Real Estate

Property Market in Germany

Germany is the worlds third largest and Europe’s largest economy. It also holds the rank of being the world’s largest exporter, and has historically been the gateway between the West and the East. The German property market holds the distinction of being the most undervalued in the world. Over a 5-10 year period, Germany has the best potential for capital growth among all the developed nations. It currently possesses a robust rental exchange with higher returns on investment, has a modern, trustworthy legal and land registry organization, and its economic recovery is in full swing.

The properties within Berlin are about 30 percent lower in costs than what they would be in other cities within Germany. Small and big investors love to invest in Berlin because of the following reasons:

1. It is the centre of the expanded European Union

2. It is the capital of Europe’s largest economy.

3. There are a host of organizations and the national government are headquartered there.

4. There is a stable population of roughly 3.4 million people.

5. It is the base of operations of many multinational firms and corporations.

6. One of the most sought after cities in terms of modern technology and information technology development and operations.

7. It is the third largest tourist destination and it continues to grow. There have big investments that range up to 75 billion Euros within the past ten years.
It has unprecedented public transport infrastructure, including 3 international airports and the most modern railway system in Europe to date.

9. It is the cultural centre of Europe.

10. Berlin has a low cost of living and yet has a high quality of life. One example is the fact that 40 percent of the city’s area is devoted to parks and playgrounds.

The Property Market In Berlin has great potential for the future

There has been multi-billion Euro’s poured into the property market in Berlin by large corporations and investment firms. Now the small investors are following suit and see the major potential that is there.

The low property prices and the low cost of construction give the money extraordinary value. The rental rates in Berlin are one of the highest in the entire continent as about 86 percent of people there are renting their housing. This means there is a lot of potential for development investors. There have not been many new buildings over the past several years so new construction could not be timed any better.

The population of Berlin is also very stable and has been for the past three decades. It seems as though long term capital growth has a great expectancy to climb. Because of the multi-billion Euro investments, there are many new opportunities popping up all of the time.

Many wise investors are agreeing that now is the time to invest in Berlin as the German economy is re-emerging. Even foreign nationals can purchase and hold title to property in Berlin.

Purchasing Property in Berlin

The great thing about buying property in Berlin is that it is a no-nonsense process. Once there is a purchase that is agreed upon, a notary will draft with contract of sale. The notary will also act as a third party intermediary who will also check the title of the property and prepare the contract of sale, along with various other works. It is also the notary who has to make sure that the transacting parties are genuine. After all payments have been made, the change of ownership of property is completed

You can also look into mortgages for a property but just like everywhere else, financial institutions are being very particular about whom they lend their money to. This is to make sure that they do not end up with a lot of losses on loans that become problematic. There is also the taxation that is needed to be watched for with car. You might want to speak with a professional tax advisor first because German law can be known to be one of the most complex laws of the world.

Want to find out more about Berlin property #1, then visit the Berlin Property site on how to choose the best property in Berlin #2.

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