Investment Property in Frankfurt

Investment Real Estate in Frankfurt

Frankfurt 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 Frankfurt .

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Search Map of Frankfurt Investment Real Estate

Frankfurt, officially Frankfurt am Main (German: [ˈfʁaŋkfʊʁt ʔam ˈmaɪn] (listen); Hessian: Frangford am Maa, lit. “Frank ford on the Main”), is the most populous city in the German state of Hesse. Its 763,380 inhabitants as of 31 December 2019 make it the fifth-most populous city in Germany. On the River Main (a tributary of the Rhine), it forms a continuous conurbation with the neighboring city of Offenbach am Main and its urban area has a population of 2.3 million. The city is the heart of the larger Rhine-Main Metropolitan Region, which has a population of 5.5 million and is Germany’s second-largest metropolitan region after the Rhine-Ruhr Region. Frankfurt’s central business district lies about 90 km (56 mi) northwest of the geographic center of the EU at Gadheim, Lower Franconia. Like France and Franconia, the city is named after the Franks. Frankfurt is the largest city in the Rhine Franconian dialect area.

Frankfurt was a city state, the Free City of Frankfurt, for nearly five centuries, and was one of the most important cities of the Holy Roman Empire, as a site of imperial coronations; it lost its sovereignty upon the collapse of the empire in 1806, regained it in 1815 and then lost it again in 1866, when it was annexed (though neutral) by the Kingdom of Prussia. It has been part of the state of Hesse since 1945. Frankfurt is culturally, ethnically and religiously diverse, with half of its population, and a majority of its young people, having a migrant background. A quarter of the population consists of foreign nationals, including many expatriates.

Frankfurt is a global hub for commerce, culture, education, tourism and transportation, and rated as an “alpha world city” according to GaWC. It is the site of many global and European corporate headquarters. In addition, Frankfurt Airport is the busiest in Germany, one of the busiest in both Europe and the world, the airport with the most direct routes in the world, and the primary hub for Lufthansa, the national airline of Germany. Frankfurt is one of the major financial centers of the European continent, with the headquarters of the European Central Bank, Deutsche Bundesbank, Frankfurt Stock Exchange, Deutsche Bank, DZ Bank, KfW, Commerzbank, several cloud and fintech startups and other institutes. Automotive, technology and research, services, consulting, media and creative industries complement the economic base. Frankfurt’s DE-CIX is the world’s largest internet exchange point. Messe Frankfurt is one of the world’s largest trade fairs. Major fairs include the Music Fair and the Frankfurt Book Fair, the world’s largest book fair.

Frankfurt is home to influential educational institutions, including the Goethe University, the UAS, the FUMPA and graduate schools like the Frankfurt School of Finance & Management. Its renowned cultural venues include the concert hall Alte Oper, continental Europe’s largest English theatre and many museums (e.g. the Museumsufer ensemble with Städel and Liebieghaus, Senckenberg Natural Museum, Goethe House and the Schirn art venue at the old town). Frankfurt’s skyline is shaped by some of Europe’s tallest skyscrapers. The city is also characterised by various green areas and parks, including the central Wallanlagen, the City Forest, two major botanical gardens (the Palmengarten and the University’s Botanical Garden) and the Frankfurt Zoo. In sports, the city is known as the home of the top-tier football club Eintracht Frankfurt, the Löwen Frankfurt ice hockey team, the basketball club Frankfurt Skyliners, the Frankfurt Marathon and the venue of Ironman Germany. It was also one of the host cities of the 1974 and 2006 FIFA World Cups.

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The financial stability of Frankfurt 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 Frankfurt

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

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

Set goals based on how much rental yield will be required and the local rental yield rates in Frankfurt and be prepared to change your initial outlook.
Thoroughly research the Frankfurt location with a special emphasis on fringe areas outside the main Frankfurt metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Frankfurt.
Ensure that your target investment property in Frankfurt 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 Frankfurt properties yourself is an easy option, but are these savings justifiable when you run into Frankfurt red tape? Physis Realty Frankfurt office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Frankfurt buy-to-rent sector.

With our expert guidance, investing in Frankfurt provides the secure knowledge that your money is working harder than it would in a local Frankfurt 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 Frankfurt, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Frankfurt property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Frankfurt

Flipping property in Frankfurt

Flipping property is when we advise clients to buy a Frankfurt 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 Frankfurt market has a time to react to the renovation.

The Flipping Strategy in Frankfurt

Investment property flipping in Frankfurt 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 Frankfurt real estate investments are sometimes referred to by professionals as ‘distressed’ Frankfurt real estate.

What is distressed Frankfurt property:

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

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

Calculate profit that you make from Frankfurt investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

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

Luxury Property in Frankfurt

For luxury property investors hoping to add a superb property in Frankfurt 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 Frankfurt, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Frankfurt should be entrusted to only the highest-quality agency.

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