2016 was a very eventful year in global politics and 2017 has kept pace so far. The Brexit vote of June 23, 2016 was followed by the invocation of Article 50 by the British government on March 29, 2017. This has grave implication not just for the UK, but for Germany as well. So what does this mean for you are planning to sell property in Germany fast in 2017?
Germany is expected to emerge as the powerhouse of Europe, economically and politically. Britain’s withdrawal from the European Union has certainly pushed the German Chancellor Angela Merkel in a leadership role. She is now the most dominant leader in Europe.
This dominance has rubbed off on the real estate sector in Germany as well. According to Knight Frank, a leading global real estate company, there were transactions worth $59 billion done in the German property market in 2016. That is huge, and one can only speculate as to how much of this was because companies are looking to shift their European headquarters from London to Berlin.
Many overseas property investors are looking at Germany very seriously. There is a real demand among many high net worth individuals for homes and apartments in cities such as Berlin, Frankfurt, Munich and Dortmund, to name just a few. This has led many to buy apartments in Germany online this year.
The German property market is on the way up. Investors consider Germany to be a safe haven for their investment. Prices of properties for sale in Germany have been shooting up, especially in the main cities such as Berlin. Berlin is now a bona fide challenger to London’s position as the financial centre of Europe.
Other German cities such as Frankfurt, Hamburg, Munich, Cologne, Düsseldorf and Stuttgart have been doing fairly well as well. Over 40 percent of the high-end property deals in these cities in 2016 involved foreign buyers, which goes to show that the foreign interest is picking up fast.
Frankfurt is another city which has been developing very well as a financial hub. Over 230 international and national banks and financial institutions already operate out of Frankfurt. The rental market here has been soaring; and that too at an unprecedented level, the likes of which has not been seen since the fag end of the 2007 pre-crisis period.
Brexit has made many major multinationals to look elsewhere, as the situation in the UK has become untenable for a lot of them. What worries many companies that UK leaving the European Union is only the start. There are nationalist movements led by Euro-sceptics in Italy, Poland, Greece and France – where a Presidential election will be held in just a couple of days from now.
Germany is a stabilising force in a continent where the politics seems to have become unpredictable all of a sudden. Chancellor Merkel’s hold on Germany seems unshakeable despite immediate problems such as the refugee crisis. This confidence is reflected in the real estate market in Germany.