The best cities of Germany for purchase of the profitable real estate
Real estate investments of Germany first of all guarantee security and stability. Profitability of the majority of objects is based on growth of market value, but here monthly indicators yield, to put it mildly, modest results. It is impossible to tell that it is an occasion to be upset, but this fact will precisely frighten off persons interested to get profit here and now, and here as medium-term and long-term investments, the profitable real estate in Germany - a worthy object of attention.
High yield is integrated to high risks - important to remember it, choosing financial instruments. But any consultant will tell that the percent of similar investments shall not exceed 20%, otherwise there is a high probability to pass into the category of speculators. But it not in what we would like to be engaged therefore we suggest to concentrate in a zone of stable, systematic growth. And as this article is devoted by one of the most conservative countries, degree of security of investments will appear at the highest level. Yes, profitability at first sight can seem minimum, but we will consider options with the best conditions.
The growing prices of the rented real estate cause a storm of indignation in local population. In 2018 in Berlin there took place the protest march in which 13,000 people participated. In this connection, Angela Merkel announced investment of 2 billion euros into construction of social housing. Demand strongly exceeds the offer and local builders should find new solutions, we will talk about them a bit later.
Real estate investments look much more profitable investment of capital, than bank deposits. Local banks offer profitability around 1%, rates meet minus value therefore even 2% of profitability of housing seem very perspective.
How to receive bigger percent from the profitable real estate in Germany?
In the modern market to make it it is rather difficult, but as we spoke above, builders find new methods. One of them - business apartments in Munich. Perhaps, the most liquid local market of the country. Last year the prices grew almost by 14% here.
In Munich offices of the international companies are located, here pay high salaries and in every possible way involve well educated employees who are ready to pay for the qualitative real estate. Add millions of tourists visiting the city with the personal and business purposes here. All of them need to live somewhere, but local laws do not allow to rent housing for short terms.
Builders thought up the decision and began to build "boarding houses". Apart-hotels already received the portion of popularity worldwide and the progressive cities with the growing rates introduce them in the infrastructure. The main part of the audience interested in this type of housing - the staff of the companies who arrived on working questions for few weeks or months, independent tourists, students of the correspondence programs, foreigners clients of the local medical centers. Placement cost for long term in hotel will cost a pretty penny, and here business apartments become this rescue.
What "boarding houses" are - it is an apartment house with elements of hotel service. Small apartments are completely arranged with furniture, the equipment and all necessary attributes for life. Under the law this type of housing can be handed over by the day, but no more than 6 months to one person. In it the potential of high yield of apart-hotels also is.
On the one hand, it is much cheaper type of lease in comparison with average hotel that is good for the client, and on the other hand, it is more expensive option, than monthly cost of the usual apartment that is very interesting to the owner of the real estate.
Leasing the apartment in long-term lease, the owner is connected by terms of the contract and cannot increase cost if this point was not registered in advance. In a situation with apart-hotel everything is much simpler and the owner can manage pricing depending on a situation. For example, to increase lease cost during mass actions in the city. This type of investment allows to get profit 2-3 times higher, than at management of the usual real estate.
Medium-term investments into the profitable real estate of Germany.
At all the conservatism, the German market allows to get profit and on a difference of the prices of objects. Such method more risky also demands attentive analytics, it should be studied and already then to make the decision.
Among experts of the elite foreign real estate in the first quarter 2018 the fact that skilled and reserved investors from Japan directed close attention towards Germany was discussed. If earlier their interest was attracted by the USA, Australia, the developed countries of Southeast Asia, then now focus of attention was displaced. At the same time, the economy of Germany though is stable, but certainly lags behind such countries as Norway, Denmark or Switzerland. However, the fact remains and it it is worth taking into consideration.
The second point to which we would like to pay attention - high rates in the market of the large cities and megalopolises. At the moment the cost of square meter, for example, in Berlin reaches 12, 300 euros for a square that forces locals to look for alternatives on the outskirts of the city and to write complaints to administration.
The last years investors actively made investments in the sector of elite housing closer to business centers as result - high prices that became unconditional excellent news to those who bought this housing about 8 years ago. But what to do to those who is going to make investments right now? To buy objects at "peak" cost - not the best strategy, we recommend to go some other way.
As a rule, after the prices in the capitals reached the maximum, join nearby regions the game. And as now that moment, came it is time to look round. The great region for investments - Northern Rhine-Westphalia. The large industrial center of the country develops, here big productions, so and highly paid specialists also aspire. Considering the acceptable cost of square meter now and its future potential of growth, than not an occasion to find interesting objects in Cologne or Düsseldorf? In our catalog several relevant objects available to sale are provided. You can look at them on the website or at once call our expert 8 (495) 258-88-66.
Commercial real estate in Germany.
The most profitable and profitable type of investment, of course, are commercial objects. Among provided on our website, there will be classical hotels, restaurants, day spa, profitable campings, commercial centers, apartment houses and many other things.
Similar objects demand large investments. Separate options are estimated at tens of millions of euros, but pleasant exceptions meet. So, for example, near the city of Osnabrück (Lower Saxony), in the picturesque forest area the cozy hotel on 11 numbers is located. Now it is used as elite beauty shop. The historical building has own territory with the park for walks and has professional technical equipment for rest of tourists. In an arsenal of the building there is a big indoor pool, a sauna, a winter garden, a terrace, the spacious dining room and 11 double rooms with all conveniences. The cost of hotel is only 395,000 euros, all rooms in excellent condition. In the range of 1-3 million euros it is possible to purchase hotel in the Alps. Profitability of similar objects varies from 5 to 9%.
But a specific place among commercial objects is held by nursing homes. This type of objects widely extended in Europe for the last 10 years. The difficult demographic situation in the majority of the European countries where the demand of similar institutions unusually increased is well-known. And, if to assess a situation only in terms of investments is excellent the directions for investment of capital.
One more great option - shopping centers, shops and warehouse under lease. In our catalog the supermarket in Munich is provided. The shop area of 1500 sq.m, in 2013 in the building capital repairs were made. It is located in the center of financial life of Bavaria and annually shows profitability growth. In the region small, medium and large business perfectly develops. The population grows, so the demand in qualitative infrastructure in proportion increases.
If you are going to make investments in profitable objects of Germany, our company will help to make competent market research and to complete your investment portfolio with such profitable tool as the foreign real estate.
