Investing in real estate in Germany

Why invest in a building in Germany?

On many levels, the indicators are green for starting an investment in a building in Germany. The country’s great economic stability and the fact that the real estate market in some of Germany’s major cities is lagging behind, have created good conditions for investors looking for good rates of return combined with investment security. The dynamism of the country has created a local population with a high standard of living and strong purchasing power, particularly in eastern cities such as Dresden, Berlin or Leipzig, which have been experiencing a revival since the early 2000s thanks to a price per m2 that is still affordable.

The country’s international reputation also attracts talent from all over Europe. This often skilled workforce is increasing the pressure on the rental market, leading to an attractive rate of return. Some may even become potential buyers. If they are not looking for an investment in an entire property in Germany, they are often looking for small areas for a first investment, further increasing the potential for added value for investors.

The financial conditions in Germany are really good to invest in a real estate project. Resale without capital gains tax is possible after only 10 years in Germany. Our team can guide you in the tax optimisation of your investment in a property in Germany.

What are the criteria to consider?

While all the traditional criteria such as the condition of the building, its contractual relationship with its occupants, the rate of return and maintenance costs are important, it is also necessary to look at the internal dynamics of the city to seize the emergence of new opportunities at the right time. A new shopping area, the gentrification of a neighbourhood, the creation of a technology incubator are all indicators that can make the difference between a good and a bad investment in a building in Germany. Our network of partners close to the field can help you with this.

The historical fact also has a great influence on the state of the German real estate market, as many cities were largely destroyed during the bombings of the Second World War. As a result, pre-war stone is increasingly scarce. A close look at the history of the building to identify potential sources of costs such as poor ventilation, construction defects, roof design, etc. is necessary.

The advantages of our agency for your search

• A real study of your project and your objectives
• A network of partners close to the field and its dynamics
• A complete support from the search for property to the rental of the property
• Advice on tax optimisation and long-term management of your real estate project in Germany