German Mortgage Market overview

7 small cities to consider for a German mortgage

The so-called Big Six – Berlin, Hamburg, Munich, Frankfurt, Düsseldorf and Cologne – are often the ones where real estate investors keep their eye on when considering a German mortgage. However, it is worth noting that the housing market in Germany is an attractive location for homebuyers regardless of the city they chose to invest in! Incredible opportunities are waiting around the country, and some of them are remarkably close to the Big Six – Potsdam and Oranienburg, we’re looking at you!

 

Keep reading to find out more about 7 small cities to consider for a German mortgage – as suggested by Focus’ 2020 Real Estate Special! 

 

Oranienburg

This city is sought after by families as a more accessible alternative to Berlin since Oranienburg is only 35km away from the German capital (20min by train). Expansion plans for the real estate market in the region look promising too. By 2021, at least 1530 house and 1020 new flats will be finished, and by 2030, the number of new-build flats might reach 3800. When it comes to prices, new properties cost around 3,400 Eur/sqm. 

 

Greifswald

This Baltic sea jewel has 200 applicants on a wish list waiting for building approval. Only 78 houses were completed in 2018! Housing is scarce, but the scenario is promising: unemployment decreased by 6.9% by the end of 2019, and a new centre for life science and plasma technology is due to completion mid-2022 in the Greifswald University campus. The city council has also promised the completion of 92 real estate projects until the end of 2021. Price-wise, 2019 reports indicate prices between 1,600 and 2,200 Eur/sqm for single and double-family homes, while new build properties can go between 2,150 and 3,220 Eur/sqm.

Potsdam German mortgage

Potsdam

Located in Brandenburg, Potsdam is only a quick drive away from Berlin (45 minutes!) – and their prices can be quite similar too. Existing property prices can go up to 3,000 Eur/sqm and new build properties, to 5,000 Eur/sqm. Detached houses can reach up to 500,000 Euros and will surely increase in value over time.

 

Mannheim

Mannheim is located in the south-west region of Germany. This city is the third-largest in the region, following Stuttgart and Karlsruhe. Ranked by Forbes Magazine one of the Top 15 most inventive cities in the world, Mannheim is also a prime location for real estate investment in Germany! Between 2014 and 2018, the price of properties tripled, reaching 2,925 Eur/sqm. New build properties in the area are around 4,200 Eur/sqm – and there’s a strong trend of rising rental and purchase prices. Check out our mortgage calculator to find out how much you can afford!

 

Landshut

This town is one of the richest industrialised places in Bavaria, a region located in the south-east of Germany. Landshut is also the capital of East Bavaria, with the credential of having the region’s lowest unemployment rate. Close to Munich (70km) and the Franz Josef Strauss International Airport, this is certainly an area to keep an eye out for investing in real estate. In the first half of 2019, prices for new build properties started at 5,000 Eur/sqm. With rental prices starting at 7 Eur/sqm, the city predicts a 50% increase in price within 20 years. It is worth buying – talk to a mortgage broker to help you with all possible doubts!

 

Görlitz

Fun fact: this beautiful German village is famous for its architecture, which you might have seen in films like Inglourious Basterds, The Book Thief, and The Grand Budapest Hotel. On the border with Poland, this city has 56,000 and it’s connected with Berlin by train. The price remains moderate – between 71000 and 106000 Euros – but investors must expect renovations for older properties. According to the Accentro’s Real Estate 2019 report, that calculates the advantage between buy-to-let and buy-to-live, investing in a property in Görlitz to live in might be 66% more economical than renting it out.

Furth German mortgage

Fürth

With only a 7km distance from Nuremberg, Fürth is the 7th largest town in Bavaria. After suffering from the 2009 recession, the town is now a prosper hub again, with the unemployment rate at 2.9% (July 2019) and the promise of new 10000 job vacancies per year. However, investors looking for German property should hurry up: despite delivering around 800 new properties per year, the city is running out of new residential areas, which will make the prices go up. 

 

Our LoanLink mortgage advisors are happy to answer any questions. Our goal is to help you find the best loan.

You may email us at service@loanlink.de or by phone +49 (0) 30 5683 7535. You can also start with the LoanLink mortgage illustrator here:

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