The German Property Market
Germany is Europe’s largest economy and the third largest in the world. It is also known as the largest exporter and the world and is known as the gateway between the East and the West. Also, property in Germany is known for being well undervalued which means that Germany has the best potential for some major growth over all developed nations. With a trustworthy legal and land registry organization, the economic recovery is in full swing.
Property prices in Berlin are mostly below the construction costs of property developments, and on average, are 30 percent lower than other German cities. Both big and small investors are very keen on Berlin for the following reasons:
1. The centre of the expanded European Union is Berlin.
2. Berlin is the capital of Europe’s largest economy.
3. There are a host of organizations and the national government are headquartered there.
4. There is a stable population of roughly 3.4 million people.
5. Many multinational corporations and firms use Berlin as their base for operations.
6. High in the ranks in modern technology operations and development.
7. Within the last ten years alone, Berlin, being the third largest tourist destination in Europe, has benefited from investments of up to 75 billion Euros.
8. Berlin has the most modern railway system in all of Europe and it has three international airports.
9. It is the cultural centre of Europe.
10. Berlin has a low cost of living and yet has a high quality of life. One example is the fact that 40 percent of the city’s area is devoted to parks and playgrounds.
The Property Market In Berlin has great potential for the future
Various large investment firms and corporations have poured in multi-billion Euro investments in Berlin’s property market. The small investors have followed suit acknowledging the tremendous potentials of the Berlin property market.
The low property prices and the low cost of construction give the money extraordinary value. The rental rates in Berlin are one of the highest in the entire continent as about 86 percent of people there are renting their housing. This means there is a lot of potential for development investors. There have not been many new buildings over the past several years so new construction could not be timed any better.
Berlin holds one of the most stable populations over the last 3 decades, and there has been increased interest among the residents to purchase their own homes, what with the exceptional affordability of its prices. Berlin has a very good medium to long term capital growth expectancy, and with its forecast multi-billion Euro capital investments, offers tremendous opportunities in its property market.
Even wise investors are in agreement that with the re-emerging German economy, now is the best time to invest in Berlin. Foreign nationals can also invest and hold title to Berlin properties.
Purchasing Property in Berlin
Buying property in Berlin is a direct and no-nonsense process. When a purchase is agreed upon a legal notary will draft the contract of sale. The notary acts as a third party intermediary in the transaction of sale of the property, and takes charge of the details of the sale, such as the checking of the title at the land registry, preparation of the contract of sale, and the enforcement of the impartial provisions of the said contract, and other pertinent works. It is also the notary’s responsibility to attest to the genuineness of the transacting parties. After payments have been fulfilled, the notary then proceeds to request the change of ownership of the property titles.
You can also look into mortgages for a property but just like everywhere else, financial institutions are being very particular about whom they lend their money to. This is to make sure that they do not end up with a lot of losses on loans that become problematic. There is also the taxation that is needed to be watched for with car. You might want to speak with a professional tax advisor first because German law can be known to be one of the most complex laws of the world.
Want to find out more about Berlin property #1, then visit the Berlin Property site on how to choose the best property in Berlin #2.