Good Bye 2019, Hello to new opportunities...
It is this time of the year again where we think about the times gone by and what the new year has in store and hasn’t it been an interesting year on the german property and investment market?
Well over one million german properties have changed ownership in 2019 and monetary transactions on the property market have gone up to 6% to 269 billion Euro. In some areas, real estate transactions may have slowed down a little, in others, the market is still steaming ahead and prices are still on the rise. And whilst the actual overall value of the transactions have gone up, the amount of transactions has gone down by nearly 3% since 2015. This has led to a closer involvement of politics in the real estate market in particular when it comes to affordable housing and rental prices discussions. Not surprising, if one considers that the lion share of these transactions comes from the realisation of home real estate.
About 74% of these real estate transaction actually fall on house and apartment homes and purchasing prices have gone up especially in areas which are already see high prices. The national average for a square meter for a ‘used’ stand alone family home was on average in 2018 about 1,740 Euro. But like I said, prices range wildly, in Munich the average pricing per square meter is 10,200 Euro whilst a square meter in deepest Thuringia sets you back about 400 Euro per m2.
So are there still investment opportunities for 2020?
Buying apartments for investment purposes to either live in yourself or to rent out, is still a favourite option for investors. And whilst rental prices are not increasing at a rate as they used to in expensive cities, there is still an upwards trend to be seen. Hamburg and Munich have seen a slowdown in rental pricing, as well as Stuttgart, Berlin and Cologne, but we are far from a downward or negative trend - so yes, there is still time to invest and get your foot on the german property market.
And if you need help with finding the right financing option, we are here to help. Just check out our instant mortgage calculator to get an idea of how much you can borrow.