Buying a German Property has become a must for many investors. Vonovia declared that the German Real Estate market has reached more than 20 billion in volume in 2020. It also analyzed a consistent growth in these past years until today.
After the global pandemic, it has become difficult to predict how equity investments will go. Yet, if you are considering investing in German property you are not wrong: this is the best way to protect your savings and increase your capital.
In fact, buying a house in Germany is very profitable.
Unlike gold and precious metals (the value of which increases over a lot of time) a rented property generates an immediate income.
In fact, in Germany, every time a new building appears this gets sold in no-time even before digging the foundations.
With a very low employment rate only 43% of the population lives in their own house. In fact, Germans primarily buy houses to rent them, rather than for residential use.
There are numerous owners who live in rented houses despite having many properties. This is because, for German people, purchasing a house is seen as an asset and not as a liability. Making profit, indeed, is one of the major purposes of buying a German property.
In other words, this housing market is majorly speculative. It plants its root on the buy-sell formula and on the rental processes (being that a holiday rental or long term dwellings).
This country is very attractive for new generations of entrepreneurs, professional workers, students, artists and intellectuals. After the pandemic, house prices in Germany rose along with market demand:
Germany also offers attractive tax incentives for investors which want to buy residential properties. This is one of the reasons for the growth is the lower interest rates which have encouraged growth in property values.
If you are interested in German properties and would like to know more details check our dedicated page here.
André Pitì
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