REAL ESTATE IN GERMANY
German property market attracts foreign investors
German properties are extremely popular with international real estate investors, not only because of Germany’s strong economy and political stability but from the foreign investor’s point of view, the high demand, low vacancy rates and consistently low interest rates of the German real estate market are particularly attractive. German cities such as the financial metropolis Frankfurt am Main or Munich have stable, local microeconomic surroundings that guarantee long-term, predictable, secure returns for investors. In terms of international capital flows, real estate locations in Germany and the variety of uses of the properties makes the German real estate market one of the most appealing investment opportunities in the world today.
Vacancy rates at a low point
In the German main cities, including Frankfurt am Main, Berlin, Munich, Düsseldorf and Hamburg, the office vacancy rate is at its lowest level for around ten years. Even taking the corona pandemic into account, estimates predict no significant increase in vacancy rates in German conurbations. Due to the increasing demand for office space, the vacancy rate in the TOP 7 in Germany dropped to below 3 million m 2 in 2019, equivalent to a vacancy rate of 3.1%. Frankfurt am Main in particular, as one of the most important financial centers within the European Union, is now attracting
increasing attention in the financial and real estate world based on the Brexit.
Positive outlook for investors
Although housing market estimates foresee that the population in Germany will probably start to decline from 2021 onwards, the Federal Statistical Office predicts that the number of households will simultaneously increase to around 43.2 million by 2035, an increase of 5.9% compared to 2015, because despite a demographically induced decline in population, they expect fewer people per household. Thus, the strong demand on the housing market in Germany will remain unchanged in the future, providing positive prospects on the German real estate market.
REAL ESTATE IN ROMANIA
Significant investments in the Romanian real estate sector
Among the countries of Central and Eastern Europe, Romania has the most remarkable growth rate in terms of investment volume, which shows a growing interest of investors to invest in the Romanian real estate market. Despite certain political uncertainties, Romania offers exceptional potential, especially to foreign investors, through extremely lucrative investment opportunities. Against this background, it is likely that foreign direct investments in Romania will continue to grow steadily.
Growing housing market in Romania
Compared to other Central and Eastern European countries, Romania has a large market base given the size of the country. Due to the improving economic conditions and the rapid positive upswing through the increase in industrial production and private consumption, the Romanian real estate sector is benefiting from rapid growth, lively demand and low interest rates. In view of growing residential construction activity and strongly rising real estate prices in Romania, foreign investors currently have the opportunity to obtain valuable returns from their investments here.
Real estate as an essential investment area
Considering German shareholders alone, over 8000 companies have settled in Romania in recent years. The combination of a well-educated workforce, an attractive wage level and low taxes have had a positive impact on Romania’s real estate sector and created a large scope for foreign
investment. Thus, foreign investors can benefit from Romania’s investor-friendly policies and strategic location and make profits, while real estate prices in Europe will increase in the future. The advantages of real estate investments in Romania Since 2015, real estate prices in Romania have been rising continuously. Due to Romania’s stable currency, a favorable exchange rate works in favor of foreign investors. In addition, the Romanian central bank plans to introduce a 100% mortgage program for real estate buyers, which will increase the real estate prices by another 15% in the future. Since there are no restrictions for foreigners to purchase housing in Romania, all options are open to foreign investors looking for
houses, investment, office or commercial properties.