Send to a friend

News

German Property Market Opens Up for Foreign Investment - 25 August 2011

As the economic situation in Europe looks direr against the backdrop of several potential sovereign defaults, investors are increasingly looking to real estate as a safe investment. Nonetheless, the property market has taken a blow in much of Europe, with few exceptions. In that sector, the German market has defied its peers. Unlike much of the world, Germany’s evasion of the subprime mortgage crisis has not only helped to keep its economy Europe’s strongest, but has also kept the Germany property market strong.

Germany’s strong real estate market owes its strength to several factors. First amongst them is Germany’s low rate of home ownership: only 43 percent of Germans on the whole own their own home, with an estimated 85-90 percent of Berliners renting their dwelling. The figure provides buyers with the opportunity to let their property with little struggle. Such has also helped keep the competition in Germany low, and the country a prime target for real estate investment. Notable foreign investments include the Forbes Investment Group’s 2004 purchase, in which the Group bought 80,000 properties for an astonishingly low £2.3 billion.

The effects of the country’s 1990 reunification continue to be felt in 2011, notably regarding German property investment. The country has seen a migration of people from the former East Germany (GDR) to the western portion, leaving a surplus of nearly one million homes, which provides potential buyers the chance to reap large returns on investment. Other investment areas include Munich, the country’s most expensive market, with an average price per square meter at £6,500. Frankfurt, one of Europe’s financial center, offers a greater variety of properties, albeit at more variable prices.

Unique luxury apartments in Berlin
For more details on this development in one of the most sought-after parts of the city, click here


 

Related Articles


Browse our articles written by leading industry experts:

Overseas Property Buying Guides

UK Property Guides

Gardens and Interiors

Cosmetic Surgery Fact Sheets

Looking Good Guides

Money

Business

Community

Travel