Expert guide to invest in Frankfurt property.
Investment in real estate in Frankfurt: What should an investor know before buying?
One of the most stable markets in the world is the German property market. Today, it is a seller’s market – there are fewer assets than investors who want to purchase them. The easiest investment choice is obtaining buy-to-let residential properties which would yield an average of 2–3 percent per annum. The low yield rate is compensated by the property ‘s high liquidity which can be sold in a moment’s notice easily and rapidly. Yet what else should an investor learn before buying property for investment in Frankfurt?
For many reasons, Frankfurt is a tough city to find accommodation in.
For starters, the city has a fantastic subway network and accessible bike lanes that ensure you can easily get around the city for work or school, wherever you stay. Most school-age children often commute across the city for their Gymnasium (high school), which means that when searching for the right home, you don’t really need to be bound to school catchment areas. So this shows you that the whole city is a decent place to live, but the options are vast. To get some success, you need to narrow it down.
Second, with lots of new job growth, the city has a lot of population pressure but without the requisite housing or schooling to cope with the influx. That means you have to act very quickly when nice accommodation comes onto the market. And prices are on the rise , especially in Ostend where the ECB has just opened its new tower.
3 best areas of Frankfurt for real estate investment
The city center, or Innenstadt, contains many of Frankfurt ‘s tourist highlights. The Altstadt (old city) has the re-created Römer, with an impressive Rathaus (town hall) surrounding the square and fountain. These sights, like almost everything in Frankfurt, are recreations of their pre-WWII selves, but that doesn’t make them any less endearing.
Be prepared to pay top dollars to stay in the heart of Frankfurt and constantly contend with tourist crowds. There are plenty of dining and nightlife choices on the plus side, in places like the Freßgass (grazing street). This pedestrian-only street inside the Bankenviertel (central business district) is the main culinary street of Frankfurt. With a shopping spree on the Zeil, Frankfurt’s most popular street, you can sate your hunger for material stuff, too.
To the northeast of the Innenstadt, with its charming medieval architecture and small-town feel, Bornheim is densely populated and nicknamed das Lustige Dorf (the Funny Village). It has a big international population, and is a great place to live – full of apartments, restaurants, and bars.
Bergerstrasse’s main street is a shoppers’ paradise, with plenty of cafes and restaurants where you can charge your batteries. Small streets in every direction dart off, offering a smaller, more community-oriented feel.
The Altes Bornheimer Rathaus, with its magnificent half-timbered building, Baroque features and history dating back to 1770, is the main attraction. There is a farmers market at Uhrtürmchen (clock tower) every Wednesday and Saturday with freshly prepared local produce and meals. Relax among Chinese pagodas and dragons at the large Bethmannpark.
The U4 U-Bahn line goes straight through Bornheim’s centre, which means it’s easy to get to and move around.
Old-school Sachsenhausen is across the river and stretches very far to the south, but the most famous is the nearest part of Sachsenhausen-Nord.
With its all-paved streets and small-town look, this relatively quiet place illuminates at night. The area is renowned for its apple wine (apfelwein or ebbelwoi), and there are many traditional bars offering the drink, as well as tourist-oriented clubs and nightlife options, especially on the busy Schweizerstraße, which also has everything from boutiques to bookshops. There are also plenty of museum options along the Schaumainkai, as well as a big flea market every Saturday, come rain or shine.
That makes Sachsenhausen popular with crowds of students and bohemians. There are some affordable housing choices as well as some more historic buildings as the other side of the river wasn’t as heavily bombed as this. The farther you go from the river, the smaller the population is, as well as more suburban and more affluent.
Buy-to-let real estate in Frankfurt
No limitation is imposed on foreigners buying attractive property in Frankfurt, irrespective of whether they reside in Germany or elsewhere. Therefore, as a non-resident, you can buy property for the express purpose of renting it out or you can choose to rent your own home if you move away from Germany. Although rental property can be a good source of income for homeowners, rental contracts are pro-tenant in Germany, meaning landlords have strict responsibilities to their tenants.