Should you invest in Germany today?

Germany has been attracting a lot of attention from international investors of late (even though the market has been increasing for around 4 years now), particularly in Berlin. In fact, due to demand from our clients we are now offering mortgages in Germany.

We have mixed views on whether it’s a good idea to invest in Germany at the moment (this will ultimately depend on your circumstances and investment strategy).

On the positive side:

• Property prices in Berlin continue to rise strongly, and this should continue for the time being
• Long term Germany and Berlin should do well and provide a safe place to own property
• Population growth leading to higher demand

On the negative side:

• Buying costs are very high at around 13%, which means the market has to increase a lot before you’d ever get your money back should you need to sell
• The laws are very pro-tenant, which means you need a good property manager to ensure you don’t get into a nightmare situation
• Many properties on the market in Berlin are being sold at very overinflated prices to unwary foreign investors
• Mortgages could get more restrictive (beware those buying off-plan, always budget for at least a 50% deposit)

Contact us for a detailed consultation.