Real Estate in Europe - Why is Germany the best strategic location for income-producing real estate investments?

The European real estate market is exciting, offering a few alternatives: England, Poland, Greece, Bulgaria and Romania (these are Germany's five main competitors when it comes to investing). Germany was chosen by PWC, the largest accounting firm in Germany, as the best country to invest in real estate. Here is why:

1. A strong economy - The European Union has been in turmoil in recent years, and if there is a breakdown, Germany is expected to recover the fastest. England can experience difficulties due to Brexit, the Mediterranean countries (Greece, Spain, Italy) might collapse, so Germany is considered the safest country for investments.
2. A steady trend of appreciation - for eight years in a row, Germany has experienced an average increase of 11% per year in its major cities. Still, the gaps are striking. It was possible to find a real estate deal in Berlin that would cost between 500 and 800 euros per meter in the past. Today, the price per meter has risen to 3500-6000 euros. In small cities, properties can still be found at prices of 500 euros per meter., "We anticipate that the trend in Germany will spread to the small towns, and then we will see appreciating real estate all over the country."
3. Tenants' market - one should keep in mind that 72% of Germans do not own apartments. However, this has changed in recent years (a few years ago, 80% of Germans did not own properties). Prices are on the rise in Germany not because of the investors but because of the Germans themselves who have started actively buying apartments. In case this trend continues, real estate is expected to further appreciate in the next five years.
4. Bank financing - in Germany, it is very easy to get bank financing for foreign investors. The economic policy encourages foreign investment, so the German bank is willing to give significant loans without having a record of the investor. You can currently get up to 90% financing for quality assets from a bank in the country. Accordingly, we provide a contractual guarantee to our clients to obtain the required funding to purchase a property. In other European countries such as Poland or Greece, it is almost impossible to get bank financing. Therefore, you don’t have the necessary leverage to create a quality real estate deal.