New buildings in Germany: purchasing housing for investment purposes. Part 1

In terms of earning income from real estate abroad, Germany is one of the most attractive countries in the world. This applies to investments not only for subsequent resale years later, but also for rental purposes, the income from which continues to be high.

This state of affairs is facilitated by many factors that distinguish Germany from other countries where foreigners are also actively investing in residential real estate. New buildings seem more promising in this regard, the demand for which did not fall even at the height of the Covid-19 pandemic. This is partly explained by the fact that, in the changed reality, many potential investors began to look for housing away from city centers, where most of the construction took place. And although similar facilities can be found in other countries, in total Germany has more advantages, in almost all areas of life.


First of all, this is political stability over a long period of time, which guarantees the absence of any fundamental changes – including in that part of the legislation that concerns the rights of owners. Accordingly, the risks of buyers are reduced to almost zero. Real estate has not depreciated even during global financial and economic crises, and at the moment there are no prerequisites for this.

Despite the presence of 16 territorial entities (federal states), there are no acute political disagreements between them. For comparison, after Catalonia attempted to declare independence from Spain in October 2017, a number of leading companies and banks moved their headquarters to other regions, and real estate began to fall in price. It is simply impossible to imagine a similar situation in Germany.


It is also not possible to freeze construction for an indefinite period or put into operation objects with defects in internal or external finishing. After a certain period of time, major repairs are carried out, thanks to which the service life is significantly extended.

Recently, there has been a tendency to build objects from environmentally friendly materials and maintain environmental balance. The same statement is true in relation to the production of food and industrial goods, since the environment is one of the main priorities of the state – it is no coincidence that the number of nuclear power plants and hazardous industries is being consistently reduced in Germany.


This is not the end of the list of positive aspects of buying housing in new buildings in Germany, although you should be prepared for the fact that the price level for these properties is higher compared to other countries popular with foreign investors.

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