Investment Property in Magdeburg

Invest in Real Estate in Magdeburg

Magdeburg 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 Magdeburg .

Search Map of Magdeburg Investment Real Estate

Magdeburg (German: [ˈmakdəbʊʁk] (listen); Low Saxon: Meideborg [ˈmaˑɪdebɔɐ̯x]) is the capital and second-largest city of the German state Saxony-Anhalt. The city is situated at the Elbe river.

Otto I, the first Holy Roman Emperor and founder of the Archdiocese of Magdeburg, was buried in the city’s cathedral after his death. Magdeburg’s version of German town law, known as Magdeburg rights, spread throughout Central and Eastern Europe. In the Late Middle Ages, Magdeburg was one of the largest and most prosperous German cities and a notable member of the Hanseatic League. One of the most notable people from the city is Otto von Guericke, famous for his experiments with the Magdeburg hemispheres.

Magdeburg has been destroyed twice in its history. The Catholic League sacked Magdeburg in 1631, resulting in the death of 25,000 non-combatants, the largest loss of the Thirty Years’ War. During the World War II the Allies bombed the city in 1945 and destroying much of it. After World War II the city belonged to the German Democratic Republic from 1949 to 1990. Since then many new construction projects were implemented and old buildings have been restored.

In 2005 Magdeburg celebrated its 1.200th anniversary.

Magdeburg is situated on Autobahn 2 and Autobahn 14, and hence is at the connection point of the East (Berlin and beyond) with the West of Europe, as well as the North and South of Germany. For the modern city, the most significant industries are: the Machine industry, Healthcare industry, Mechanical engineering, Environmental technology, Circular economy, Logistics, Culture industry, Wood industry and the Information and communications technology.

The city is the location of two universities, the Otto von Guericke University Magdeburg and the Magdeburg-Stendal University of Applied Sciences.

The financial stability of Magdeburg 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 Magdeburg

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

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

Set goals based on how much rental yield will be required and the local rental yield rates in Magdeburg and be prepared to change your initial outlook.
Thoroughly research the Magdeburg location with a special emphasis on fringe areas outside the main Magdeburg metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Magdeburg.
Ensure that your target investment property in Magdeburg 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 with local knowledge and experience of property legislation will give you the best chance of success.

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

Flipping Investment Property in Magdeburg

Flipping property in Magdeburg

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

The Flipping Strategy in Magdeburg

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

What is distressed Magdeburg property:

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

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

Calculate profit that you make from Magdeburg investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Magdeburg 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 Magdeburg use a minimum profit value of 22% when looking at potential Magdeburg projects.

The reason for this is because there are lots that can go wrong in Magdeburg property flipping and working on a potential margin of 22% should still leave a good margin of error.

Invest through a Fund in Magdeburg

Property Secured Investments is a Private Equity fund that invests in Magdeburg and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Magdeburg

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

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