AllGrund^®™ Real Estate and Rentals Germany

Coming soon: The Home Owners Manual

Finally investors will be able to get the complete know-how on how to make the most success of their investment properties in Germany...written for those who first bought and then realized they do not know the language and even if they do, know little or nothing about the German ways to manage a rented property. Only 29.50 € - and more success with your property investment in many years to come... based on years of experience with foreign investors, tenants, rentals, house management, tax office, annual bills, banks and financing, german agents and a lot more. Only available as e-book.

Order your copy of the Home Owners Manual today and get
a 30% pre-sales discount!

Vital links:

Sales offers Frankfurt, Berlin, Leipzig and International

Apartments for rent in Frankfurt area

General contact form in english

How to buy real Estate in Germany Guide

Property market Update Germany 2008

Property Investments in Germany 2007-2008 - an update (August 2007)

The German Property Market in 2006

Price increases of building land in Germany 2006

Financial Times International quoting AllGrund regarding Eastern Germany Property Investments

Essay on Frankfurt Real Estate Market from "Bellevue" Magazin english
(PDF 100KB )(With kind permission of "Bellevue" Real Estate Magazine)

Choosing the right location - macro and micro

Request form: Want to buy an apartment or house?

Articles on Renting in Germany:

How to rent in Germany

On lease agreements in Germany

Request form: Want to rent an apartment or house?

Background to the German Property Market

Since re-unification, the east has in effect been subsidised by the richer west of the country. Back in the first half of the 1990s, initiatives in the form of tax incentives offered by the government were aimed at stimulating economic growth in the region and west Germans invested heavily in property in the east creating a "bubble" in the market there. However, without the massive investment required in roads, factories, environmental clean-ups etc, combined with the governments' commitments on pensions, wider European labour market reforms and entry into the Euro, the economy in the east stagnated and the property bubble burst leaving many wealthy investors out of pocket and reluctant to risk further investment in property anywhere in Germany. The cost of re-unification has been estimated at over $1 trillion (levied by taxation) to the German economy as a whole, with the result that today, property in Germany trades at historically low levels.

The German Property Market 2008

Foreign investment in the German property market has been steadily increasing over the past years. Deals ranging between 100.000 euro and 100 million have been completed by privat and institutional investors who believe the German property market to be trading at a significant discount to other comparable western European economies. Despite transaction charges which can amount to anything between 10 -12 % of the purchase price (this includes stamp duty, agency fees, notary and land registration costs), German property represents great value for money. The investment vehicle used for purchase can also have a significant impact upon taxable income and future disposal of your investment vis a vis CGT (capital gains tax); specialist advice on the German tax code should always be sought when considering these factors.

While real estate prices across Germany are low, in comparison with other EU states, it is important to note certain regions within Germany offer better capital growth, and more stable rental income returns than others. The German property market in 2008 represents a great opportunity for investors seeking relatively high income rental returns coupled with solid capital appreciation. With interest rates in the euro zone likely to remain low for the foreseeable future and the German economy at last beginning to emerge from a long period of painful re-adjustment; property investors can be confident of strong returns on their investment in the years to come. Particularly in the south west of Germany, in cities such as Frankfurt, Stuttgart and Munich where the main drivers of the German economy are located, the property market should be described as a very strong "buy". In Berlin, Dresden and Leipzig the opportunties are good to buy with good yield or with good value increase potential.

Did the recent financial crisis affect the
German property market?

Yes and no. Indeed the large foreign institutional investors have reduced their new investment volumes mainly due to lack of possible financing. Private investors inside Germany - people living in Germany - are buying property at a higher volume than in the recent years. Funds are apparently shifted from other forms of investment into Real Estate, because people see it as a safe and secure harbour for their savings. Financings are possible both for residents and non-residents at about 60-65% of the purchase price. (October 2008)

External Links

Germany revealed as top Property investment prospect in
European Real Estate market

AllGrund listed at "International Real Estate Consultants"

AllGrund listed in European Real Estate directory

Homepage for Expats "How to Germany"

'And that is money!' Read this brief article on a current subject

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