Rothenburg ob der Tauber – the most beautiful city in Bavaria
The rapid development of the Bavarian real estate market, even despite the lack of large-scale construction, has certainly contributed to the current situation. Recently, there has been a shift in the priorities of foreign investors from luxury properties to secondary market properties or commercial real estate.
What is interesting about buying real estate in Bavaria
Analyzing the development of the real estate market in Bavaria, several important aspects can be highlighted. On the one hand, there is a constant rise in prices. On the other hand, there is huge demand for rentals, which provides the investor with a stable income. In contrast, one can cite the real estate market in the eastern states, where the situation is completely opposite. Apartment prices are low, but renting out a property, and thus making a profitable investment, is quite difficult.
Prices for real estate in Bavaria cannot be called low even with a stretch. This is especially true for luxury and commercial properties, but the return on such investments is significantly higher than in other regions. The vacancy period of a purchased apartment before tenants move in is minimized.
Despite the constantly rising prices, it is still quite possible to buy real estate in Bavaria inexpensively. The most obvious way is to attract borrowed funds, which German banks willingly offer to their foreign clients. With regard to real estate in Germany in Bavaria, inexpensive is also a relative concept that has developed from comparing prices for similar properties in different countries. For example, an apartment in Moscow itself will cost more than a purchase in developed Bavarian cities.
The variety of supply on the market also helps foreign investors fit into their budget. Real estate in Germany in Bavaria includes small inexpensive apartments, luxurious apartments, elite villas, castles, income-generating houses, etc. With such a variety of offers, almost any investor can find a suitable property.
Real estate in Southern Bavaria is also quite affordable. This part of the region is less "promoted" among foreign investors, and here you can find very interesting and affordable offers.
Pros and Cons
Before buying real estate in Bavaria, it is worth weighing all the pros and cons. The German real estate market and the relationships between parties in any transaction differ significantly from Russian reality. Deciding to thoughtlessly buy an apartment in Bavaria for rental income can lead to a number of unpleasant surprises both during the purchase and sale transaction and when renting out your property.
The most important factor that cannot be overlooked when choosing real estate in Bavaria to buy as a profitable investment rather than for personal living is the additional costs that the buyer, and then the owner renting out the apartment, will incur. These associated expenses include:
• Real estate acquisition tax (3.5% of the price).
• Notary fees, which must accompany the transaction (a specific amount is charged for each operation, on average expenses amount to 1.5% of the transaction value).
• Fee for re-registration of ownership rights (0.5 – 1% of the property price).
• Real estate agent commission (3 – 6% plus VAT).
Is it worth buying real estate in Bavaria? Of course, only the buyer themselves can answer this question after a thorough analysis of the situation. But I would like to note that Bavarian real estate today remains one of the most profitable and, importantly, low-risk investments.
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