German real estate development: tips for investors
Tranio has been working with overseas real estate for more than eight years. Over the past three years, the company has been focussed on development projects, primarily in Germany. Good investment projects are not easy to find in the central European country: there are not enough projects to meet investment demand, and local professional developers can afford to be picky with whom they choose to work. Most projects are apartment constructions, requiring €3mn to €50mn on average and last 18 to 36 months. Usually, developers do not invest their own funds in a project but obtain financing from two sources: bank loans (65–80%) and investor capital (20–35%). Investments in Germany are secure Many experts predict that a price adjustment can be expected in markets around the world, as the decade-long growth cycle reaches its peak. Therefore, it makes sense to invest in the countries that are most protected from unfavourable market situations, and Germany is one of them. I see three ad
