Comparison of real estate investment in Germany with Turkey

Is real estate investment in Germany profitable?

Germany is ranked among the strongest economic centers and investment destinations in Europe, thanks to its diverse investment opportunities that continue to attract major and medium investors who see it as a strong commercial and economic hub. Its industrial superiority has made it a destination for both industrialists and traders, who also benefit from the available facilities in the free trade sector, including export and import, in addition to investment in the real estate sector.

Real estate sales have recorded encouraging numbers, indicating a growing interest from foreigners in recent years, seeking to benefit from the returns of this vital sector. This naturally indicates the presence of strong incentives supporting this upward trend, which has also benefited from the prevailing inflation in prices over the past years.

What are the advantages of real estate investment in Germany?

The importance of the German real estate market stands out as it is a strong and active market, one of the most important and powerful construction markets in the world, and relatively distant from what is known as real estate lobbies due to Germany's strict laws and strong protection for property owners. In addition, Germany offers robust infrastructure and government facilities that do not discriminate between foreigners and Germans.

The great role played by Germany's stability and security in making it a preferred destination for foreign investment is also evident, as it is a country of advancement in industry, trade, and real estate investment.

So, what are the main reasons that could motivate us to invest in real estate in Germany?

1. Real estate Freehold laws in Germany, where foreigners and Germans are treated equally. This encourages investment and provides a foothold for many investors wishing to start their investments in Europe.
2. The possibility of obtaining residency in Germany, with the benefit of easy movement between European Union countries.
3. Germany's ideal geographic location in the center of Europe, its large area, and its diversity of opportunities.
4. A country that is politically, securely, and economically stable and supports investments in all fields.
5. The competitiveness of the investment market in the real estate sector in Germany, and the possibility of making a profit with good property management.
6. Strong infrastructure, and comprehensive community and government services in all aspects of life.

What are the conditions for real estate investment in Germany for foreigners?

Unlike other European countries such as Denmark and Switzerland, there are no restrictions on foreigners owning property in Germany, and the Freehold process in Germany is relatively smooth.

The process of acquiring property in Germany only requires simple procedures, usually carried out before a notary public or even at a consular representation, and without the need to travel to Germany.

In this context, a good segment of foreign investors is heading towards property Freehold in vibrant German cities such as Berlin, Frankfurt, and Munich.

Does Germany grant residency by purchasing property?

Legally, it is not possible to obtain German citizenship or permanent residency simply by investing in real estate. However, if you are able to live in Germany relying solely on your own funds, you may be granted a temporary residence permit if you purchase property on German soil. With the residence permit granted for this purpose, you are not allowed to engage in any economic activity under this type of residency, and it is not certain that you will become eligible for German citizenship or permanent residency through this route.

Although Germany does not have a golden visa program, it is still possible to obtain German citizenship through investment if you start a business that meets a particular economic interest or need. Through this route, a foreign investor can obtain a residence permit in Germany and become a German citizen after six to eight years of residency.

Average property prices in Germany?

Based on the latest real estate studies published up to the date of writing this article at the beginning of 2023, the main German cities have recorded varying average costs for purchasing one square meter, as follows:

This gives a more realistic picture of property prices in these German cities. For further benefit, we leave the source of these numbers for our esteemed readers at the end of this article.

Comparison of real estate investment in Germany and Turkey in terms of:

There is no doubt that there are a number of differences between real estate investment in Germany and its counterpart in Turkey, which deserves some reflection:

1. Price

In terms of investment value, properties in Turkey are clearly cheaper than their counterparts in more than 140 European cities, as previously explained in our important article "Cheapest Properties in Europe 2023".

According to Zingat, a website specializing in Turkish real estate, the average prices (for both residential properties old and new) in the main Turkish cities, at the time of writing this article, were as follows:

From the above information, we notice that Istanbul ranks at the top of Turkish cities in terms of property value, followed by Antalya, with the cheapest being Trabzon.

We also note that property prices in Istanbul are much cheaper than all German cities according to the list we provided earlier.

2. Ease of procedures and conditions for foreigners

Both Turkey and Germany share facilities for Freehold and real estate investment for foreigners. There is nothing to prevent foreigners from conducting real estate transactions in either country in general.

Foreign citizens can acquire property in both countries through procedures described as smooth, with the possibility of completing sales and purchases through consular representations abroad.

3. Residency and citizenship advantages

As previously mentioned, property Freehold in Germany does not grant the owner the right to obtain citizenship, but only allows for temporary residency, without a work permit.

Meanwhile, Turkish laws grant the right to obtain a real estate residence permit to anyone who owns a residential property worth $75,000 in major cities, or $50,000 in other smaller cities.

Foreign investors are also entitled to apply for Turkish citizenship if the property value exceeds $400,000 USD.

4. Returns and investment value

Referring to the profit figures recorded by Turkish properties in recent years, we notice that the Turkish real estate market is one of the most active markets, offering investors a golden opportunity to increase their capital, especially in luxury property types that are always in high demand.

Meanwhile, the real estate market in Germany and most European countries in recent years has been described as stable, with price increases for properties in the last year only occurring within a small range, between 5% and 1.6%.

This may be an important reason why Turkish properties are considered more feasible than those in Germany and Europe at the present stage.

Exceptional real estate investment opportunities in Turkey offered by Imtilak Real Estate

Imtilak Real Estate has established its registered trademark in the real estate investment sector in Turkey through its pioneering and advanced services, which have made it a model that is difficult to match in terms of team expertise and quality of services.

We consider the successes of our clients' investments as our own true investment, which we have achieved through the trust of thousands of clients who have been satisfied with our services.

We understand the needs of our real estate clients and strive to meet them in the best way possible, thanks to our extensive portfolio of real estate opportunities. We aim to fulfill your aspirations for Freehold at the best possible price, whether within our exclusive marketing projects or elsewhere. We guarantee our clients a smooth process for completing the Freehold transaction, with after-sales services, property and investment management, and much more, the details of which we leave for your direct contact with our real estate consultant.

Edited by: Imtilak Real Estate©