends on what purpose you have for your purchase. You have to do some research to ensure the German real estate you find is right for you.
Now, consider Berlin. This city has been determined to be another top location for real estate in Germany — with square meter prices ranging between €800 and €4,500, depending on the location. There are many fancy homes too, which can run up to €9,000 per square meter! House prices vary greatly in Berlin, as anywhere really. They sell for anywhere between €150,000 and 2 million euros.
Hamburg was another top place for property investment. In this lovely city you can find developed sites ready for construction from €76 to €179 per square meter. Rents vary from €8 to €12,50 per square meter. So you can see, whichever city is your target, you will need to do a little research.
Real estate in Germany might be best purchased through a real estate agent. They are self-regulated and work under strict codes. Of course, they have the ultimate purpose to sell you some property, so you must keep your goals in mind and not vary from exactly what you are looking for.
Naturally, the German real estate market changes, just like any real estate market in the world. It’s affected by interest rates and the credit crunch. Keep your finger on the pulse and you will find the property you want, and in the area you want.
No matter your desire, from a single-family home in the city or a small residence in the country, from a commercial property to a parcel of land to build on later, you’ll find it in Germany. You can even find a castle sitting on a mountain, or a tiny apartment overlooking a lake.
German real estate offers much to someone relocating, or for the investor looking for a deal. It’s a wonderful country to live and work in, and you’ll be pleased by your purchase. :-)