In General

It is possible today to buy real estate in Germany to a very favourable price, because not only the interest rate but also the real estate prices in Germany are very low at the moment. More and more foreigners have identified these advantages: in early times, foreigners had invested very much in South Europe but now they concentrate their investments on the German real estate market. The low-priced investment possibilities are offered by Berlin and by the new federal states (e.g. Leipzig or Dresden). In the former West Germany the real estate prices are considerably higher. This price difference is due to the fact that the demand for condominium ownership in the new federal states and in Berlin had been stagnating because of the bad work market situation and the high rate of unemployment. In addition, after the reunification the expectation of a considerable immigration to Berlin, the "new"capital city, led to massive construction projects. However, this never happened. Germans did not move to the new capital because new factories around Berlin have not been built. Berlin was and still is an island in the middle of the former DDR. However, the trend is changing, so that one may count with a very good letting situation in Berlin and in the new Bundesländer.

A small appartment in the centre of Berlin can eg. be bought for around 65.000 Euro. If one is willing to invest more than that you can for 130.000 Euro buy a totally modernized three room appartment in an atractive neighborhood.

The purchase of whole tenements is also of big interest. Considering the price per square meter, these tenements are cheaper than the single flats. The rates of returns for these tenements can be easily obtained between 5 and 8 percent. Taking into account the upward trend of Berlin, one may count with a considerable increase in value within the next 10 years. For example, in the last 12 months price increases of 30-40 % were registered. However, these real estates are still extremely cheap compared to the prices in other European capitals. If the tenement is divided and afterwards the single flats are sold, then the investor will potentially gain very big profits.

At the present, the low price and the low interest rate make foreign purchase of real estate in Germany especially profitable if they want to purely invest, to gain a holiday flat or to study and work there.

Since the reunification, Berlin has been the cultural capital city of Europe. More and more artists settle down in Berlin with their studios and workshops. Very few European cities offer the visitors such a wide variety of shopping, museum, theatre and concert possibilities like Berlin. But there are more superlatives: this way, Berlin is not only the greenest capital city of Europe with many forests and local recreation areas; at the same time, the city offers the most lakes, channels and waterways. Also, the lovely environment of the city is worth discovering: the many lakes, channels and rivers invite the visitor to all kinds of water sports like paddling or sailing.