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German Property Investment For Sale

 

"Europe’s powerhouse offers interesting tourism investment opportunities."

 

Germany is the fifth largest economy in the world and has a very high standard of living.  It also has the second highest population in Europe (the highest in the European Union) and is the world’s second largest exporter and the third largest importer of goods. However the impact of the global recession has had an effect on the German economy especially as two thirds of German exports are within the EU.

Famed historically for its culture, architecture and unspoilt countryside, forests, mountains and waterways, Germany also has an international reputation for technological achievement.

Much property investment has centred on the key major cities of Berlin, Frankfurt and Munich now modern, futuristic hubs which encompass centuries of history and culture with vibrant nightlife. 

For those who are considering a buy-to-let in Germany you should be aware that rental income tax is extremely high and the German law is pro- tenant with strict controls on high rents, rental increases and with unlimited contracts being the norm.

The tourism market does however offer an alternative investment opportunity.  Germany is a top 10 global destination and growth in inbound tourism is forecast to be well above the global and European average. With most visitors heading to the major cities or Bavaria and the majority staying in hotel rooms – tourism accommodation is an area of exciting growth.
 

Country Guide

Geography

Germany is situated in central Europe bordering the Baltic Sea and the North Sea, it is in between the Netherlands, Poland and the south of Denmark. Germany is the sixth largest country in Europe. In the southern area of Germany are the Alps, the highest mountain range in Europe. Germany has many small towns which still retain their traditional culture and architecture dating back hundreds of years. The Rhine River on the west side of Germany is the main waterway for shipping goods from northern ports, crucial for Germany's imports and exports.

Government

The Federal Republic of Germany was proclaimed on 23rd May, 1949. 

Language

German is the official language.

Standard of Living

Western Germany's standard of living is one of the highest in the world. This is in part due to wealth contributed to by the government by setting up schemes such as housing subsidies, tax concessions and bonus schemes. Infrastructure is of a high, Western standard throughout most of the country, although the effect of communist rule in Eastern Germany is still evident in some towns and cities.

 

 

Country Economy

Following a long period of limited growth and high unemployment at the turn of the century, reforms introduced by the Government have boosted the economy and have upgraded the country in the aftermath of communism. 

As the fifth largest economy in the world, Germany is the world’s second largest exporter and the third largest importer of goods and Europe's largest economy.  However the impact of the global recession has had an effect on the German economy especially as two thirds of German exports are within the EU. Germany continues to be major economic powerhouse within the EU and Euro-zone.

Key Industries:

With exports accounting for more than a third of German output, the economy clearly relies heavily on trade to support economic growth. Trade is mostly within Europe, with the exceptions of the US and China as trading partners.  Germay is a leading exporter of machinery, vehicles, chemicals, metals, foodstuffs, textiles and household equipment.

 

 

Hotspots

Berlin

The capital of Germany, Berlin has been a hugely evolving city with much variety to offer to tourists and investors alike. Consisting of 23 different districts, each with their own unique character, Berlin has been going through a major property rebuild process which includes the new cityscape around Potsdamer Platz and the eastern city centre. Mitte, the central district has the most to offer including some of the city's most historical sites such as the Brandenburg Gate. On one side of the borough there are old properties and grand buildings, whilst towards the northeast there are bars, restaurants and clubs to accommodate Berlin's nightlife enthusiasts.

Only 11% of the German population own their own property which makes Berlin a cheap place to invest in. However, the property market in this city is only seen as a long term investment opportunity because it is known that Germans themselves prefer to rent accommodation than to buy. 

Frankfurt

Frankfurt is a distinctive city due to the combination of old and new real estate in the midst of one another, varying from towering skyscrapers to tiny half built houses. Frankfurt has over half a million residents of which 28% are of foreign citizenship and there is also a large immigrant community present here which makes it a popular city to be in due to its multi-ethnicity. Frankfurt is seen as a financial powerhouse for Germany and the European continent as a whole causing a huge impact on the world's economic stage, making it one of the ten Alpha world cities.

Cologne (Köln)

It is clear to see the reason for Cologne's popularity due to it's outstanding architecture, several museums, theatres, concerts and fantastic dance clubs making it a major cultural city with a vibrant art scene. It is a strong media centre in Germany and Cologne University is the largest in the country.

The property market in Cologne has remained stable and the transport connection links to other cities are of a high quality making it a favourable place for property investment. The property market in Cologne is broad enough to accommodate those wishing to buy and to rent.

Stuttgart

Stuttgart is the sixth largest city in Germany and is situated in the southwest of the country. It has a very urban community giving the city an inviting atmosphere and is seen as one of the better investment opportunities which are likely to attract shrewd investors.

Stuttgart is an industrial city with famous automobile companies and state of the art science facilities, but this isn't all the city has to offer. Stuttgart is well-known for its state opera and extraordinary art displays put on at the state gallery and gallery of Stuttgart.


Hamburg

Hamburg is the second largest city in Germany. The city centre is set around two lakes, the Binnenalster and the Aussenalster. Hamburg is an international trade city and the commercial and cultural centre of North Germany. Hamburg benefits from EU enlargement and is home to a number of key industries including chemical, IT and logistics. Hamburg is in a favourable location that it makes it easy to access which is very popular with investors.

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