In an effort to increase profitability, investors turn to value-added projects, like the construction and reconstruction of real estate abroad. On average, value-added projects bring investors 8–15% per annum, but they are considered to be the most risky forms of investment. In this article, you will find out how to protect yourself when investing in the construction market in perhaps the most stable economy in Europe - Germany.
Where do people that invest into properties in Germany come from? What are their budgets? What cities do they find most attractive? Tranio has the answers.
The volume of German property transactions reached €53bn in 2017, which was twice that of 2012. JLL experts expect the transaction volume to reach €60bn in 2018. So why are investors increasing their spending in the German property market?
How are things going on the global real estate market? What future challenges does it face? International real estate plaftorm Tranio presents an overview of the main trends that investors can focus on today and for the next year.
Experts from Deutsche Bank speak of a ‘supercycle’ in Berlin's real estate market. They expect Germany's capital to become the most expensive urban agglomeration of the country, despite the city currently ranking only fifteenth in residential property prices.
Germany does not have a citizenship-by-investment programme like Cyprus, for example. Naturalisation is the only way to become a German national by law.
Tranio has been working with overseas real estate for more than eight years. Over the past three years, the company has been focussed on development projects, primarily in Germany. Good investment projects are not easy to find in the central European country: there are not enough projects to meet investment demand, and local professional developers can afford to be picky with whom they choose to work.
Booming German property prices have led some experts to predict an impending price decline per square metre in the country. But Boris Eliasson, Head of Tranio in Germany, thinks otherwise; here, he explains why the prices will not stop growing in the near future.
The German property market is one of the most stable in the world. And today, it is a seller's market, as there are fewer properties available than investors wishing to buy them. Tranio explains some of the pertinent details an investor must consider before taking the plunge into the German rental market.
German commercial real estate market is considered to be a seller's market, with high-quality properties getting snapped up, and realtors mostly prefer to work with local clients. But large and riskier transactions are a different matter, requiring increased scrutiny from the buyer, i.e. ‘due diligence’.
International real estate broker Tranio has assisted a Russian investor in purchasing a land plot for the construction of a residential complex in Hamburg.
The volume of online transactions is growing by about 20% per year. If this trend continues, e-commerce will reach €4.4 trillion annually by 2020. How will this affect street retail properties?
Prices of micro-apartments range from €120,000 to €300,000. Taking into account all expenses and mortgage costs, an investor needs €70,000 to buy an apartment.
Major trends of the year are the growing demand for overseas property and transition from a simple rental business to more complex development and redevelopment projects.
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