• WARNHOLZ Immobilien GmbH -

Why it pays to invest in German property

02.04.2014

Why it pays to invest in German property

Low interest rates and stable economic conditions mean that even today investing in German property remains an excellent decision. Since the financial and euro crisis, German residential properties have enjoyed an international reputation as safe assets, with flats rented out on a long-term basis guaranteeing a valuable source of income.

Low interest rates are fuelling the property boom. What’s more, the benchmark interest rate, which was cut to 0.25 percent by the European Central Bank in the autumn, is expected to remain low in the medium term. It therefore comes as no surprise that, despite increasing prices, investors in Germany bought more property last year than they have in a long time. According to experts, the spectre of a property bubble, which led to the downfall of the US market, does not pose a threat in Germany. In fact, here it is real demand as opposed to a price spiral that is pushing prices upwards, making Germany every investor’s dream