Germany's capital city, with a population of more than 3.7 million, is the second most populous city in the European Union. According to a report by PWC and the Urban Land Institute, Berlin was named the top market for real estate investment and development for three years in a row (2016-18).
With around 40,000 business registrations and more than 500 startup companies each year, Berlin is undisputedly Germany's founder capital and is expanding its nationwide lead. The capital is particularly appealing to founders in the creative sectors and technology, thanks to much lower real estate costs and office expenses than other major European cities. Berlin attracts young and highly qualified people from all over the world. Roughly 40 percent of its residents are younger than 35. The high quality of life with comparably low living costs, eclectic nightlife and international environment are the reasons why a lot of international entrepreneurs, creatives and venture capitalists decide to call Berlin their second home.
Germany's strong economic growth has resulted in price increases across German cities: On average the prices doubled in the last 10 years. Rents also follow the house price development in Germany: the average increase amounts to 50% between 2008 ad 2018.
In Berlin, the average annual property prices per square meter has increased from 1.600€ in 2008 to 3.840€ in 2018. Meanwhile, the average rent prices per square meter also increased from 5,90€ in 2008 to 11,10€ in 2018.
LoanLink is a german mortgage broker specialized in the Berlin real estate market. We also help expats and foreign investors get a mortgage. Our highly professional Berlin mortgage broker team provides excellent advices in English and German. Moreover, we leveraged advanced algorithm technology to find the best mortgage deal from over 400 regional and global German banks.
Our smart online mortgage platform is available round the clock to advise you throughout the German mortgage process. For instance, you can use our mortgage calculators to check your loan amount and monthly repayments. What’s more, our service is in English and is completely free of charge.
LoanLink is registered and controlled by the surveillance authority in Berlin.
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Berlin, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, purchase fees may be up to 15% of the property’s purchase price. Similar to a downpayment, purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Berlin, the approximate additional purchase fees are as follow:
Real estate tax: 6%
Real estate agent fees: 7.14%
Notary costs: 2%
Total costs: 15.14%
For more information in regards to the additional fees you would pay when buying a property in Berlin, please check out our mortgage calculators for a more accurate calculation.
First, the exact amount of your deposit depends on if you live and work in Germany.
I live and work in Germany:
You can borrow up to 100% of the property price. Overall, your deposit should cover the purchase fees, which will depend on the property’s location in Germany. Usually purchase fees are between 5-15% of the property price. Such fees include: stamp duty, notary fees and real estate agent tax.
I do not work in Germany:
Generally, you can borrow up to 60% of the property price. So, your deposit should cover 40% of the property purchase price as well as the purchase fees (5-15% of property price). As shown above, these fees include stamp duty, notary fees and real estate agent tax.
Altogether, the timeline depends on you. If you have all relevant documents ready the process can take only a few days. In case you want to be covered as fast as possible, please let us know. We have direct relationships to the credit departments of our partner banks and can accelerate the process.
As soon as you decide to buy, there are several good resources for locating a property in Germany. A few of the most common resources are the major residential real estate pages like immobilienscout24.de or immowelt.de .
Additionally, you can approach local real estate agents or the construction company. Also, please approach us. We have partners in Frankfurt, Berlin, Munic, Hamburg or Stuttgart who are ready to help.
Once you decide to purchase property in Germany, contact the LoanLink Mortgage advisors via live chat, email or phone. Whenever you have a spare minute, you can also read our German mortgage blog to learn more.
Buying a home is complicated and stressful - even for German native speakers. We’ve created a comprehensive and easy to understand guide to buying a property in Germany: