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What are the forecasts for the rise in property prices in Germany?

On average, the annual growth in real estate prices in Germany is about 4-6% per annum. But in recent years, the five largest cities (Berlin, Frankfurt am Main, Munich, Hamburg, and Stuttgart) have shown a higher growth in real estate prices.

Investors from all over the world want to invest in Germany for many reasons:

– Germany is one of the most stable (economically and politically) countries in the world with a high standard of living;

– According to the economists, real estate prices, both private and commercial (especially in large cities in the western lands of Germany) will continue to grow in the coming years. Also, rental rates are also growing – by about 2-3% per year;

– The guaranteed profitability of commercial real estate in Germany, comfortable living conditions, and the opportunity to obtain a residence permit in the future attract foreigners to the German real estate market.

Welche Art von Immobilien in Deutschland ist zurzeit besonders attraktiv für die Investitionen?

Eine starke Wirtschaft, politische Stabilität und ein hoher Lebensstandard – diese. Faktoren machen Deutschland für ausländische Investoren besonders attraktiv, die Immobilien in Deutschland als “sicheren Hafen” für Investitionen und Kapitalerhalt betrachten.

Wie wird sich der deutsche Immobilienmarkt im Kontext der Coronavirus-Epidemie entwickeln?

Viele fragen sich nun, was mit Immobilien in Deutschland während / nach der sogenannten „Pandemie“ des Coronavirus passieren wird: werden die Immobilienpreise sinken, wird es viele neue Objekte geben, in welche Immobilien lohnt es sich zu investieren?.

Viele Wirtschaftswissenschaftler sowie Immobilienmarktanalysten sind sich bereits einig, dass der Immobilienmarkt in Deutschland nicht darunter leiden wird, sondern im Gegenteil aus folgenden Gründen noch stärker nachgefragt wird:

– Deutschland hat seine Bereitschaft zu Turbulenzen im Zusammenhang mit kompetenter Führung und durchdachter Gesetzgebung des Landes gezeigt;

– Eine starke deutsche Wirtschaft wird sich im Vergleich zu den Volkswirtschaften anderer Länder recht schnell erholen.

– In der zweifelhaften Zukunft des Euro und des Dollars (ganz zu schweigen vom Rubel) waren, sind und werden Investitionen in liquide Immobilien – eine verlässliche Garantie für die Erhaltung des Kapitals;

Die Überflutung des Marktes mit neuen Immobilien zu Schnäppchenpreisen ist nicht zu erwarten. Der Mangel an Immobilien in den letzten Jahren ist insbesondere darauf zurückzuführen, dass neben einer großen Anzahl ausländischer Käufer auch lokale Investoren sehr begeistert sind, hochwertige Immobilien in Deutschland zu niedrigen Kreditzinsen zu kaufen.

Was bedeutet liquide Immobilien in Deutschland unter Berücksichtigung der Folgen der Coronavirus-Epidemie und in welche Immobilien ist eine Investition am zuverlässigsten?

– Dies sind vor allem Immobilien in wirtschaftlich gesunden Regionen Deutschlands (TOP-7-Städte und deren Regionen im Umkreis von 20-30 km): Berlin, Frankfurt am Main, München, Hamburg, Stuttgart, Köln, Düsseldorf.

– Auf dem Wohnimmobilienmarkt (sowohl für den privaten Gebrauch als auch als rentable Immobilien) wird die Nachfrage das Angebot bis mindestens 2030 erheblich übersteigen, sodass durch Investitionen in dieses Segment keine Risiken entstehen (dies betrifft wiederum wirtschaftlich gesunde Regionen Deutschlands).

– Neben dem Wohnungsbau besteht das nächste dringende menschliche Bedürfnis nach Nahrungsmitteln. Daher waren, sind und werden große Supermarktketten ein zuverlässiges Investitionsinstrument sein, unabhängig von den äußeren und inneren Umständen des Landes.

– Neben dem Wohnungsbau besteht das nächste dringende menschliche Bedürfnis nach Nahrungsmitteln. Daher waren, sind und werden große Supermarktketten ein zuverlässiges Investitionsinstrument sein, unabhängig von den äußeren und inneren Umständen des Landes.

– Hotels können um 10 – 15% im Preis fallen, aber auch hier ist zu berücksichtigen, dass Hotelketten in deutschen Großstädten weniger vom Tourismus als vielmehr von Geschäftsreisenden oder großen Ausstellungen leben. In Ferienorten oder Regionen mit schlecht entwickelten Volkswirtschaften ist ein spürbarer Rückgang der Hotelpreise möglich.

Unser Portfolio umfasst immer aktuelle Gewerbe- (Geschäfte, Bürogebäude, Mehrfamilienhäuser usw.) und Wohnimmobilien (Wohnungen, Häuser, Villen). Auf individuellen Wunsch bieten wir Immobilien an, die Ihren Kriterien am besten entsprechen.

What are the advantages of buying private property in Germany?

According to economists, prices for real estate in Germany (especially in large cities) will only grow in the coming years. Therefore, if you plan to buy the private property, for example an apartment building, for the purpose of further letting, the return on such an investment can be obtained in a fairly short time. Well-thought-out legislation excludes the risks of investing in real estate. Referring to ESTATE-SERVICE24, you do not have to understand all the subtleties of German laws – our experts will select optimal private or investment real estate for you, which will ensure a guaranteed and stable income. The cost of housing in Germany is several times less than in other European countries. This is despite the fact that Germany is one of the most stable (economically and politically) countries in the world with a high standard of living. An important advantage of buying the private property in Germany is the fact that you will easily get a Schengen multivisa with a maximum stay of 90 days within six months. Germany is located in the heart of Europe and from here you can reach other European countries in just a few hours. More than half of Germany’s population does not live in their own apartments, but they rent housing, therefore, the demand for both residential and commercial real estate in large cities and suburbs is extremely high.

What expenses will I bear if purchase the property in Germany?

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

What expenses will I bear to maintain the private property?

First of all, it is utilities (Hausgeld): water supply and heating (9 Euro per 1 cubic meter per month), garbage collection (about 20 euros per month), electricity is always paid separately depending on the area and electricity consumption (about 50 euros per month for a two-bedroom apartment). Utilities (hot and cold water, heating, gas, etc.) are paid according to the rates set every year. At the end of the year, recalculation is made according to the meter readings: if a larger volume of utility services was used, you will have to pay the difference; if you used less services than that paid for – a part of the amount will be refunded. If you rent an apartment, then utilities are paid by a tenant. The annual tax on the ownership of real estate in Germany is about 0.1% to 0.4% and is calculated depending on several factors: the year of construction, the condition of the property, and other factors.

Why are property prices in Frankfurt significantly higher than in other cities in Germany?

The economic attractiveness of the city is the main factor of stability of the local real estate market, the prices for which will grow. According to one of the world’s leading real estate agencies, since 201, prices in Frankfurt am Main have grown by 21%!
Real estate in Frankfurt am Main is a great way to save and increase your capital, because Frankfurt am Main is:

– The business and financial centre of Europe (more than 420 German and international financial companies and banks), which offers ideal conditions and opportunities for doing business;

– The largest exhibition centre (the third largest in the world) that hosts such world-famous exhibitions as the Frankfurt Book Fair, the International Automobile Exhibition, etc.

– Frankfurt am Main’s airport is the largest in Germany and the third largest airport in Europe (after the London’s Heathrow and Paris’ Charles de Gaulle);

– The city of skyscrapers: the Banking District (in German – Bankenviertel) has more skyscrapers than in the rest of Germany and the Europe’s tallest skyscraper – Europaturm; In the next five years, the world’s leading development companies are planning to build another 20 skyscrapers primarily for commercial purposes;

– Frankfurt am Main is near to such famous tourist cities and resorts as Baden-Baden, Heidelberg, Wiesbaden, the famous Rhine Valley with stunning scenery and numerous medieval castles (listed as the UNESCO World Heritage) and many others;

– Frankfurt am Main offers everything that is necessary for a comfortable living and a variety of leisure activities: the famous embankment of museums (approximately 13), art galleries, cafes and restaurants of German and European cuisine, beautiful parks, theatres and much more.

Why is it profitable to invest in new construction in Germany?

For our clients who want to buy residential real estate, both for the purpose of investment (rental) and for their own use, we recommend considering new buildings for the following reasons:

• there is a choice of apartments (you can choose the most suitable layout, floor, decoration – as a rule, 5 decoration lines are offered for selection).

• prices at the start of construction are 20% lower than when commissioning an object during construction for about 2 years (price increase at least 10% per year); therefore, when commissioning an object, the most expensive apartment options (penthouses) remain that are not so easily rented out for rent;

• a guarantee from the German developer for 5 years (I buy a second home; you most likely will encounter the need to repair it in the coming years, buying a new building – you will not have such a “headache” for at least 5 or 10 years;

• a guarantee from the German developer for 5 years (when buying apartment from secondary market you will most likely encounter the need to repair it in the coming years, buying a new building – you will not have such a “headache” for at least 5 or 10 years;

• phased payment (when buying a new building, you pay certain percentages of the total cost of the object according to the stages of development for 1 or 2-3 years – depending on how long the construction will last);

• the possibility of obtaining a financing from a German bank (in Germany, a non-resident of a country can also get a financing for purchase, it is easiest to get a loan from a German bank to a non-resident – to buy an apartment or apartment building. Here, the quality of the building, the location of the object will be taken into account. And new buildings in this case – ideal for a bank).

Our office is located in Frankfurt am Main. At your request, we will offer for you options of new buildings in Wiesbaden, Darmstadt, Mannheim and other cities within a radius of 100 km from Frankfurt am Main.

Does the purchase of real estate entitle to obtain a residence permit in Germany?

By itself, the purchase of real estate does not entitle you to a residence permit in Germany, but having your own apartment or house can be a significant plus in resolving this issue. Acquisition of private real estate in Germany gives you the right to obtain an entry visa for up to 90 days. If you purchase profitable or commercial real estate in Germany, which will bring profit, and open a GmbH (LLC), then this is already a guarantee of obtaining a residence permit in Germany. Getting a residence permit through the purchase of commercial real estate in Germany and the opening of the GmbH is one of the main activities of our company.

Benefits of Buying Commercial Real Estate in Germany

Investing in commercial property will provide you a stable guaranteed income of 4 to 9% per annum. According to experts, the German real estate market will develop rapidly, and large German cities, especially in the West Germany, are rated as the best for business. The main thing is that the socio-economic situation in Germany allows you to live and do business in a stable and comfortable environment!

The most favorable for investments are: commercial property, hotels in major cities and resort areas, restaurants, office buildings or apartment houses.

If you are interested in obtaining the residence permit in Germany and want to start your own business, ESTATE-SERVICE24 offers its services and will accompany you in all matters.

Cost and Profitability of Commercial Real Estate

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.

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