Investment Property in Cologne

Investment Real Estate in Cologne

Cologne property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Cologne .

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Search Map of Cologne Investment Real Estate

Cologne ( kə-LOHN; German: Köln [kœln] (listen); Kölsch: Kölle [ˈkœlə] (listen)) is the largest city of Germany’s most populous state of North Rhine-Westphalia (NRW) and the fourth-most populous city in Germany. With 3.6 million people in the urban region and 1.1 million inhabitants within its city proper, Cologne is the largest city on the river Rhine and also the most populous city of both the Rhine-Ruhr Metropolitan Region and the Rhineland. Centered on the left bank of the Rhine, Cologne is about 35 kilometres (22 mi) southeast of NRW’s state capital Düsseldorf and 25 kilometres (16 mi) northwest of Bonn. It is classified as a world city by GaWC.

The city’s medieval Catholic Cologne Cathedral (Kölner Dom) is a globally recognized landmark and one of the most visited sights and pilgrimage destinations in Europe. There are many institutions of higher education in the city, most notably the University of Cologne, one of Europe’s oldest and largest universities; the Technical University of Cologne, Germany’s largest university of applied sciences; and the German Sport University Cologne. It hosts three Max Planck science institutes and is a major research hub for the aerospace industry, with the German Aerospace Center and the European Astronaut Centre headquarters. It also has significant chemical and automobile industry. Cologne Bonn Airport is a regional hub, the main airport for the region is Düsseldorf Airport.

Cologne was founded and established in Germanic Ubii territory in the 1st century AD as the Roman Colonia Agrippina, hence its name (Augusta Ubiorum was also used). “Cologne”, the French version of the city’s name, has become standard in English as well. Cologne functioned as the capital of the Roman province of Germania Inferior and as the headquarters of the Roman military in the region until occupied by the Franks in 462. During the Middle Ages the city flourished as being located on one of the most important major trade routes between east and western Europe (including the Brabant Road, Via Regia and Publica). Cologne was a free imperial city of the Holy Roman Empire and one of the major members of the trade union Hanseatic League. It was one of the largest European cities in medieval and renaissance times.

Prior to World War II, the city had undergone occupations by the French (1794-1815) and the British (1918–1926), and was part of Prussia since 1815. Cologne was one of the most heavily bombed cities in Germany during World War II. The bombing reduced the population by 95%, mainly due to evacuation, and destroyed almost the entire millennia-old city centre. With restoring only major historic landmarks like city gates and churches (31 of them being Romanesque), the post-war rebuilding has resulted in a very mixed cityscape.

Cologne is a major cultural centre for the Rhineland; it hosts more than 30 museums and hundreds of galleries. Exhibitions range from local ancient Roman archeological sites to contemporary graphics and sculpture. The Cologne Trade Fair hosts a number of trade shows such as Art Cologne, imm Cologne, Photokina and Gamescom, a leading video games fair.

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The financial stability of Cologne has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Cologne

Renting out your Cologne buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Cologne are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Cologne and be prepared to change your initial outlook.
Thoroughly research the Cologne location with a special emphasis on fringe areas outside the main Cologne metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Cologne.
Ensure that your target investment property in Cologne appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Cologne properties yourself is an easy option, but are these savings justifiable when you run into Cologne red tape? Physis Realty Cologne office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Cologne buy-to-rent sector.

With our expert guidance, investing in Cologne provides the secure knowledge that your money is working harder than it would in a local Cologne bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Cologne, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Cologne property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Cologne

Flipping property in Cologne

Flipping property is when we advise clients to buy a Cologne property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Cologne market has a time to react to the renovation.

The Flipping Strategy in Cologne

Investment property flipping in Cologne is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Cologne real estate investments are sometimes referred to by professionals as ‘distressed’ Cologne real estate.

What is distressed Cologne property:

Cologne property in need of renovation
Cologne real estate with a change of purpose and use
Oversold Cologne property
Bank repossessions in Cologne

Put simply, long term investors in Cologne purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Cologne investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Cologne property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Cologne use a minimum profit value of 22% when looking at potential Cologne projects. The reason for this is because there are lots that can go wrong in Cologne property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Cologne

For luxury property investors hoping to add a superb property in Cologne to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Cologne, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Cologne should be entrusted to only the highest-quality agency.

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