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The Germany property market is quite unusual by European standards in that there has not been a boom in pricing in the last 10 years in line with many other European nations and the percentage of Germans owning property is the lowest of any European nation at just 44%. Therefore, due to the current stagnation of the market, German property is more affordable now than it has been for many years and it is more affordable than the majority of other western European nations.

Currently if you were to invest in property in the major German cities, you could expect to receive a yield of 9% annually. This is an attractive proposition and should the property market begin to pick up, your investment would prove to be very sensible.

The property market is widely believed to be depressed due to a number of factors, the main being the poor state of Germany's economy, the fact that German banks have been reticent to embrace mortgages as a viable financial product (many German banks will only offer mortgages to the value of 10% of the property price) and also the fact that much of German housing has been traditionally held by corporations and regional governments. There is evidence suggesting that some of these German corporations and regional governments are beginning to sell some of their portfolio so this may be a driver towards stimulating growth in the market.

Prices for property in Germany are in the following ranges -

Terraced house - €90,000
Detached house - €120,000 - €600,000+
Large city apartments - €235,000

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