Best Country for Foreign Investors in Real Estate (FDI Intelligence, 2023)

Best Country for Doing Business in Europe ( World Bank, 2023)

GDP 3.87 trillion Euros, 4th in the world

Receive the latest insights and research on the German real estate market by downloading the investment case below.


Property investment in Germany can appear to be a complicated process. To simplify it, IP Global has produced a guide to the logistics of investing in German property.

It covers all the necessary legal and tax matters as well as all the information you need in relation to acquisition costs, holding costs and exit costs when you decide to sell.

Furthermore, you can expect guidance on the process of arranging mortgage finance as well as key information on lettings and management.

Germany Property Investment

As a founding member of the European Union and prominent participant of the G7, Germany is one of the world’s great superpowers primed with secure property investment opportunities. Throughout multiple crises, Germany’s economy has proven highly resilient to external shocks. Germany is the third largest exporter in the world with an economy expected to reach EUR 5.34 trillion by 2035. With the largest economy in Europe, it maintains its position as a safe haven for international capital in times of economic and political uncertainty worldwide.

Germany is the most populous nation in the EU and its population continues to expand due to increasing levels of inward migration. More than 4.5 million people migrated to Germany in the last ten years, bringing the working population to roughly 47 million people. Housing demand is a critical factor, making property a worthwhile investment as house prices throughout Berlin and other major cities experience a rise. Average prices for top-segment apartments in Berlin alone grew 12% in 2021. With average incomes forecast to rise on trend with Germany’s economic growth, opportunities in both Berlin and Leipzig offer promise for buy-to-let investors especially as these are markets where there is a strong rent culture.


More than 4.5 million people migrated to Germany in the last ten years, bringing the working population to roughly 47 million people.

Housing Market

The market value of the German housing stock is forecast to reach EUR14.8 trillion by 2035, with house prices increasing by an average of 45% over the period.


Germany is the third largest exporter in the world with an economy worth over EUR3.3 trillion as of 2020, expected to reach EUR5.34 trillion by 2035 (+60%).

Why Invest In Property In Germany

With a resilient economy and a persistent demand for housing, Germany presents promise to any investor’s international property portfolio. The long-term benefits make investing in Germany an attractive choice over other locations. In particular, Capital Gains Tax is not applied after a 10 year hold. Investors and new buyers can also benefit from the ability to secure pre-approved 10-year fixed rate mortgages under 4%, a relief during a time with volatile rates and financial uncertainty. In combination with the forecasts for house prices and rental prices, the potential profits for lets and resales make investment in Germany an exciting prospect over the long-run.

With more than 4.5 million newcomers migrating to Germany in the last decade alone, the construction sector has been incapable of keeping up with the demand for housing. Persistent supply and demand imbalances created a 1 million housing unit deficit in Germany as of 2020. Berlin is again ranked among the top cities in PwC’s Emerging Trends in Real Estate: Europe 2022 report as the second city for overall real estate prospects, with Frankfurt, Hamburg and Munich also included in the top 10. Germany’s real estate markets have continued to benefit from the country’s economic strength and effective navigation through the pandemic, with average prices increasing by over 14% y.o.y to April 2022.

As Germany’s economy grew substantially over the past 2 decades, the incomes earned by its residents increased in a similar fashion. The number of households with an annual income of USD35,000 or below is expected to have fallen by 78% by 2035, while the middle- and higher- income bands are expected to grow exponentially over the same period. Furthermore, the number of high-net-worth individuals in Germany has increased by 75% between 2016-21, significantly higher than the European average. Germany is expected to have over 5.3 million residents in this category by 2026, the 4th highest amount of any country after the US, China, and France. This demographic will prop up the housing market and continue to drive value to German real estate.

2021 was a record year for German residential real estate investment. An unprecedented amount of capital (EUR5.6 billion) was invested into new residential development projects. Already growing prior to the pandemic, the real estate investment market soared to new highs. Residential property is regarded by many investors as a better alternative to bonds, which resulted in stronger capital flows during more uncertain times.

The market value of the German housing stock is forecast to reach EUR14.5 trillion by 2035, with house prices increasing by an average of 40% over the period. Consumer spending on housing rent is also expected to follow a similar trajectory, growing by an average of 44% between 2021 and 2035. Overall, the investment fundamentals look to remain in place for the foreseeable future.

Our Track Record in Germany

At IP Global, we consistently outperform our projections year-on-year and this is particularly prominent with our German investments. Since 2014, IP Global has invested over EUR130 million across more than 20 developments in Germany. To date, we’ve achieved an average of 109% of our rental estimates in this European powerhouse and continue to look for opportunities for capital growth and strong returns.

The Top Six Overseas Property Investment Questions, Answered

Whatever the shape and substance of your overseas property investment portfolio, you do not want to be overexposed to uncertain market conditions. Property has long been considered a safe and stable investment option, particularly when compared to more volatile alternatives, such as stocks and shares.  Whether you are looking for long-term capital growth or income […]

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