Newsletter September 2012


Property Prices Rising | German Property For Sale – September 2012 Update


     

September 2012

 

Welcome

Welcome to our German Property market update for September 2012. In this edition, in addition to a selection of our latest property offerings, we take a look at Germany within the Eurozone and also review what has happened to rent levels in Leipzig and Bremerhaven.

As ever – please contact us if you would like any more information.

 

Updating our Property Updates

We have now updated the method in which we communicate – we can now provide property updates depending on how often you want them. If you click the link below, you will be able to update your preferences on price and location – and also choose how often we alert you to new investments available – either Daily, Weekly or Monthly updates are available – if you don’t update your preferences we will of course continue to send this, our monthly summary:

Germany and the Eurozone – the Last House Standing

There is a current plethora of articles which are commentating on the current Eurozone woes and speculating on the impact and forecast for the various world markets in the coming years. There’s a fair amount of doom and gloom about, which can be a good time to go shopping. In this article, we bring together a lot of the research on the Eurozone and try to make sense of all of this in evaluating if the German property market is one to participate in at the moment.

Due to its “last man standing” status, and historic low interest rates, Germany is experiencing a boom in interest in the property markets from around the world. Is this demand justified or is it just the least worse place to put your money? Lets look at demand…

Looking at demand for property, from the domestic market and from foreign investors


Rent Reviews

Leipzig

Rental levels have remained low and fairly static for much of the past decade in Leipzig. A higher than average housing vacancy rate of around 15% some years ago lead to an over supply of apartments, particularly in eastern parts of the the city which gave tenants good bargaining power. In recent years, through steady population increase and a removal of dilapidated buildings the vacancy rate now stands at 10% across the city. In many areas, there is no longer an over supply and rental developments have taken place.

We look at Leipzig, district by district, where have rents increased by 10% in the last year, and where have they fallen by 4%…(PDF download)

Bremerhaven

With the population trend over the last decade having been either negative or neutral, until 18 months ago, rental levels have remained low and fairly static for much of the past decade. The times when this coastal city of Bremerhaven had over 140,000 inhabitants is a thing of the past, with the population of the city most likely causing some residents cause for concern at times, finally in 2011 there was, for the first time for a long time, a clear positive migratory movement into the city. Now, with things on the up, rental prices are finally following suit and also increasing due to greater demand for quality housing, and with that we are seeing an increase in purchase prices due to greater investor confidence.

We look at Bremerhaven in detail, where rent is going up and why…


Latest Property Offers

Single Units

PV705: Schloßchemnitz 40sqm apartment


24,000€ | Chemnitz
Potential Yield: 10%
Type: Residential
Approx. Size: 40 sqm

This monumentally protected property was built in 1920 and completely refurbished in 2003. With a floor area of 40m2 which consists of two rooms, a kitchen and a bathroom, this property is well laid out. There are conveniently close public transport link, and shops and other amenities are also close by.



PV721: Studio apartment – north of Leipzig


26,000€ | Leipzig
Potential Yield: 8.77%
Type: Residential
Approx. Size: 38 sqm

This apartment is located in a peaceful area in the north of Leipzig around 20 minutes from the city centre by public transport. In an ideal location for tenants who need convenient access to Leipzig Messe and/or the airport, this unit is compact in size and also boasts its own terrace.



PV725


39,500€ | Madgeburg
Potential Yield: 7.29%
Type: Residential
Approx. Size: 50 sqm

This cozy 50m2 apartment can be found on the first floor of a side building. Divided into 2 rooms, a fitted kitchen and a bathroom, this property is located close to the city centre and to the main train station. A particularly appealing feature of this property is its terrace which provides direct access to a green courtyard, where tenants can relax and enjoy barbecues in the summer.



PV733: Top apartment in Sudvorstadt


59,000€ | Leipzig
Potential Yield: 6.4%
Type: Residential
Approx. Size: 45 sqm

For sale here is a 45m2 apartment located in a quiet cul-de-sac in one of the most popular areas of Leipzig; Sudvorstadt. This part of the city borders directly with the city centre. A park and a forest area are located near to this property, where a unique view of the city centre can be seen. Despite the abundance of green spaces in the neighbourhood, this property is located within good proximity to the centre of Leipzig. Although this property is not currently rented out, the combination of convenience and desirability of location, accessibilty by lift and its sufficient car parking spaces all make for an appealing place to live for many tenants. If a competitive rent of €7/sqm was charged for this property, the yield would be around 6.4%.


Leipzig

PV495


580,000€ | Leipzig
Potential Yield: 8.8%
Type: Residential
Approx. Size: 1077 sqm

This investment opportunity is a 16-unit, entirely residential property in Neustadt-Neuschönefeld, an area extremely close to the city centre, and well-connected to other areas by a frequent and efficient tram service. The property – built in 1903 and entirely renovated in 1998 – is in excellent condition, and retains many of its original features, such as doors and beautiful stucco ceiling. All bathrooms are tiled, and refurbished to a modern standard. Most units have balconies, located to the rear of the building overlooking a small but attractive garden. Units are sized between 40 and 90 sqm, thereby covering a wide range of the market for tenant demand in this area.



PV492


745,000€ | Leipzig
Potential Yield: 8.22%
Type: Residential
Approx. Size: 1137 sqm

This is an entirely residential 15-unit property based in the attractive suburb of Leutzsch, an appealing area a few kms to the west of Leipzig. A corner property, it is in a very appealing microlocation with both streets in good condition, and enjoying strong tenant demand. It is only a hundred yards from the nearest tram stop, which provides a regular service into either the town centre, or toward nearby Lindenau, a vibrant market centre for shops, and a variety of local amenities.
The individual units consist of units sized between 60 and 80sqm, thereby appealing to a good portion of the tenant market – all but one are currently let. There is parkland nearby, as well as a garden allotment park, a well-used amenity for residents of Lindenau and Leutzsch.


Bremerhaven

PV549 City Centre MFH. Great Yield


315,000€ | Bremerhaven
Potential Yield: 9.21%
Type: Residential
Approx. Size: 675 sqm

The Property is very well situated in a prime location in the district of Mitte directly in the Centre of the City of Bremerhaven. Only 200 meters away lies the pedestrian zone on Bürgermeister-Smidt-Straße, in addition the property is just 300 meters from the Weser River and the North Sea. The infrastructure is largely urbanized and organized centrally, for the daily needs within walking distance.
The Property is a mixed residential and commercial building with 8 apartments and 2 commercial units on the ground floor (House Management Company and Hairdresser). It has a good building stock and consists a full basement, four floors and a converted attic. The owners currently carry out extensive renovations to the building and into the homes and provides the building fully renovated and restored, with zero vacancies.



PV552-Refurbished MFH in Good Location


265,000€ | Bremerhaven
Potential Yield: 9.43%
Type: Residential
Approx. Size: 399 sqm

The property is well located in the district Geestemünde near the Centre of the City of Bremerhaven on a quiet side street, just 1 minute walk from Schillerstraße. Schillerstraße is a well-developed road with a very good foot-accessible infrastructure for daily needs for the residents of this district. The Centre of the City of Bremerhaven with its pedestrian zone is easily reachable within walking distance in approx 15 minutes. The property is undergoing extensive refurbishment and has a total of 8 apartments and made from very good and solid building stock. It consists of a full basement and four floors, with intercom and modern plastic framed windows with thermal insulation glazing. After the existing owner has carried out the extensive renovations to the building and apartments, the property will be sold fully rented, with zero vacancy.



PV553 Excellent location and refurb MFH


425,000€ | Bremerhaven
Potential Yield: 9.65%
Type: Residential
Approx. Size: 794 sqm

The property is well located in the district Geestemünde near the Centre of the City of Bremerhaven on a quiet side street, just 1 minute walk from Georgstraße, well-developed road, which along nearby Grashoffstraße, provides a very good foot-accessible infrastructure for daily needs for the residents of this district. The Centre of the City of Bremerhaven with its pedestrian zone is easily reachable within walking distance in approx 15 minutes. The property is undergoing extensive refurbishment and has a total of 14 apartments and made from very good and solid building stock. It consists of a full basement and four floors and converted attic; with intercom and modern plastic framed windows with thermal insulation glazing. After the existing owner has carried out the extensive renovations to the building and apartments, the property will be sold fully rented, with zero vacancy.



   
 


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