A number of investors prefer to invest in real estate on the coasts of resort countries, but pursuing their own private goals and not paying due attention to the fundamental nature of investments in this segment, there is an increased likelihood of emotional investments.
As a result, the investor becomes the owner of a little liquid object, which, in addition, is rapidly losing in value, and for the difference between the actual value of the property and the purchase price, the investor could repeatedly rent a luxury villa and leave without worrying about the object and its condition.
Against the background of Spain, with its sunny climate and fluctuating property prices, it becomes interesting to consider the resort cities of Germany, their offers, statistics and trends.
And the first thing that will interest a professional investor is that the price per square meter at German resorts is stable or increases in value - similar to large cities (Munich, Frankfurt, Berlin, etc.), while the number of offers is extremely limited.
Today, the cost per square meter of real estate with a prestigious location in German resorts is:
Sylt: € 17,000
Norderney: € 16,000
Tegernsee: € 15,000
Rügen: € 14,000
Just: 13.500 euros
Timmendorfer Strand: € 12,000
Föhr: € 11.000
Warnemünde: € 10.000
Usedom: € 10.000
Langeog: 8.500 euros
In turn, the German Real Estate Association (IVD) thoroughly studied the investment component of German resort real estate, conducted a study and calculated that by renting out an object in a resort town for 17 weeks a year, the income on average exceeds the costs and the investor fully covers the costs of maintenance and repayment of loan obligations.
And in the presence of a fireplace and a sauna in real estate, the rental potential increases in the off-season, thereby increasing the investment attractiveness of the segment.
Professionally investing in real estate in Germany with the Prime Germany Estate range of services is safe and easy.