While most countries heavily promote either renting or buying a home, Germany strikes a compromise between the two. With just under half of the population owning a property in Germany, it is Europe's second-lowest rate after Switzerland.
This book will walk you through the entire process of buying a home in Germany, from finding a home to signing the contract, and will help you avoid some of the most typical problems of foreign homeownership.
Also read: Why should you buy a property in Germany?
House prices in Germany have risen significantly since the financial crisis, to the point where some analysts have warned of the risk of a bubble forming in major cities. For example, according to the property consultant Knight Frank, prices in Berlin surged by a fifth (20.5 percent) in 2017, making it the world's fastest-moving city market.
It needs to be seen whether these increases are long-term. According to data from the Bundesbank from 2018, houses in towns and cities could be overpriced by up to 20%.
This does not rule out the possibility of acquiring a property, as some areas remain reasonable.
The majority of inhabitants in Germany's major cities live in apartments. In suburban areas, houses are more numerous. You might be able to discover some houses in big cities, but they will almost certainly be quite expensive.
Germans have a habit of purchasing their homes for the rest of their lives. That is why it is critical to seek out properties in desirable locations with adequate infrastructure, such as public transportation, schools, shops, and employment prospects.
As a foreigner, you have the option of purchasing rather than renting a home in Germany. In fact, rather than renting, buying can be a good option. If you want to buy a house in Germany, you should familiarise yourself with the process and understand what to look for.