Known as the main financial capital of Germany, Frankfurt is beginning to attract overseas property investors as well.
The German city of Frankfurt is expected to become the greatest beneficiary of Brexit, with many international financial institutions opening offices there to keep a presence in the EU after the UK leaves the European Union.
As a result, Frankfurt has secured joint-second place in the Urban Land Institute and PwC’s Emerging Trends in Real Estate report for Europe in 2018. It is one of four German cities dominating this year’s top 10 for investment and development potential, beaten only by the German capital of Berlin.
Following Brexit Frankfurt saw €2.8 billion of real estate deals in the first six months of 2017 alone and is tipped to become the new buy to let hotspot, offering a compelling alternative to London with its well-established and growing finance sector, relatively stable political and economic environment and no capital gains tax for property investments.
Growth in the residential property market has been slowed by a lack of housing supply, but a surge in new residential projects is now remedying this.
Frankfurt is considered Germany’s truly international city, with many multinational companies and over half the population from an immigrant background (three in four among children).
The city is becoming even more internationalized following Brexit, as major financial groups such as Citigroup, Morgan Stanley, Nomura Holdings and Standard Chartered all announcing moves to Frankfurt, with others including Goldman Sachs and UBS rumoured to follow.
It is not all about financials with Frankfurt either. Families are well catered for with good schools and universities, while exceptional safety, healthcare and transport links offering convenient access throughout Germany, the rest of Europe and the world have led to the city securing seventh place in a worldwide quality of life survey.
A large student population helps ensure plentiful nightlife choices, from sipping cocktails in Salzhaus or enjoying the smooth sounds along Jazzgasse.
The imminent opening of the new Europaviertel (European Quarter) next year will further enhance the city, promising a shopping mall with feature restaurants and cafes, hair and beauty salons, fitness studios and more, as well as a subway station offering fast and direct connections around the city and further afield.
With an ever-increasing population and the imminent arrival of some of the world’s largest financial institutions, Frankfurt could indeed become the new buy to let hotspot of Europe, and British overseas property investors may wish to get in on the financial action.