Real estate prices in Germany depend on several factors:
 
First, this is, of course, the geographic location. On the territory of the former East German property, both private and commercial, is significantly cheaper, since it has been built in communist times and does not always meet modern standards. The East Germany infrastructure is incomparable with the western states of Germany. The cost of housing is also affected by a high percentage of unemployment in the eastern part of Germany. In the West Germany, the most expensive cities are Munich, Frankfurt, Cologne, Stuttgart, Hamburg and their suburbs. Buying real estate in these cities, you can be confident in the profitable investment of your money. The yield in the rental business in Germany is estimated on a progressive scale, ranging from 4.5 to 9% per annum.
    
The second factor considered when evaluating the property is the amount of future expenses on its maintenance: sound planning and modern equipment allow saving money on utilities: water, heating, and electricity. In new buildings, as a rule, the yield from the rental of commercial real estate is lower than in the secondary housing. However, this does not mean that an investment in such real estate is less favorable. Conversely, the liquidity of such property is much higher, since you do not have to invest in the building and a probability that there are any costs associated with the repair in the coming year is small.

When estimating the budget for the purchase of real estate, in addition to the property price specified in the contract, you need to take into account the related costs: 3.5 to 6.5% real estate transfer tax, depending on the federal state; approx. 2% + 19% VAT for the transaction legal registration by the notary, and about 3 to 5% + 19% VAT for ESTATE-SERVICE24 services.