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Indeed, with the sales to French customers in 2015, ADEN Immo GmbH offers a proven expertise on real estate in the German capital. "Our typical customer: 42 years old, male, looking for a two-room-appartement, approx. €180,000, in the center of the city, for self-management or to rent." 

 

Some important points to remember:

  • a very favorable taxation through a bilateral tax treaty
  • an interesting German taxation, with a possible depreciation and 
  • no taxation on the capital gain on a sale after 10 years 
  • a growing market and worthwhile prospects capital gain
  • strong demand for rentals due to excessively low rate of vacancy 

More and more French people move to Berlin and “an increasing number turns to Berlin to invest in rented apartments”. At ADEN Immo, “the investors represent 60 to 70% of the French customers from now on”. Those see in Berlin low prices per square meter compared to those applied in other European cities, as well as the opportunity to make profit. “Real estate prices rose by 10% during the last year”. Moreover, although the rental yield remains low, it does not put investors off since the unpaid rents remain unusual and because finding a tenant is easy. Finally French people are also lured by the very attractive German tax law. David Nguyen maintains: “80% of ADEN Immo’s customers pay no tax at all”. Thus, this craze enables ADEN Immo to “close around fifty red, white and blue contracts every year”.  Will you be one of them?

While in France, “the hopes of an additional value at the resale” remain hypothetical “and the rental yield limited by the system of taxation makes buying less attractive, in Germany the market keeps attracting investors.
In fact, the prices are still 15% to 20% underestimated and are only slowly reaching the price levels of other European metropoles. The inflation of the real estate market has led the German government to introduce a rent regulation system. However, experts wonder about its efficiency in the future. “So, prices and rents should keep rising. Especially in Berlin, where the vacation rate is under 1,8 %”. Furthermore, the tenant is not secured in case of unpaid rents in Germany and the “German-French tax convention benefits especially the French investors.”  Therefore, an investment in Germany is very profitable. Please note that you can find financial means easily as in France, where you have to provide existing asset in France as guarantees, as in Germany, where a loan can be at 50% of the purchasing price.

While the “loi Alur” is controversial in France, in Berlin, the rental control of already existing leases was introduced in the 70’s. The federal government recently changed the law, which limits more owners for the new location. However Berlin continues to attract always more investors. Indeed, the estate price and the cost of living remain quite low compared to the other European cities. The unemployment rate has also fallen since 2005. Moreover “The taxation is a good reason to invest in Berlin since it rests on the value rental thanks to the writing-off of the good and a tax exemption for the profit after having the good for 10 years”. Berlin always captivates more and more people and is now the 4th European urban areas thanks to its positive migration.

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Real estate experts in Berlin and Paris

ADEN IMMOBILIEN is an international team of experts focused on real estate in the German and French capitals.

ADEN IMMOBILIEN is your reference for properties in Berlin and Paris: sales, rentals, new development projects and buildings.