This article first appeared in Estates Gazette.
Sabine Reimann outlines the basic principles of German real estate law and explores the key differences between the German and English systems.
Investment in Germany is becoming more attractive, but before parting with your euros it pays to be aware of German real estate law.
Germany is popular with investors at the moment. Investments in commercial real estate on the German market amounted to €19.67bn in the first half of 2006 (excluding non-performing loans and flats). Only 16% of the investment originated from German investors – most came from England, the US, Ireland, Israel, Denmark and the Netherlands.
Germany’s real estate market is becoming increasingly attractive. On a worldwide scale, prices are low and it offers a wide range of effectively managed real estate projects. However, when buying property in Germany, one must be aware of the legal bases and potential pitfalls.
