Economic Factors In Germany

When considering property purchase in Germany, many buyers will be encouraged to know that the country offers a large number of economic advantages to overseas investors.


Strong Rebound Return to Reliable Growth

In 2009 the financial crisis brought a 5.1% contraction in German GDP, but in 2010 it bounced back with growth of 4.2% far stronger than the years running up to the crash, and this was followed by a 3% growth in 2011. However, growth is thought to have slowed last year to just under 1%, but if one knows Germany this will mark a return to the slow steady, but ever-continuous growth.

Property Prices Low and Growing

Despite strong growth in the last 2-3 years German property prices are still very low compared to other developed nations of a similar size and stature. This is because of government regulation of rental rates, which indirectly regulates property prices. Since the crash economic growth has fuelled wage growth, allowing for increases in rental rates, which have driven up prices.

Strong Stable Economy, Incredible Scope for Growth

Germany is the largest economy in the EU, the 5th largest economy in the world by purchasing power parity and the third largest exporter in the world. Incredibly the export industry isn't even the biggest player in the German economy, in 2008 the services sector accounted for 69% of GDP and employed 67.5% of the workforce. Meanwhile the industrial and construction sector, mainly the production of automobiles, machinery, electrical equipment and chemicals accounted for just 29% and employed 29.7% of the workforce. That its export industry can be so vast in the world and so small within the country, shows the massive scope for growth in the German economy.

For decades Germany has been one of the most stable economies in Europe, showing continued steady growth and fiscal responsibility even as others bubbled and burst.

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