What attracts Russians to real estate in Germany

On average, 1 square meter of housing in Munich currently costs 3.4 thousand euros, which is 2 times higher than in the rest of western Germany. About 2.6-3 thousand euros will have to pay for 1 square meter of housing in Frankfurt am Main. In third place are villas and houses in such resort cities as the famous Baden-Baden, chosen by the Russian aristocracy as a place for treatment and recreation back in the 19th century. The cost of a cottage or a luxury villa here can reach 350-500 thousand euros, but an apartment in an ordinary apartment building can be purchased for 1.5 thousand euros per square meter..

Berlin real estate occupies an average price category – 1 square meter of living space here costs an average of 1.9 thousand euros.

It should be borne in mind that private houses in Germany usually cost an order of magnitude higher than apartments, even located in the central districts of the city – most Germans who have achieved financial well-being prefer to settle in their own house, so the demand for this category is quite high, and offers, compared to much less apartments.

In East Germany, the cost of residential real estate is noticeably lower than in the western regions – on average, for 1 square meter of housing in large cities you will have to pay from 500 to 1 thousand euros, and in small settlements the price can be even lower.

However, experts predict that in 5-10 years the situation will level out (tendencies for such a development of events are already noticeable), so investments in real estate in East Germany can be very profitable, since the price increase will be more significant than in the western regions.

Deal registration procedure

Usually, it takes a buyer from 2 to 4 months to process the purchase of an apartment or house in Germany; if the purchase is made using a mortgage loan, the period can be increased.

At the first stage, most often the future owner of an apartment contacts a real estate agency (you can buy housing from private sellers, however, experts advise foreign citizens to use the services of professionals), chooses the property they like and goes to “get acquainted” with a possible purchase on the spot. Of course, you can buy housing remotely, without leaving Russia, for this you need to issue a notarized power of attorney and choose a representative in Germany. However, most buyers still prefer to personally inspect the apartment or house..

Coastal Oleg. Once upon a time in Germany. 1999

Next, the buyer needs to familiarize himself with the data of the Land Register (Grundbuch), which records all transactions with real estate – sales, purchases, mortgage encumbrances, and so on. This is the most reliable way to make sure that the buyer is dealing with the owner of the property or his official representative..

Payment for housing is made in the overwhelming majority of cases through the current account directly of the seller or a special trust account of the notary, from which the purchase and sale agreement is certified (which is a prerequisite for the official conclusion of the transaction).

Another nuance – the re-registration of ownership of an apartment or house is carried out in Germany in two stages: preliminary and final registration of the transaction. Initially, after signing the purchase and sale agreement, the notary sends a request to the Land Court for the preliminary registration of the transaction, and after the entire amount is transferred to the account of the seller or notary, the transaction is finally registered and a corresponding entry is made in the Land Register..

In addition to the cost of an apartment or house, the buyer will have to pay the following overhead costs:

• property purchase tax, the rate of which varies depending on the region of purchase. On average, the tax is 3.5% of the cost of housing, in Berlin, Bremen, Hamburg and Saxony, the rate is set at 4.5%, and in Brandenburg you will have to pay 5% of the cost of housing;
• notary costs depend on the value of real estate and are on average 1.5%, if the price of an apartment is low, notary services can be 2-3% of the cost, and in the case of purchasing expensive real estate, notary costs are usually fixed at 1% of the price of an apartment or house ;
• expenses for re-registration of ownership – from 0.5 to 1% of the value of the property;
• brokerage costs – from 3 to 6% of the price of a house or apartment. Sometimes these costs are immediately included in the price of the property..

Perspectives

I would like to note that according to the data of real estate agencies, before the crisis, elite real estate in Germany was in high demand – villas with parklands, modernized castles built in the 18-19th century, apartments in the central districts of Berlin and Munich.

Currently, most buyers are interested in inexpensive real estate, worth from 30 to 50 thousand euros, which is considered by Russians as the best way to preserve accumulated funds and increase savings in the future..

According to experts, the value of real estate in Germany will grow steadily, a sharp rise in prices should not be expected, as well as a significant decline in value. It is thanks to such stability of the economy, the proximity of the geographical position of Germany and the cost of real estate, which is quite comparable with Russian prices, that buying a home in this European country will not lose its attractiveness in the coming years..