GERMANY

 

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Your Guide to Investing in Germany

 

Buying property in Germany can appear to be a complicated process.

 

To simplify it, IP Global has produced a guide to the logistics of investing in German property.

 

It covers all the necessary legal, tax and notarisation matters as well as the relevant acquisition and operating costs. Furthermore, you can expect guidance on the process of arranging mortgage finance as well as key information on lettings and management.

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Why invest in Germany Real Estate?

 

  • As a founding member of the European Union with the fourth largest economy in the world, Germany maintains its position as a safe haven for international capital in times of economic and political uncertainty worldwide.

  • With four top-10 European cities for real estate investment being in Germany, property investment opportunities along with investor confidence and demand remain high in 2020. Underpinned by the robust fundamentals of strong population growth and a structurally undersupplied housing market, Germany’s residential market was one of very few in the world to experience capital appreciation in the first half of 2020. It is forecast to outperform other major European residential markets until at least 2030.

  • During COVID-19, Germany experienced a brief, yet effective lockdown and the government stimulated the economy with an enormous fiscal program worth approximately 50% of the total European response. This has led to the country’s economy rebounding far quicker than the majority of advanced economies globally, offering countless secure property investment opportunities in times where there are few available.

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Economy

USD4 trillion (2019), 4th largest worldwide

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Population

83.2 million, 84+ million forecast by 2030

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Housing Deficit

1 million units (2020)

Key Benefits | Germany Real Estate

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Low mortgage rate

2.9%, 10-year fixed rate 

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Low costs of holding and exiting

- 100% deductible mortgage interest
- Zero capital gains tax (CGT) after a 10-year hold 
 
 
 

 

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Where to invest in Germany

 

Berlin operates as Germany’s centre for government, technology, education and culture. Boasting a well-developed infrastructure, faster growing office workforce than London or Paris, and strong economic growth, the city presents a striking investment case. 

 

Berlin

 

Berlin, the once-divided capital, is now a leading world city for politics, science, media, technology, education and culture. While already the most populous city in the EU, it is expected to rise above and beyond the 4 million mark in the next decade. All of this contributes to Berlin’s robust rental market and puts those that invest in Berlin property in a strong position.   

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Leipzig

 

Leipzig is home to Germany’s second oldest university as well as 6 universities of applied sciences and 12 other higher education institutions. A close relationship between the research, technology and energy spheres provides Leipzig a competitive advantage both in Germany and beyond. 

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Germany Track Record 

 

We get it. You need to be careful where you put your money, now more than ever. Times like these re-establish why our chosen asset class is property. It has tangible value combined with a stable demand for as long as people need shelter.

But not all real estate investments offer security. If you come across an offer that sounds too good to be true, it probably is. With a brief track record, it’s easy for firms to claim perfection.

IP Global has 15 years of expertise investing over $3 billion across 28 markets for our clients. We have on average achieved 105% of our rental estimates upon completion and have helped arrange over 5000 mortgages globally since 2005.

Since 2008, IP Global has successfully invested over €125 million in German real estate and continues to look for opportunities in this robust and secure market.

 

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