Investing in condominiums in Germany

Why invest in an apartment in Germany?

Thanks to its strong growth and a solid economy, it is a good time to invest in an apartment in Germany under good conditions. The local population enjoys a standard of living that allows them to invest in their first properties with the aim of building up their real estate assets. The temptation is great, especially in East Germany where rents now tend to equal the cost of a purchase over the long term. Indeed, cities such as Leipzig, Berlin or Dresden are emerging from a period of stagnating prices, and now offer much better prospects for returns and capital gains than 10 years ago.

In a weakening Europe, Germany also continues to attract talent from all over Europe. These often young and highly educated profiles are often looking for rental accommodation on a smaller scale in the big cities, where there is no shortage of international positions. After a few years, these same profiles are also sometimes looking to invest in a first apartment in Germany in order to take advantage of the favourable conditions and build up a starting capital.

The financial conditions in Germany are really good to invest in a condominium. For example: There is an exemption on capital gains after only 10 years. We are pleased to advise you on the German real estate market.

What are the criteria to consider?

In addition to your personal goals regarding your real estate project, which can range from investing in rental properties to building up a property portfolio for your children, you should also consider the main criteria guiding your choice when buying an apartment in Germany. While habitability criteria such as location or space are important, it is necessary to look at the dynamics of the land to understand what will make the difference between a good and a bad rate of return for example. The attractiveness of the city from an economic, tourist and academic point of view are good indicators, but sometimes the emergence of “micro-neighbourhoods” as in Berlin can make the difference, within a few streets, between a good and a bad deal.

Many German cities were heavily bombed during the war, destroying many houses built before 1939. Old stone is therefore particularly popular. The post-war buildings of the 1960s and 1970s are ageing less well and require more frequent renovations. It is therefore necessary to take a close look at the history of the building on a case-by-case basis to identify design flaws, humidity problems, etc. The thickness of the walls is also an important criterion to avoid neighbourhood problems.

The advantages of our agency for your search

• An in-depth study of your project and your objectives
• Our extensive network of partners close to the field
• Our accompaniment from the first visits to the signing and beyond if necessary
• Our advice for the tax depreciation of your investment