Over the years, the German real estate market has proved to be a safe haven for international capital flows and foreign investments. While the country’s real estate sector has been stable for decades, it is gaining remarkable momentum post the global financial crisis of 2008. Today, Germany’s real estate is emerging as one of the most promising real estate markets in the European Union.
With the additional momentum in the industry due to market developments, the German real estate is seeing an evident rise in the number of transactions. In this blog, we review the current market situation and understand what brought about these positive changes in the country’s real estate industry.
The German Real Estate Industry: A New Perspective
One of the most obvious reasons for the increasing popularity of German real estate is the country’s overall economic and political condition. The country has enjoyed a stable secure economy and a highly professional political situation has indeed attracted a number of foreign investors wanting their own piece of land in the country. Add to this the low purchase prices and attractive interest rates for real estate, Germany has become a global hotspot for buying and reselling real estate.
Further, the country has a federal structure, which ensures that there is not one predominant major city that has a monopoly over the property market. While there is a slight decrease in the popularity of the rural regions, there is a definite boom in the metropolitan areas of the country.
Together with the strong economic base and the steady growth rates, Germany has attracted a number of foreign and expat real estate investors, giving surprising numbers that even surpassed the pre-economic crisis figures.
German Residency Program & Real Estate
The German Entrepreneurial residency program requires an individual to invest in real estate as part of the contributory investments. The process requires an interested party to purchase an off-plan real estate starting from EUR 250,000 while the second part of the investment is of EU 100,000 in one of the upcoming development projects in Germany.
The residency program also requires the main applicant to maintain a residential address during the entire period of investment. However, this will be different from the real estate they invest it. All the real estate investments made as a part of the residency program is for off-plan projects.
The German real estate market is decentralised, unlike that of other major European countries. In addition to this, the industry is strongly supplemented by a strong economy, urbanisation and international migration. Investing in the country’s real estate offers foreign investors the highest level of legal certainty an opportunity to optimize their taxes.
So, are you interested in German real estate? Consult with us today for the best property investment options and legal guidance.
