MunichbBuyer, your points about the market being very poor for the past 10 years are correct although I believe we are close to the point of change of this property market compared to the rest of Europe.
The macro economic factors suggest the German economy is just starting to warm up after many years of regeneration due to the reunification. With property markets espeacially in the former East, such as Magdeburg and Leipzig at such low prices compared to the former West, these are hot spots ready for the taking. Yields are great and it's always important to rememeber that property is always in the main going to be driven by this factor.
Investors want to see the asset can manage itself... with yields at 4.5% in Berlin with no real industry surrounding it, I would question but don't discount other locations as every property market is local. It's the local economic drivers, infrastructure, amenities etc that will have a long term impact on the growth and prosperity of your investment.
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