AllGrund^® Real Estate and Rentals Germany

Purchase or rent of real estate, houses, apartments in Germany: We are a full-service real estate agency in Germany's first ranks cities, Frankfurt and Munich, with more than five years of experience handling both individual and commercial transactions between native Germans and expatriates from America, Great Britain, Ireland, Australia, France, South Africa and many other countries. We know the business of real estate in our country and therefore we know what you NEED TO KNOW to accomplish a successful investment in real estate in Germany. And to smoothe your way, please be advised that we can speak your language. Our home office is located near Frankfurt International Airport and close to the European Central Bank.

Vital links:

Sales offers Frankfurt, Berlin, Leipzig and International

Apartments for rent in Frankfurt area

General contact form in english

Top articles

How to buy real Estate in Germany Guide

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?

...latest economic news (January 2008)...Unemployement rate in dropped in December 2007 to 8.1%, which is 1.5% down from last year. In West Germany it is at 6.7%, in East Germany 13.7%....Federal country of Hessen with Rhein Main area and Frankfurt included are at 6.7% compared to 8.4% in December 2006...Economy continues its positive trend which also reflects in the rental markets in areas with low unemployment...

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.

Recent economic indicators suggest the situation is about to change. Unemployment is falling and greater fiscal discipline on the part of the federal govt is enabling them to reduce borrowings. A prolonged slump in the performance of the German economy has been matched with a long period of depressed prices in German real estate. This, together with a reluctance on the part of German lenders, banks etc, to offer competitive mortgage deals, in spite of historically low interest rates, explains the general stagnation in the property market and has alerted foreign investors, pushed out of their domestic market due to high prices, to the opportunities in Germany and the low prices on offer.

The German Property Market

Foreign investment in the German property market has been steadily increasing over the past two years. Deals ranging between 100.000 euro and 100 million have been completed by 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 the former east as well as Berlin the opportunties are good to buy with good yield or with good value increase potential.

External Links

AllGrund listed at "International Real Estate Consultants"

AllGrund listed in European Real Estate directory

Homepage for Expats "How to Germany"

AllGrund does not have or take any responsibility for the content of external links. Please inform us if any of these links show any sign of critical content or are not available anymore.