What type of real
estate is now
attractive for
investment in

What type of real estate is now particularly attractive for investment in Germany?

Какой тип недвижимости сейчас особенно привлекателен для инвестиций в Германии?
A strong economy, thoughtful legal system, political stability, and a high standard of living - these factors make Germany particularly attractive to foreign investors who see real estate in Germany as a "safe haven" in terms of investing and preserving capital.

Now in the real estate market Germany record low loan rates (from 0.8% to 1.8%), which can also be used by non-residents of the country.
If earlier the Germans, due to high mobility in Europe, mainly rented housing, now at these low interest rates they buy it themselves for renting out.
According to statistics in recent years, Germans spend more than 160 billion euros a year on the purchase of real estate - and this trend will continue.

Thus, foreign investors have to compete, one might say, in tough conditions in the struggle for a good object with local investors.

Therefore, at this stage, they say that in Germany - the market for the object, not the buyer.

It is impossible to unequivocally answer in what type of real estate in Germany it is now profitable to invest. A subjective factor or preferences also take place: someone wants to invest in hotels, someone wants to invest in chain stores, someone wants to invest in apartment buildings. But, it is important to note the main factor: what is attractive for investments is that it is liquid - it can be both purely commercial objects and apartments for rent.

For investors with a relatively small budget - we recommend apartments. Since all regions of Germany differ in prices, we can say about our region of Frankfurt am Main (Hesse) that a small budget for this region is a budget of up to 1 million euros.

The yield on private real estate is lower than on commercial real estate. The income of commercial real estate is on average from 5% to 8%, the income of an apartment from renting it out and renting it is about 3.8%. But here it is also important to take into account that private real estate grows faster in price than commercial real estate, on average by 7-10% per year, i.e. in three years your apartment will rise in price by 30%.
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