German rental market offers opportunities to investors

08 October 2007
The money it costs to buy a property in Germany is boosting the country's rental market, according to an expert.

Chief analyst of Property Secrets Simon Tweddle said that German tenants spent a long time saving up to buy their own home.

Part of the issue, he suggested, was that there was a lack of confidence in house-buying so people tended to rent for a long time.

Figures published in the bulletin of housing statistics for Europe and North America 2006 revealed that 42 per cent of properties in Germany are owned and 58 per cent are rented.

In the UK, 70 per cent of properties are owned and 30 per cent are rented.

"There's a very big rental market in Germany full stop," said Mr Tweddle.

"Most people tend to rent because it's actually cheaper to rent than it is to buy. It's not just for students, but everybody."

He added that ten years of price deflation was also a contributing factor.

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