What Attracts Russians To Real Estate In Germany

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What Attracts Russians To Real Estate In Germany
What Attracts Russians To Real Estate In Germany

Video: What Attracts Russians To Real Estate In Germany

Video: What Attracts Russians To Real Estate In Germany
Video: Buying/Renting Real Estate in Russia as a Foreigner | Tim Kirby's Live Stream. 2024, March
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  • Features of the real estate market in Germany
  • Deal registration procedure
  • Perspectives
Buy an apartment in Germany
Buy an apartment in Germany

José García y Más. Berlin. 1982

What factors make the purchase of an apartment or house in Germany so desirable for the residents of Russia?

First, the German economy is considered the most stable among all European countries. After the 2008 crisis, the real estate market of this country was one of the first to recover, and even at the peak of the crisis, when some German banks were closed and there was a drop in demand (especially in the elite housing segment), the cost per square meter on average in Germany decreased by only 0.7-1 %, while in the UK, for example, the fall in prices was 15%.

Secondly, in recent years, the cost of apartments in the cities of Germany has been steadily growing: since 2009, when housing prices reached a minimum, the cost of apartments on average increased by 7.4%, including by 1 in the first half of this year. nine%.

Thirdly, the procedure for registering real estate is quite simple and practically does not differ for German citizens and foreign buyers. In addition, although the acquisition of real estate in the country does not give the right to simultaneously obtain a residence permit in Germany, in the future it becomes a big plus for the applicant for a residence permit and citizenship of the country.

According to Lyubov Baumgertner, representative of L&B Immobiliya, buying real estate in Germany attracts Russians due to the following factors:

  • economic stability;
  • law and order and low crime rates;
  • developed infrastructure;
  • impeccable quality of housing;
  • debugged transaction registration scheme, excluding the possibility of fraud and fraud.

Interestingly, many buyers of real estate in East Germany are Ukrainians, Russians and Belarusians, who at one time served in the territory of the former GDR, as well as their family members. They have retained great memories of living in Germany and willingly buy housing in familiar areas, often nearby former garrisons.

Another important factor that makes the purchase of an apartment or house in Germany attractive for Russian residents is the relatively low cost of housing. However, it should be borne in mind that the real estate market in Germany is very different depending on the region and it is necessary to take into account many factors to choose the city where the apartment will be bought.

Features of the real estate market in Germany

Despite the fact that more than 20 years have passed since the unification of the country, the real estate market in West and East Germany still has a number of differences.

The main feature of this division is that the cost of real estate in the eastern regions of the country is much lower than in the western and southern regions. The leader in terms of prices in Germany is the "city of millionaires" - Munich, and not the capital - Berlin. This situation may seem strange for buyers from Russia, who are used to the fact that the most expensive housing is located in the capital. But in pragmatic Germany, apartments are in special demand in those cities where there is a higher chance of finding a high-paying job, and in this respect Munich and Frankfurt am Main (the second most expensive housing in the country), which are the largest industrial, financial and administrative centers not only Germany, but also the European Union remain out of competition.

Features of the real estate market in Germany
Features of the real estate market in Germany

Wassily Kandinsky. Houses in Munich. 1908

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.

Real estate in Berlin occupies the middle 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 - the majority of 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 apartments are much smaller.

In East Germany, the cost of residential real estate is much 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 towns 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 investing 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 2 to 4 months to complete the purchase of an apartment or house in Germany; if the purchase is made using a mortgage loan, the period may 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), selects 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 draw up a notarized power of attorney and choose a representative in Germany. However, most buyers still prefer to personally inspect the apartment or house.

Buying an apartment in Germany
Buying an apartment in Germany

Coastal Oleg. Once upon a time in Germany. 1999

Further, 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 ensure 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 contract of sale, the notary sends a request to the Land Court for preliminary registration of the transaction, and after the entire amount is transferred to the account of the seller or notary, the final registration of the transaction is carried out 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:

  • real estate 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 not high, 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;
  • costs of 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 their accumulated funds and increase their 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 to Russian prices, that buying a home in this European country will not lose its attractiveness in the coming years.

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