A Guide to Property Investment Germany
Aug - 17 | 
No comments. | 
German Property
Germany is legendary for its arts, culture and incredible landscapes. From the splendour of Bavaria to the cosmopolitan flavour of Berlin, Germany appeals to holidaymakers, expatriates, business persons, retirees and most especially investors.
Germany’s strong and growing tourism industry, its very stable economy and its unique property market combine to make this country a favourite for investors. We at Nubricks.com would cite the following 10 reasons as those continuing to boost investor confidence in property investment in Germany: -
1) Germany’s Stable Government Inspires Investor Confidence in Property Purchases
Germany’s 20th century history was of course very rocky, but the country’s republic has been in place for a very long time now. The stability of the elected government is sound. In the present day Germany enjoys very strong relations with the UK and all member states in the European Union. It is also on very strong ground with the United States. The country’s reunification and overall stability inspire investor confidence in a bright and prosperous future for this very old European nation.
2) Germany’s Standing in the European Union and other Organisations Lends to its Credibility, Inspiring Confidence in Real Estate Investors
Germany’s history might not be the most stellar in the whole of Europe, but the country has taken great steps to improve its role as an international team player. Germany is one of the founding members of the European Union, and is active in a host of other international organisations, including the United Nations, NATO and the World Trade Organisation. Property investors often find Germany’s prominence on the international scene very inspiring.
3) Germany’s Stable Economy Makes it Very Attractive for Property Investors
Germany commands the world’s third largest economy. With a very healthy GDP of EUR 2,300 billion and an annual growth rate of about 3%, the economy here is considered quite stable. Inflation in Germany and unemployment tend to run quite low as well. The country’s economy is fuelled by car manufacturing, banking, insurance, tourism and engineering. Investors who desire strong and stable markets find Germany is very much to their liking.
4) Promising Rental Market Makes Germany Very Attractive to Investors
Investors with a buy-to-let strategy tend to adore the German landscape. It is estimated that some 80% of Germans rent their homes and the market is expected to become even more demanding as more immigrants move to this country. New Sky News estimates rental yields in Berlin at a strong 5.5 to 6.1%. When tourism is factored in as well, buy-to-let investors find the German property market is very inspiring indeed.
5) Reasonable Buy-In Prices and Ease of Purchase Makes Germany Very Appealing to Investors
Depending on the property type and the area in question, Germany still has some incredibly reasonable buy-in prices. Two-bedroom apartments in Berlin for example fetch prices of about GBP 60,000. Freestanding detached homes in some areas run the gamut from about GBP 150,000 to GBP 600,000 and beyond. All in all, the buy-in prices in Germany are quite competitive with other investment hotspots. When coupled with Germany’s strong and ever-growing appeal and its strengthening tourism industry, the prices really inspire investor confidence.
6) Germany’s Tourism Industry is Strong and Growing, Making Property Investment Here Very Appealing
Germany’s beautiful geography, historic castles, legendary landmarks and its incredible metropolitan cities appeal to holidaymakers from all over the world. Holding a very impressive 6.8% of the world’s tourism demand, Germany has a very healthy holidaymaking industry. According to the World Travel & Tourism Council, Germany’s 2007 tourism industry figures should come in around EUR 612 billion. The council anticipates a 3.4% per annum growth rate through to 2017. This is incredibly good news for investors interest in buy-to-let potential and even resale to holiday-home buyers. The booming tourism trade alone is enough to inspire serious confidence in this country’s potential.
7) Germany’s Geography and Climate Appeal to Many and Inspire Property Investor Confidence
Whilst Germany does not enjoy a balmy Mediterranean climate like many investment hotspots do, it does not disappoint holidaymakers or expats with its incredible scenery. The country’s 357,000 square kilometres are graced with North Sea and Baltic frontage in the north, Alpine ranges in the south. The legendary rivers Rhine, Main, Elbe and Danube cut swaths through the country and the Black Forest region is almost mythic in the mind of many holidaymakers. The climate in Germany tends to be very continental, but thanks to the hiking, skiing and exploring opportunities the country presents, few seem to care. The incredible draws of Germany’s natural landscape delight holidaymakers and inspire overall property investor confidence.
8) Germany’s Use of the Euro Makes it Very Easy for Investors from Most European Countries to Buy Real Estate in Germany
Germany’s use of the euro helps make investment much easier for many Europeans property investors. The common currency eliminates the need to fiddle with exchange rates. Whilst Brits will need to change their pounds for euros, they generally find there is little difficulty in doing so especially with the many currency specialists available who specialise in international real estate transactions nowadays. The fact that Germany’s currency is backed by nearly the whole of Europe helps inspire property investor confidence.
9) Ease of Access is Great News for Investors, Holidaymakers and Expats
Getting to Germany from just about any country in the world is incredibly easy. Most major international airports have flights directly to Germany’s largest cities. From Europe, holidaymakers, investors and expats will find a bevy of low-cost flights available. It is also possible to access Germany quite quickly using train transport. The ease of access into Germany for Europeans and even international holidaymakers makes the country very appealing to investors. Visas are not required for EU citizens, but passports should be carried at all times.
10) Germany’s Appeal to Expats and Retirees is Strong and its Cost of Living is Affordable
Germany’s unique culture, geography and overall atmosphere have combined to make it a very popular destination for retirees and expats from all over the world. According to the BBC, more than 120,000 Brits already call this country home, many of them pensioners. In addition to a strong British community, the country is also the second home for scores of Americans, other Europeans and people from just about every nation in the world. Whilst the cost of living in Germany is not the world’s cheapest, people here enjoy a very high standard of living at prices that compare favourably with the UK. The established and growing expat community and its reasonable living expenses help inspire investor confidence in the German property market.
From Bavaria’s picturesque landscapes to the bustle of Berlin, Germany appeals to holidaymakers, expats and investors from all over the world. With a strong and growing British community already in place, this European country is one that investors find very promising.