Real estate in Germany continues to attract investors

Real estate in Germany continues to attract investors

Germany has long been known for its stability and security for investments. However, the investment appeal of Germany lies in the fact that the unemployment rate is low, construction increases and the rent gets more and more expensive, notes Knight Knox International.

A recent survey by CBRE, showed that Germany is the most attractive real estate market in Europe. In part because the growth is observed in all segments of the market. Thus, according to BulweinGesa, market rental housing in Germany is worth a total of more than € 1 trillion. Rental rates showed an increase of 15% over five years, and the price of apartments increased by 23%.

Thus the development and growth of the housing market is not so much due to foreign investment, but because of the economic growth in the country. Unemployment in Germany is at a minimum of 6.8% (for comparison, in the UK - 7.8%). Housing is being built 2.5% more than in the third quarter of last year. Such a good performance attract funds from foreign investors.

Only last year, Germany has attracted more than one fifth of the total European investments. In addition, 40% of transactions in 2012 were committed by foreign investors. The total investment for the first quarter of 2013, according to Savills, was more than € 6 billion, which is 21% more than last year.

An increase of 100,000 people in the population of the German capital was marked this year in comparison to 2007.

The cost of apartments in Berlin increased by 41%. The rapid rise in prices led investors to seek investment opportunities in other regions of the country. The province has a set of objects for sale, prices are lower and the demand for rent is the same as in the capital.