Real Estate Market in Germany - 2012

14.10.2012 09:30
Real Estate Market Analysis | Real Estate Market in Germany - 2012 Prosperous country, the first European economy, stable interest to a wide range of real estate during the crisis ... presents an overview of the real estate market in Germany. Story

For years, Germany retains the status of "an island of stability." Foreigners and locals to invest in real estate to generate income from the rental, others - buy to in which case have "alternate" in the country with a stable and probably the strongest economy in Europe.
Experts say that the economic crisis has not had a negative impact on the property market in Germany. Instead, he won, thanks to the global recession. The main reason for the increase in prices in 2012, is the fear of the Germans before the crisis of the euro. For many real estate is a more reliable means of preservation than other assets.

Related article: New suburbs: what, where, for how much?

According to the survey institute Forsa, every four Germans to invest in real estate, and one in three - buying real estate as security for themselves a decent pension. This is 50% more than in 2011.
In comparison with other European countries, real estate housing in Germany is still very affordable. Beginning in the 1990s, prices rose by only 0.7% per year. Thus, while the average cost of an apartment in Paris is € 8 thousand per sq ft in the heart of Vienna - about € 6 thousand in Hamburg and Berlin, the figure is € 2,1 million and € 1,8 thousand . per "square" respectively.
Thus, in the period from 2003 to 2011, property in Berlin has risen by 39% in Hamburg - 31%, in Munich - 23%, in Frankfurt - 14%, and in Cologne - by 10.5%.
The rise in prices for apartments in large cities are greater than for a house or apartment in the countryside. The reason - in greater transparency and market liquidity of urban real estate. Such objects are primarily interested in customers who are interested in investing, not buy real estate for their own accommodation.

Interest in the real estate market in Germany has grown significantly in the background of instability in other eurozone countries, particularly Spain and Greece. Today, investors are actively investing in residential and commercial areas in an effort to protect their savings from inflation. The greatest demand is observed in the major German cities such as Berlin and Hamburg, as many Germans move to these areas in search of work.

Only in 2011, major investors have spent on real estate in Germany, more than € 5 billion, of which about 1/3 of the buyers came from the non-resident.

Foreign investors purchase, usually profitable real estate leased. In recent years has increased the flow of customers from non-resident of the crisis of southern European regions (Italy, Spain, Greece, etc.) seeking to withdraw capital from their governments.

They are not citizens of the former Soviet Union lagged behind, whose interest in investing in overseas property does not abate, but, on the contrary, is increasing year by year. Russian investors prefer to invest in real estate in Berlin, Saxony, Bavaria, Baden-Württemberg and North Rhine-Westphalia.

The most expensive city in terms of buying real estate in Germany is Munich. Average housing price here is € 4,2 per thousand sq.m.
Aliens are trying to purchase apartments in houses built before the Second World War. The average cost of this "antique" the apartment is € 155 thousand, or € 1,8 per thousand sq.m.
Non-resident buyers make about half of the German real estate purchases. In the first quarter of 2012 they spent € 3,3 billion for housing here. This is the most significant investment since 2008.
Significant jump in prices recorded in a segment of real estate.
In Berlin, increased rates of compulsory acquisition, which must pay the buyer of real estate in the capital of Germany. On April 1, 2012 tax on the purchase of the object rose from 4.5% to 5% of the property value.
In Berlin, a growing number of tourists, and with it the investment attractiveness of the city.
According to experts, real estate in Germany remains undervalued.
The price range for real estate in Germany is huge: from € 200 to € 6 per thousand sq.m. depending on the city, the quality of the internal and external condition of the object, the year of construction and other factors.
The biggest demand is real estate in major cities, such as Berlin and Hamburg, many Germans come here in search of work.

Price portrait property market in Germany
For a description of the object as you can buy?
Apartments in Berlin, located in the homes of 50-60 g.g.postroyki € 1,3 thousand for "square"
Luxury real estate in Lake Starnberg about € 25 thousand per square meter
Detached house in the resort of Wiesbaden about € 750 thousand
Detached house in Leipzig, about € 150 thousand
Apartment, put into a perpetual lease on the secondary market of Berlin from € 750 to € 2 sq.m.
Available apartments without tenants in the secondary market of Berlin € 950 - € 3 per thousand sq.m.
The average house prices in the secondary market in the country about € 1,5 - € 2 thousand for the "square"
The average prices for new € 3 thousand - € 5 thousand per square meter
Studio apartment leased in Cologne from € 40 thousand
Free apartment in Cologne from € 60 thousand
House (villa) of about 300 sq.m. Dresden € 240 thousand

Restored apartment house 200 sq.m. in Naumburg (Saale) € 49 million (three out of four flats in the house rented out).


Analysts believe that by the end of 2012 houses and apartments in Germany will rise in price by at least 3% in annual terms. Such predictions are due to the reduction in the unemployment rate, rising incomes, low interest rates on loans and lack of supply in the market.

Experts do not predict the market overheating and the "bubble" similar to what is observed today in the U.S. and Spain. This will not result in even lower interest rates because German banks more closely relate to the selection of clients and accurately determine the maximum amount financed: a maximum of 70-80% of the value of the property. In addition, real estate in Germany is still heavily undervalued compared with other developed European countries.

Gradually rising prices are a proof of economic stability of the state. Therefore, foreigners seeking to protect themselves during the Euro crisis, invest money in the German real estate.
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Your comments:
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