Median price of 1-bed apartments in European cities (in €)
Source: Global Property Guide
Despite a tight rental market owing to limited supply, Berlin is still significantly cheaper than other European capitals like London, Paris or Amsterdam
Depreciation rate for residential builings (in %)
Generous tax credits, especially for the newest residential developments, mean that buy-to-let investors can essentially generate tax-free rental income
Fixed mortgage rates: USA v. UK v. Germany
Sources: Interhyp, Federal Reserve Bank of St. Louis, Bank of England
Attractive financing conditions are also available to non-residents, with 15-year fixed mortgages in Germany being cheaper than mortgages in the UK and in the US.
Purchase price:
358,500 € (*)
+ Transaction costs:
+ Built-in kitchen:
8,500 €
= Total initial investment:
399,265 €
Monthly rent (unfurnished except built-in kitchen):
1,400 €
Annual rental income:
16,800 €
Monthly expenses:
Annual expenses:
3,000 €
Net operating rental income:
13,800 €
Rental ROI before taxes:
3.4 %
Rental ROI after taxes:
3.4 %
ROI before taxes:
8.4 %
ROI after taxes:
8.4 %
*Ground floor new-build apartment in Berlin’s Friedrichshain district
**Including heating but excluding electricity as in Germany the latter is paid by the tenant
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