Germany Is it worth investing in real estate?
An indisputable advantage of Germany is a strong economy. This was the decisive factor in overcoming the crisis painlessly with the real estate market in this country. But how are things in this sector today?
The fact that the state with minimal losses emerged from the crisis does not yet confirm the constant stability of the real estate market. After the destruction of the Berlin Wall and the unification of the state, serious changes took place in the market, associated with the massive relocation of many citizens to other areas and the sale of housing at low prices. First of all, this was reflected in the real estate market in the eastern regions of Germany, where the fall in prices reached 30%.
2008 was marked by a rapid decline in housing prices in many European countries, which was impossible to say about Germany, where the reduction in prices reached a maximum of only 2%. According to experienced analysts, such stability is due to a lack of real estate. So, for example, in 2007 only 230 thousand objects were built, while 10 years earlier this figure was 3 times higher.
Where is the best place to buy property?
Not all regions of Germany are characterized by activity in the economic sphere and uniformity of settlement. So, the southern part of the state is famous for its developed economy and popularity among tourists.
Munich is one of the most reliable cities in Germany, in which you can safely invest money. It is a large city with a significant number of educational institutions and industrial facilities.
Most areas in East Germany are characterized by affordable housing prices. But objects in the secondary market with their condition are significantly inferior to real estate in the western part of the state. The vast majority of buyers prefer to buy property in Berlin, and this is a win-win option, because in the capital it is always advantageous to rent housing.
Real estate in the western part of the country is characterized by high quality. But at the same time, the cost is many times higher than the average in the real estate market.
Germany. Munich. Is it worth investing in real estate?
Comparison of property prices in Germany
The size of rental rates is determined by the variety and location of real estate. So, the monthly cost of apartments with an area of about 60 square meters. m in the capital is within 800 euros, and the same counterpart in Munich can be rented for 700 euros.
A separate item of traditional interest are commercial properties represented by shops, hotels and apartment buildings. To compare prices in this case, you can use several examples. So, the owner of a store of 50 square meters. m in a small town, you can become just 70 thousand euros. At the same time, the cost of a similar facility in Munich is within 200 thousand euros.
Many foreign buyers prefer tenement houses, because about 70% of the population use rental apartments as housing, which explains the level of demand. The leaders of leading real estate companies claim that this is a winning investment with a stable annual income of 10%.
But the interest of Russians in houses intended for large families is characterized by a certain specificity. According to studies, the primary preference of Russian citizens is cheap real estate, which in most cases is alienated by banking institutions. The cost of such facilities, as a rule, is 15–20% less, which is a rather attractive factor for buyers.
Today you can become the owner of a small high-quality apartment in Germany worth 20 thousand euros. And as practice shows, after such purchases, many Russians pay attention to apartment buildings, seriously thinking about acquiring.
Features of lending
Real estate can be purchased on credit, but it should be remembered that the lending conditions were significantly tightened after the crisis. In frequent cases, banking institutions are interested not only in collateral, but also in the availability of income in European countries. The rate is at 4% per annum.
The down payment is determined by the type of property purchased. So, if we are talking about the purchase of profitable objects, then the indicator may be at the level of 40%. For residential real estate and commercial properties, this figure will be at the level of 60% and 50%, respectively.
Germany. Leipzig Is it worth investing in real estate?
What are the prospects for the real estate market?
On the one hand, we can confidently talk about the reliability of investment in the real estate market in Germany. This state has steadily gone through all the crisis conditions, and is also famous for the insufficient number of residential facilities.
The main disadvantage is represented by the characteristics of the demographic situation in the country, which is characterized by a significant decrease in the population in recent years.