Federal Statistical Office

Real estate investments are among the most popular forms of investment in Germany. Magdeburg, 25.06.2013. Just in the last few years the real estate market has experienced a real rush. Blame”for this is the financial and debt crisis in the eurozone, which has contributed to the uncertainty of investors and thus ensured that these rather housed see their money in safe, stable property than to leave it on savings accounts, to insurance companies or to buy shares. You benefit from a real estate a life: before you which resold these, still a good yield can be achieved through rental income and the money is safe.

“The negative side of this development is of course the fact that the German market as well as browsed” is. Especially in the popular big cities, it has become by now relatively rare to find even a good real estate and thereby obtaining simultaneously ideal opportunities for returns. Munich, Hamburg, Frankfurt and Berlin are now so expensive now, that the purchase price hard to wear are, if you look at the rent compared to, which you can take in these objects. It is similar in the German speaking countries. Experts now advise that property not finding more in the large and popular Mainstreammetropolen but prefer to switch on medium-sized German towns or to Dodge but in the outlying areas of major cities. The price surge is no longer compensated by the rents and thus real estate in the top positions have hardly value development potential”, according to the experts of MCM investor Management AG in Magdeburg. Higher yields on offer for residential and commercial buildings in cities such as Leipzig, Dresden, Magdeburg, Munster and Karlsruhe.

Here, the yields are about 30 percent higher than at comparable objects in Hamburg or Munich. In addition to the unequal relationship between purchase price and rent, there is also the uncertain future that discourages some investors and investors to pay the high prices for the properties in major German cities. Da of housing construction in the urban centers last again strongly increased, it remains questionable whether the expensive apartments or houses can be resold at all in some years with profit. In the past year alone the construction was approved by 211.155 new apartments, so the Federal Statistical Office, what compared to 2011 corresponds to an increase of 5.5 percent. Also, this development could lead to a decline in prices and rents, as soon as the offer has adapted to the demand. Therefore, it is now high time that move investors away from the cities and towards the smaller cities and outlying areas. University cities are particularly recommended by experts, because here the huge demand for housing in recent years. These are often small towns, where the prices are still relatively low, but whenever someone finds, who would like to rent the objects. The MCM investor Management AG in Magdeburg resident, has this B cities trend”detected early enough and let its investors participate in the form of profit participation certificates in the positive development of real estate in East German cities. Benefiting directly from the many years of experience and the resulting profits, which made the company the investors. Why should you throw themselves so at the overpriced metropolis if there are alternatives that are more cost-effective and productive? And let’s face it: who wants to be mainstream today?