The German property market is steady and stable. Returns have notoriously been unimpressive with average yields of 3%, however the desirability and liquidity of German property has made it a safe haven for international investors looking for a secure place to preserve their wealth. With great rates of borrowing, excellent building standards, and a reliable population, the major cities in Germany each have something different to offer.
Berlin has been marked as PwC’s European City for Investment 2020, and operates as Germany’s centre for government, technology and education. Highly skilled millennials are flocking to the city, drawn by the favourable employment outlook and diverse cultural melting pot. Berlin now has a faster growing workforce than both London and Paris. A booming economy, sustained population growth and an under-supplied housing market continue to present a striking investment case. Berlin’s prime luxury apartments are vastly more affordable than the equivalent in major cities such as New York, London and Paris.
Germany’s other cities – Frankfurt, Munich and Hamburg, are all primed for investment, based on healthy fundamentals. Germany’s financial engine, Frankfurt has an increasing population and significant GDP growth. Munich also benefits from a strong and diversified economy. It is a buoyant market with high occupancy rates and huge demand, not only from German and local Munich occupiers but also from international firms. Hamburg, too, is popular and consequently extremely competitive and pricey.
Contact us for a complimentary consultation