German Property – in for the long-haul

Many buying foreign propertys are looking to the German market to snap up a bargain. According to Halifax, Germany is the only western European country to have had negative property price growth in the last five years – and this downturn could lead to a property boom in the country.

House prices are low and Germany’s economy, once stagnant, is now starting to recover. There are no shortage of tenants and many large corporations are starting to buy up German commercial property. This has given confidence to the property market and some experts believe that this could start off a mini-property boom.

Berlin is the city that many have tipped for the best return on investment – with low property prices still pervading the city, bargains may be snapped up. There is no one ‘right’ type of property to buy – from apartments to houses, city living to country living, although city property may yield better rental incomes in the long-run. However, the luxury-end of the market is one of the strongest growing sectors, therefore luxury properties should definitely be one to keep an eye out for.

Outside of Berlin, Munich and Hamburg actually look to have stronger local economies and should the country’s property market pick-up, it is likely that these two cities will match, if not exceed, the growth of Berlin’s property.

However, one point to note is that any investors in the German property market should not be expecting good short-term gains. The German property market is best viewed as a long-term prospect with investors in for the long-haul – it is expected that the property market may take anything up to 10-15 years before German property reaches it’s full financial potential.

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