A long period of economic stagnation has helped to open up some new opportunities in the German property market.

Indeed, a pickup in the economy and increased emphasis in the country on rolling back state pensions and encouraging people to provide more for their old age has made owning bricks and mortar a more interesting proposition for Germans, who for the most have been renters.

What is more, a somewhat fitful performance of the stock market has led many people to given looking at property as an alternative to shares.

That said, however, one of the few tax benefits for homeowners (the Eigenheimzulage) is facing an uncertain future.

But then officials in Berlin argue that Germany does not have a housing shortage which means that there government financial support to promote the housing market is not necessary.

Germany's economic recovery from a protracted period of stagnation has also meant property prices have remained subdued (and have fallen in some places, in particular the economically hard-pressed east). This combined with low interest rates; means buying could work in your favour.

One key factor behind any decision to buy is the length of time you intend to stay in the country. Apart from the somewhat hefty costs involved in buying, property prices in Germany do not tend to race ahead like other real markets so you should not expect a big quick return on your investment.

Considering that Germany's recent less-than-sparkling economic performance has also meant that rents have barely moved in recent years (and in cities like Berlin are low in comparison with other European cities) you should also weigh up whether it is financially more sensible for you to rent or to make monthly mortgage payments.

You don’t have to be German or even be a resident to buy what the real estate business in Germany call an ‘Objekt’. All you need is valid passport and enough money.

At the outset you should realise that total fees, including say for the agents and preparing the contract, can add up to between 10 and 12 percent of the purchase price.

But as you head off out onto the market, don’t forget the three rules of investing in a property also apply in Germany: ‘Lage’, ‘Lage’, ‘Lage’ (location, location, location).

Who you need to consult

Because a home-owning culture has not really developed in Germany, buying a property in the country can go along at a relatively leisurely pace without the tensions that arise in other markets around the world through auctions or in bidding wars.

 1 2 3 Next >