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 [email protected] or by phone +49 (0) 30 5683 7535. You can also start with the LoanLink mortgage illustrator here:

What our customers say about us

Eliza Apperly
Eliza Apperly
14:56 12 May 20
I’ve had an outstanding experience with LoanLink and would highly recommend their services – particularly to those who are less familiar with the German market. The platform is excellent, streamlining the somewhat overwhelming world of mortgages into a clear step-by-step guide and a thorough breakdown of different financing options and plans.Throughout, Jan Joisten has been an expert advisor - not only in his market knowledge but also in his true gift for customer care. I really appreciated his efficient, patient, and proactive approach, always getting back to enquiries really swiftly and making time to speak directly on the phone. He has consistently gone above and beyond to find the best offer - even in the very challenging circumstance of Covid-19 - and I’m immensely grateful for his support. Thank you Jan and the team, and all the very best! You deserve great success.read more
Elisa Eckes
Elisa Eckes
21:45 01 May 20
Our contact at LoanLink is Jan. We are very happy with the time he took to explain our mortgage options and the property purchasing process in Germany. He speaks English perfectly which was very helpful for us as our German is limited. Jan is very responsive, patient when we didn't understand something (the process is different than where we come from) and he was never pushy. He advised us and never tried to make us hurry to decide. Furthermore, LoanLink Dashboard is easy to navigate and very useful to do everything online. I highly recommend LoanLink.read more
oana botez
oana botez
08:35 24 Apr 20
The level of professionalism and customer care is impressive. The process was very easy and clear and I felt supported every step of the way. The agent that was helping me Jan, went above and beyond to make this happen and made me feel like this was a top priority for him. I only speak English, however this was in no way an issue. Thank you very much, it was a pleasure collaborating with you!read more
Nicolas Gotchac
Nicolas Gotchac
09:55 07 Apr 20
Great service, 100% recommended The whole experience was great, and everything went as smooth as it could! Jan was very responsive, always available to answer our questions. We got the best rates we could get, and even managed to secure it right before it rose. I cannot recommend their service enough!read more
Joop Tange
Joop Tange
10:01 23 Feb 20
Absolutely pleasure to work with them. They were quick and clear with collecting all kind of documents. Quick in replying emails, whats app messages etc. Nice communication. 1 point of attention for them. dubbelcheck the holiday back-up. But overall; i would choose them again. Trustworthy and helpfull. I didn't know any of germanlaws etc. They helped me out with everything to understand well. Thanks againread more
W C
W C
18:24 14 Feb 20
LoanLink helped me secure financing at a great rate and I am thoroughly grateful. My representative in Berlin was Jan, and he responded promptly and kindly to all my communications--honestly this was the best service I've ever had since arriving in Germany, and I'm glad it was on such an important front =) I would HIGHLY recommend LoanLink for serious inquiries about financing, they do an impeccable job.read more
王紹權
王紹權
20:56 11 Feb 20
Super supportive institute and strong agent. The process are clear and straight-forward. Agent i met is a great guy and very supported. Recommended!read more
Melissa Rodrigues
Melissa Rodrigues
19:59 11 Dec 19
Highly recommend LoanLink! Jan was our advisor and he was everything you could ask for -- dependable, helpful, respectful, quick to answer our questions, always thinking a step ahead, and very good at explaining complex mortgage topics! So happy with LoanLink.read more
Ana Batanero
Ana Batanero
17:07 03 Nov 19
The way to go to get a mortgage! LoanLink really helped me in the process of applying for a mortgage. The service was really quick and I got a really good interest rate. The agent that supported me was always super fast in the communication and always available for a call. Highly recommended.read more
Don Won Lee
Don Won Lee
16:25 17 Oct 19
Kind, quick and accurate. The best service I’ve ever had in Germany!
Marco Gonsalvi
Marco Gonsalvi
10:21 24 Sep 19
Awesome service. The Loanlink team is simply fantastic. Clear website, accurate information, easy to read comparison of different options and timely responses to any questions I had. I would not hesitate to use Loanlink again in future. Definitely recommended.read more
Nik Eleftheriou
Nik Eleftheriou
12:06 05 Sep 19
Fantastic experience with Jan and co at LoanLink. They were helpful and patient the entire way through. Thanks!
Nefidova Polina
Nefidova Polina
16:06 30 Jul 19
Me and my husband are happy that found this company. The guys are fast reactive, always very helpful. They speak a very good English, which is very important for us. Definitely can recommend to work with them.read more
ning zhong
ning zhong
15:47 23 Jul 19
Jan is a very good person. He gave us patient and careful guidance and helped us get a loan successfully. Loanlink is the right choice for getting financial support during property purchase.read more
Nikita Belokopytov
Nikita Belokopytov
15:12 12 Jul 19
Open, approachable and very friendly. Jan, the mortgage advisor was with us every step of the way. He was always very friendly, empathic and helpful. He was never trying to sell us something that we did not want and went to an extra mile twice for us. The whole process took about 4 weeks, which is quite normal. Loanlink have helped us to prepare the documents, find a good offer and negotiate an even better interest rate. They have even handled a real curve-ball from the bank in a way that we could not have done ourselves. I wish they made it big and I believe they have every opportunity to do so.read more
Kurt S
Kurt S
09:59 25 Jun 19
Trying to purchase property whilst between 2 countries is a challenging and time consuming task. The LoanLink website was excellent in providing helpful information and also in outlining our options. Jan, our consultant, was always very responsive and guided us through the financial options (in both Deutsch and English language). We're very grateful for the help and the loan that LoanLink was able to broker for us.read more
Nadia Tcherniak
Nadia Tcherniak
13:42 20 Jun 19
I have really enjoyed my whole experience with LoanLink. Both me and my husband speak German and have experience in the German real estate market and we still chose to deal with LoanLink as our mortgage broker. Why? 1) 100% online. We are both working full-time and have little time left for long face-to-face appointments and consultations. I loved the user-friendly interface of LoanLink and the possibility to upload everything online. 2) Our broker, Jan was very responsive and efficient. We got an approval in no time. 3) We got a GREAT offer from the bank through LoanLink and are very happy with it. When we will be buying the next property, we will definitely use LoanLink again.read more
Hnin Wah
Hnin Wah
12:12 12 Jun 19
As being a Non-EU citizen with limited German language, it was impossible to get mortgage loan before I found out about LoanLink. Stefan Köppen is my mortgage advisor from LoanLink. He is extremely professional and very responsive by answering all my questions immediately during the process of getting the loan to buy my first home in Germany. Not only he did get me a mortgage loan but also he had the best customer service I've ever seen to help me becoming first time homeowner. Thanks Stefan (LoanLink), I appreciate your great work!read more
Yuriy Nazarkin
Yuriy Nazarkin
08:20 07 Jun 19
Just signed my mortgage contract! Support which received from LoanLink colleagues was impressive, helped me a lot during all steps of application. Nice and professional people to work with. 100% recommend!read more
Ziad El-Jayyousi
Ziad El-Jayyousi
06:08 25 May 19
Highly recommended. Professional and Friendly team, prompt communications. Additional help provided when needed. The whole application and approval process from start to finish with the bank mortgage contract in the mailbox was complete within the same business week! Couldn't have had a better service than this, and highly recommend LoadLink!read more
A B
A B
11:04 21 May 19
I can leave only very positive feedback from my experience with LoanLink and especially with my broker Stefan Koeppen. Stefan was always very professional and fast with his actions. He was very well in structuring a deal and always could find alternative solutions when something went in a wrong direction or was not so applicable for me. He was open, transparent, ready to help with valuable advises when needed and very operative/fast (which is not common for Germany). Many thanks and good luck Well done!read more
Marija Koteva
Marija Koteva
07:00 20 May 19
Fantastic experience, they are always available and very knowledgeable for all mortgage-related topics, even for general property market information. I had a specific case with being on a visa, and only a couple of months in Germany and did not think I would be even eligible for a mortgage, but LoanLink found great offers for me. Trustworthy, personal, professional, reliable - I could not thank Stefan enough for helping me get my first home.read more
Thiago Medeiros Araujo
Thiago Medeiros Araujo
16:56 13 May 19
LoanLink was great! Stefan gave us an excellent support! Great option for expats in Germany! He found was an option when other banks said it was not possible! Highly recommended!read more
princess dyanne tuliao
princess dyanne tuliao
19:24 12 May 19
Through Loanlink we were able to find competitive bank loan offer. It was even better than another offer made through the same financing bank. The colleagues are very professional, supportive and available whenever needed. Excellent customer service! 🙂read more
Tracy Comstock
Tracy Comstock
12:40 29 Apr 19
Without LoanLink, I do not think we would have been able to purchase a property here in Germany. Başar was wonderful; he was incredibly responsive, he had a host of contacts who could speak to us for a variety of situations, and he was also just really friendly. He took the complicated process of buying a new build property in a country where we aren't fluent in the language, and made it accessible and easy. I would recommend this company to any ex-pat looking to buy in Germany.read more
linda gunarso
linda gunarso
00:53 22 Feb 19
I found loan link from Google. I tried getting in touch to find detail info on home loan In Berlin. Jan called me and has been assisting me since then until the purchase is finally completed. He is very patient in getting my queries answered and to go through every step following my busy time as a Mother with infant. He is quick to respond and proactive in getting in touch to make sure the loan application in progress. I really appreciate his assistance and patience. Thank you very much.read more
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