Basic Information on the Housing Situation in Germany

Germany Housing Overview

Housing Market + Many areas are experiencing a decline in available apartments in comparison with demand + Rents keep rising in the major German markets and are on a high level + The rental market in major German cities is fast and very competitive + In many cities there is an increase in number of open viewings with many potential tenants at the same time + The majority of properties on the market are usually found on the Internet providing only basic information + Generally speaking the higher the budget the quicker it will be to source a property + Written documentation, i.e. the last three pay-slips and a voluntary self-disclosure with details on the future tenant including credit history is often required when applying for a property Challenges in Major German Destinations + Estate agents and landlords often receive more than 50 requests for viewing a property. In some of the larger cities, this number can be even considerably higher + Due to high number of viewing requests, landlords often do not answer the requests + Thus, many offers need to be checked and many landlords need to be contacted to get a few appointments + Search time and background research can be lengthy and extensive accordingly + Good properties are taken very quickly + Decision making is encouraged to be fast or immediate if you want the property + The property market is mostly German speaking; many landlords do not speak English + Viewings can be comparable to job interviews

Size and Furnishings + Unfurnished housing often comes without a fitted kitchen, built-in cabinets or even light- fixtures

Real Estate Agent/ Realtors and so called Orderer Principle + A multiple property listing system does not exist in Germany which means that estate agents will only make offers from their own listings + The German regulation in letting law called the “Orderer Principle” means that the person who assigns the real estate agent has to pay the commission fee + Therefore, estate agents of some properties can still charge an estate agent’s fee (2 months net rent + VAT)

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