Are you planning to sell your apartment in Germany? You may have noticed how, since the Brexit vote of June 23, 2016, there’s suddenly a huge demand for properties in Germany.
Many large multinationals that are based in London, are considering shifting their corporate headquarters to Berlin, Frankfurt or Munich in Germany.
Could Germany be the next financial hub of the world, replacing London at the top? And if that were to happen, would Germany emerge as one of the leading overseas property markets in the world? Certainly, that’s possible, and that’s probably the direction in which we are moving at.
Comparisons between Germany and Britain are common. The City of London is the financial superpower of Europe, and is home to some of the biggest banks and financial institutions in the world. The German financial industry, on the other hand, has a reputation for being on the conservative side.
But things are changing fast, and there is a strong belief among market observers that Germany will benefit more than any other country from Brexit. Berlin and Frankfurt, in particular, are expected to become the next financial giants of Europe. When this happens, the consequences for the real estate market in Germany are expected to be very significant.
For this, Berlin and Frankfurt will have to deal with the competition from Paris. Paris is another city that a lot of multinationals are looking at to serve as their base in Europe.
That would require a lot of convincing though, as France is in the middle of a heated Presidential election, where the far-right leader Marine Le Pen is the favourite to win, if opinion polls are to be believed.
Ms. Le Pen has said that she wants a “Frexit” or for France to exit the European Union. So it does seem that Germany, where the political environment is a lot more stable, is more likely than France to benefit from Brexit.
Properties in Berlin are in huge demand, more so than those in Frankfurt, Munich and Hamburg. Berlin has emerged as one of the most important cities in the world, in the same league as New York, Sydney, London and Paris.
Apartment prices in all major German cities – Berlin, Frankfurt, Munich and Hamburg – have been rising steadily over the last few years, although Europe is still to get out of the economic recession caused by the subprime mortgage crisis in the USA of 2008.
Germany has been isolated from all of it, and has in fact prospered over the last 7 or 8 years, and is in a stronger position today than it has ever been. That’s why a number of wealthy individuals from across the world are looking to move to Germany.
There’s this mad rush to buy property in Germany, and it’s only going to get more intense over the next few years. But Germany would need to shake off this reputation it has of being a conservative country, where nothing exciting ever happens. 2017 should be an interesting year for the German property market.