Why it’s a good time to buy a house in Germany
Germany has long been seen as a smart investment for developers or expats looking for either a second home abroad, or looking to move for work.
Despite the turmoil and uncertainty around the world and the impact this is having on some housing markets, Germany has remained a stable and smart choice as a place to buy a house.
Here’s the main reasons why it’s still a good idea to buy a house in Germany.
Stable housing market
Despite the turmoil of the last year and the uncertainty COVID-19 put on the housing market Germany hasn’t seen any falls in house prices, if anything prices continue to rise at a steady and stable pace.
This is typical of the German housing market which consistently outperforms global trends when it comes to prices.
It’s also because most German residents buy a home for life and don’t have the same relationship to homes as some other European countries like the UK, with buyers typically looking to upgrade or swap homes after a few years.
Long term market trends
This is a long term trend in the German housing, particularly for property in its seven big cities.
Between 2009 and 2019, property prices for existing homes in the likes of Munich, Cologne, Hamburg and Berlin increased by 124% on average - Munich itself saw property prices rocket by 178% in those 10 years.
These increases dwarf the housing market rises in other Western European countries over the same period.
In London for example (which remains one of the priciest places in the world for existing property) prices rose by 66% in the same decade from 2009 according to Nationwide.
Missing new home targets
Adding to the strength of the German housing market is the fact that the government is expected to miss its target of 1.5m new homes by the end of this year, so there’ll be no massive new supply to meet the current demand, according to Deutsche Bank.
Strong economy
Germany is widely regarded as the financial and economic centre of the EU and compared to other European countries it has dealt with the current pandemic better than many.
It has also highlighted the robustness of the German economy in that despite all the turmoil around the global economy, Germany has remained stable and has maintained a rate of low unemployment across age groups.
Even during previous recessions Germany has dealt with crises better than most.
This makes it an attractive place for people looking to work abroad as well as invest in a strong property market.
Strong infrastructure
If you’re looking for an investment property to live in and move to Germany, then you can also rely on some of the best services and infrastructure in Europe and around the world.
Germany has a generous and accessible healthcare system and some of the best international schools in the world.
Investment in infrastructure is consistently high also and Germany boasts some of the best and most efficient transport networks in the EU.
Strong economic immigration
Because Germany boasts such a strong economy and is home to some of the biggest, most well known brands in the world, it is also a key country for immigration and career opportunity.
It is expected that the way Germany has dealt so efficiently with the COVID-19 pandemic that it will see a further influx of immigration and investment in new jobs, just like it did after the 2008 financial crash.
So anyone looking for property investment now would be wise to invest sooner before the market gets too crowded.
Plus, Germany offers a reliable return on investment on rental property as roughly 85% of its population rents rather than owning their own property. So if you’re looking for this kind of property investment you can expect a reliable return.
Ready to invest in German property?
If you’re thinking about investing in a property in Germany then get in touch with us today.
Our team of experts can work with you to find exactly what you’re looking for to get the most out of your investment.
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