Germany is characterized by its prime architecture and rich history that have long attracted non-Germans in the country.
Germany is a prime destination in Europe and living in Germany is affordable — despite the high standards. Costs vary across the country — in the more industrialized city centers like Berlin, Cologne, and Bonn, prices tend to be higher than in the more rural and less developed and former communist East Germany.
Over the last five years, house prices in Germany have risen at a steady rate due to several factors, such as strong economic growth, 1.1 million refugees, high work-related immigration, and low-interest rates.
In the capital, Berlin, house prices are US$478 per square foot (sq. ft.) with rental yields ranging from 2.99% to 3.54%. In Munich, Bavaria, properties cost US$912 per sq. ft. with yields that range from 2.86% to 3.48%. In Frankfurt, US$569 per sq. ft. with rental yields from 3.7% to 3.88%.
It is straightforward for a non-German to purchase property in Germany as there are no restrictions. It should be noted that owning a property in the country does not entitle a non-German to such permit as it must be applied separately. Or just claim asylum as millions of other have done.
Buying a property in Germany is a huge undertaking. Obtaining a financial assistance or loan is more difficult as buying real estate is considered as a long term investment. Commission rates for agents and transaction costs are also high amounting to 2% to 6%.