In the five years, number of Pakistan have been investing in property in Germany. This is due to the fact that property prices there increase by 10 to 12% every year, and are therefore lucrative investments. Furthermore, the processes involved in purchasing property are relatively easier when compared to other European countries.
If you are thinking about investing in property in Germany, these factors are important:
1. Pakistanis can purchase residential and commercial property in Germany even if they are non-residents. However, purchasing property does not give owners the right to reside there on a permanent basis.
2. to purchase a property, buyers are not required to be present in Germany in person and can finalise the deal by securing the services of a lawyer there.
3. a mortgage amounting to 60% of the property’s price can be financed by banks in Germany; annual interest rates range between 1.15 and 2.3% over a period of 10 to 20% years.
4. Additional costs associated with purchasing property include a notary fee, a registration fee and VAT which amounts to 23% of the total value of the property. A property sales tax is also required within a month of purchasing a property; this ranges between 3.5 and 6.5% of the property’s price.
5. Cities which are attracting the most investment include Berlin, Hamburg and Munich.
6. The prices of property (per square foot) are as follows:
Available size range: 970-1,000 sq feet
Purchase price range (per sq foot): Rs 35-39 million
Monthly rental range (per sq foot): 130,000-150,000
Available size range: 1,600-2,000 sq feet
Purchase price range (per sq foot): 78-80 million
Monthly rental range (per sq foot): 200,000-280,000
By Nimra Sajjad. Information Provided by Immobilien Scout24, Germany