Foreign investors cash in on German property market

Germany has one of the lowest home ownership levels in Europe with statistics showing that nearly 50% of the population do not own their own property.

Limited financial packages have been one of the main hurdles in rectifying this situation with many Germans having to put down as much as 40% in order to achieve a mortgage and have proof of sustained savings over a number of years. This coupled with what has been a bad decade for the German economy has led to a new period of investment as many shrewd investors see that the German property market is now about to rise at an unprecedented rate as better financial packages are unveiled in order to kick start the property market. An influx of foreign investors has led many to believe that Germany could be the strongest emerging market to date.

IMOINVEST now bring to the market the opportunity to invest in studio, one, two and three bedroom properties in Uthmannstrasse in Berlin. These turn of the century apartments are ideally placed in a vibrant suburb of Neukollen which is host to many wide open spaces including the 90 hectare Britzer Gardens. With excellent services and shopping facilities nearby these properties are expected to achieve up to 10.92% and come to the market starting from just £16,386.

IMOINVEST International recognizes the incredible potential of this market and have recently opened a new office in central Berlin. Julien Lu Regional Director for IMOINVEST says, “With most of Europe’s property markets performing well, Germany is still on the bottom rung of the ladder. However, all of this is about to change. Recent years have shown that many private equity funds have invested billions into the German property market. This is a strong indication that the market is going to rise significantly over the next few years. These huge investments by private equity funds have also influenced individual investors who are jumping on the bandwagon at a tremendous rate due to the prospect of high rewards.”

With German banks now starting to introduce investor friendly mortgages and Germany starting to get to grips with its 1990 reunification which had long lasting effects on the economy, the ingredients are now in place to make Germany the most dominant property market in Europe. Their position is not dissimilar to the UK market in the 1990’s when investors started buying up low priced properties in order to refurbish and sell on or benefit from the rental market. The UK market as a result flourished for many years and property investors made tremendous profits by buying at the right time. The time is now right for Germany.

IMOINVEST are full service advisors offering knowledge of the financial and investment aspects that apply to each of their developments. IMOINVEST now have main offices in Paris, London, Berlin, Alicante, Sofia, Sunny Beach, Tallinn, Washington DC, Dublin, Orlando, Villinus and Montreal.

For further information, visit imoinvest.com.