Prime Location, Proven Stability, Perfect Timing
Germany is the strongest economy in the Euro Bloc, and one of the strongest in the world.
It is characterized by its import and export, and is the only country in the world which exports to China more than it imports from China.
Its population is 80m, made up of 16 regions and a number of metropolitan cities.
The residential real estate market is characterized by the fact that half of the population are renting their properties, a trend that has held true for decades due to the predominant national mentality that prefers renting to purchase. In fact until 2008 the figure for rentals was as high as 55%.
The renters market continues to be stable for a few reasons:
- High income
- Cheap rent
- Low living expenses
- Great social benefits
The tenants see their apartment as their own home, and more often than not they stay for many years while investing sizable sums of their own cash into the apartment.
Real Estate rose substantially in countries such as: Ireland, Britain, Denmark, Spain, Switzerland, Austria, Turkey, America, Canada, Australia, Japan, Russia, and China. Rise of 150% and more were not uncommon.
During these ten years Germany remained stable with no movement in the Real Estate sector. If the world Real Estate market peaked 150%-200% while the average world Real Estate market rose to 140 %, Germany did not change. The only reason for that is the predominant mentality and the renters market as a culture.
The world crash was the catalyst for Germany's rise in its Real Estate market. People were scared and had no options for keeping their money safe, so they invested in gold which doubled itself and in golden bricks - German Real Estate which after a very long time of staying at its lowest point started to rise.
Both private investors and institutional investors from all over the world started to pour capital into German Real Estate, due to its low entry point, strong and stable economy and great social benefits. It was only the culture and mentality of renting that kept Real Estate prices so low. Finally, Real Estate prices started to rise, a trend of a buyers' market started to build and after decades of status quo from 45% home ownership Germany has risen to 50% home ownership up till today. This shows a steady and stable climb causing prices to rise.
To summarize ; The renters market is gradually changing to a buyer's market, the low entry point with a strong and stable economy for investors provides the opportunity.
Win Win situation:
If the European economy rises then so will Germany, as it is the leading economy in Europe.
If there is a crisis either in Europe or worldwide then the German Real Estate market will still rise as before. German Real Estate is a safe haven, it is literally the bricks of gold.
An Investment in knowledge always pays the best interest. (Benjamin Franklin)
We invite you to meet us and invest in knowledge: of Investments, Germany, and Real Estate.