GERMANY

WHY INVEST IN REAL ESTATE IN GERMANY

As a founding member of the European Union and prominent participant of the G7, Germany is one of the world’s great superpowers primed with secure property investment opportunities. With the largest economy in Europe, it maintains its position as a safe haven for international capital in times of economic and political uncertainty worldwide.

Demand for property investment opportunities remains elevated as Germany was one of the few markets to experience a continuation of house price growth during the global pandemic. The residential market is forecast to outperform other major European residential markets until at least 2030, underpinned by strong population growth, a structurally undersupplied housing market and a robust economic landscape.

As a result of the effective management of COVID-19, the modern economic structure, and the enormous fiscal spending program, the German economy has proved to be very resilient. It has rebounded far faster than the majority of advanced economies in H2 2020, offering excellent property investment opportunities in times where there are few available.

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ECONOMY

USD4 Trillion GDP (2019)
4th Largest Worldwide

POPULATION

83.2 Million (2020)
84+ Million Forecast by 2030

HOUSING DEFICIT

1 Million Units (2020)

KEY BENEFITS | GERMANY PROPERTY INVESTMENT

Low Mortgage Rate

Tax Efficiency

KEY CITIES FOR PROPERTY INVESTMENT IN GERMANY

Berlin

Berlin, the once-divided capital is now a world city for politics, science, media, technology, education and culture. With the population expected to continue rising above and beyond the 4 million mark in the next decade, and sustained investment from domestic and international origins, the future looks very bright for Berlin.

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KEY CITIES FOR PROPERTY INVESTMENT IN GERMANY

Leipzig

Leipzig was Germany’s fourth-largest city at the end of the 19th century and although it suffered an economic and population decline after WWII, Leipzig’s economy has been experiencing a meteoric revival since the year 2000. With the population forecast to grow by another 25% reaching 750,000 residents by 2035, Leipzig’s residential real estate market provides an excellent property investment opportunity.

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FAQS

Is buying property in Germany a good investment?

The German housing market is an excellent opportunity for investors. Historically a robust economy in the face of global economic headwinds, the housing market remains a strong long term investment choice for international investors. The market value of German housing stock is forecast to reach EUR14.8 trillion by 2035, with house prices increasing by an average of 45% over the period. Consumer spending on housing rent is also expected to follow a similar trajectory, growing by an average of 44.5% between 2020 and 2035. Property in Germany therefore promises a strong return-on-investment especially with the tax advantages of no Capital Gains Tax after a 10-year hold and low 10-year fixed rate mortgages available for international investors.

Where is the best place to invest in property in Germany?

The top three cities to invest in Germany are Berlin, Leipzig and Munich. PwC named Berlin as the #2 city in Europe for real estate investment and development prospects in 2022. Berlin’s position as an international hub for business, innovation and politics attracts residents to the city, whilst regeneration and development projects only continue to provide more opportunities for investors.

Can I purchase property in Germany internationally?

If you are based outside the EU, you can still purchase property in Germany and secure a mortgage as an international citizen, in fact there are very attractive mortgage offers as the country welcomes foreign investment. We have put together a guide that covers many facts about property investment in Germany that are necessary to learn before choosing to invest abroad.

OUR TRACK RECORD IN GERMANY

As a truly international property investment company, our property brokers help investors add the strength of global real estate to their portfolio. In their 15 years of experience they have successfully entered 45 markets world-wide and invested over USD3 billion on behalf of their clients.

We ensure that our business operates with complete integrity and that the service delivery is entirely transparent. The track record of our property brokers speaks for itself, having successfully completed over 5,500 units and achieved 105% of their rental estimates since 2005.

Our partner property brokers have been active in Germany since 2008, having identified it as an extremely resilient real estate market with excellent capital and rental growth prospects. They have successfully invested over USD127 million across our 314 completed units since entering Germany and surpassed their rental estimates by an average of 112%.