Investment Property in Germany

Tourism

Rising visitor numbers

Tourism is an important revenue generator for Germany, worth $31 billion in 2006 (up approximately 3% from the previous year) when some 23 million foreign visitors (also up by around 3%) entered the country, including an estimated 2 million there specifically for the World Cup. The country’s central location means it is also a transit location for those travelling through Europe who often choose to spend extra days in the country to enjoy some of the local culture. A number of large events, such as the German F1 Grand Prix, international football matches, operatic and film festivals, among others, also attract significant numbers of (often high-spending) foreign visitors.

Not reliant on tourism

The strength of Germany’s property market is not reliant on its tourism industry in the same way that some other country’s markets are. The appeal for most investors is in other factors, such as the investment potential stemming from the country’s large population - who’s traditional preference of renting over buying property is tipped to be turning over the coming few years - along with increasing foreign investment.

Benefits of tourism growth

However, the country’s expanding tourism industry is nevertheless a positive development for Germany’s property market, since it directly contributes to the country’s economy, opens up the country for further potential property buyers, and gives some property owners the option of renting their properties to holidaymakers.

Culture and history

While Germany has a number of coastal resorts, some of them very popular, its location and climate mean it cannot compete with Mediterranean countries as a summer “sun, sea and sand” destination. Instead, tourism to Germany is primarily conducted with culture and history in mind, with a number of ski resorts attracting visitors during the winter (though these do not attract as many visitors as the higher resorts in France or Switzerland).

Sense of history

The war itself is of great historical interest and many visitors to the country from across the globe come either to revisit the sites over which they battled or, more commonly now, to see where their parents or grandparents fought. Understandably, travellers from Britain, the USA, Canada and other Allied nations tend to visit western Germany for this purpose, while Russians and other easterners tend to head to the former East Germany.