A considerable number of tourists prefer a quiet, measured vacation to being in the midst of entertainment, amid attractions with millions of visitors. And when choosing a place for emigration, a calm, harmonious life is a decisive condition for them. The German town of Kassel is one such place. Regardless of the purpose of the trip, you need to find out in advance how much a rented property in Kassel costs, how much it will take to buy a home and what is the cost of living in the city.
The real estate market in Kassel and its features
The cost of housing depends on the region of the country and the size of the city, so prices in Kassel (Hesse, central Germany) are moderate. The city has about 200,000 inhabitants, a little by the standards of the country. The cost of living space is lower here than in large cities. Yet Kassel cannot be considered a periphery.
The state of Hesse is one of the most dynamically developing regions in Europe. The head office of WINGAS GmbH, the leader in the sale of oil and gas in the former Germany, is located in Kassel. The city plays an important role in German transport engineering. The leading carmakers of the country Volkswagenwerke AG, Daimler AG, MAN AG founded their enterprises here.
Kassel is located 160 km from Berlin and 190 km from Frankfurt am Main - Europe's largest international airport. The city is surrounded on all sides by forests and hills.
Almost 2/3 of Kassel's area is occupied by gardens and parks. The picturesque Fulda River flows through the city.
Kassel is an ancient city, but almost 90% of buildings were destroyed during the war. Large-scale construction began only in the 1950s, and the city's most dynamic growth occurred in recent decades. This means that basically all the facilities were built taking into account modern technologies, from new materials. Despite the military losses, many architectural monuments of various eras have survived in the city.
The city consists of 23 administrative districts. Popular among the residents of Kassel are the cozy, respectable Felmar district, as well as the quiet and green Fasanenhof, located near the center.
Apartments in the North Holland area are quite cheap, but local residents are not quite satisfied with the level of cleanliness, and besides, they complain about unreasonably high utility bills. Brückenhof is not favored by immigrants from the CIS countries, the crime rate in it is higher than in other regions.
Rent price
Traditionally, Germans prefer to rent housing - according to statistics, from 40 to 60% of the country's citizens live in rented apartments. In Kassel, about 20% of the salary is spent on renting an apartment; the average earnings of city dwellers after taxes is 2,250 euros.
Although rental prices in Kassel have increased slightly in recent years, they remain low compared to similarly priced cities in other European Union countries. This is due to the government's policy to limit the growth of rent: if the landlord sets the rental price 20% higher than the average price for a property in this category, he will have to pay a fine.
Renting a one-bedroom apartment in the city center will cost 350-450 euros. On the outskirts, you can find a similar option for a price of 200 euros.
For a three-bedroom apartment in the city center, tenants ask for 750-1,300 euros, in less prestigious areas - about 450 euros. When choosing a rental offer, check if the owner has included utility bills in the price.
Since a large number of Germans are looking to buy real estate for income, finding affordable housing is not difficult, especially in the case of long-term rentals. There is even a term "profitable real estate". This is the name given to apartment complexes purchased for rent.
For example, an apartment building with 38 apartments in the state of Hesse will cost about 2.5 million euros, its yield will be 7-8% per annum.
Housing in Kassel (especially apartments) is easy to rent, as the rental market in this city is very developed. To do this, you do not have to live in the country, intermediary agencies are ready to take all the trouble of renting out housing on themselves.
Real estate purchase prices
If finances allow, you can invest in your own home or commercial real estate. It should be borne in mind that, although Germany does not restrict the ability of foreigners to acquire real estate, the transaction will not give the right to obtain a residence permit.
One-room apartment in Wesertore (central part of the city) will cost 28,000 € for 19m2, in the Nord Holland area two-room apartments cost 47,500 € (42m2), in the prestigious Fasanenhof - 75,000 € for 37m2... "Treshka" with an area of 50-59 m2 in the districts of Nord Holland or Süd sold for 80,000 euros. In the Mitte area, the object is 85 m2 costs 95,000 euros. For a small house (140 m2) in Bettenhausen will have to pay a quarter of a million euros.
For apartments on the outskirts of the city with one room, sellers ask for 32,000 € (Oberzweren district). For a two-room apartment with an area of 24m2 in approximately the same area, the buyer will pay € 33,500, for a duplex - € 41,500 (area 31.6 m2).
Although Bad Wilhelmshohe is located on the western outskirts, a 30-meter "one-room" apartment in an old building will cost at least 75,000 €. The cost of a house with an area of 170 m2 in Oberzweren will be about 350,000 €. A similar object in the Brasselsberg area costs 100,000-150,000 euros more.
Some buyers purchase property for commercial purposes, such as furnishing a restaurant, bar or cafe. Small warehouse (154 m2) in the district of Garleshausen will cost 60,000 €.
When buying an apartment, you need to remember about additional costs:
- the sale of real estate is taxed for the buyer. The tax rate depends on the federal state. In Hesse, it is 5% of the value of the object;
- annual tax on ownership of real estate (0.98–2.84% of its assessed value). For the calculation, the following formula is used: the assessed value of the property X 0.35% (federal base rate) X the coefficient approved for the state of Hesse. This should be taken into account when choosing a status object, because then you will have to pay 2.5–3.5% of its cost annually;
- services of a real estate agency, notary and so on.
In Kassel, you can buy land for the construction of a cottage or villa. So, in the Bettenhausen district, a building plot with an area of 850 m2 will cost 140,000 euros. Building plots in Vorderer Westen are more expensive - 370,000 € for 620 m2... Taking into account the high cost of building materials and works, it is more profitable to choose a ready-made object.
To finally decide whether you want to settle in this city, it is advisable to rent an apartment for several months and only then buy housing in the area you like.
Cost of living in Kassel
Housing costs are not all that a traveler or migrant usually prepares for. Another item of monthly expenses is groceries, travel expenses, clothing and other necessary items.
| Product / Service | Average cost (€) | Price range (€) |
|---|---|---|
| Lunch at an inexpensive restaurant | 10 | 7–12 |
| Three course lunch at a mid-range restaurant | 40 | 30–55 |
| Local beer (0.5 l) | 3.25 | 1,50–4,00 |
| Water (1.5 L) | 0.27 | 0,19–0,70 |
| Milk (1 l) | 0.64 | 0,42–0,75 |
| Bread (500 g) | 1.07 | 0,55–1,99 |
| Local cheese (1 kg) | 6.38 | 3–10 |
| Chicken fillet (1 kg) | 6.33 | 4,00–9,00 |
| Beef (1 kg) | 9 | 5,40–12,50 |
| Apples (1 kg) | 2.03 | 0,99–2,50 |
| Tomatoes | 2.48 | 0,75–3,06 |
| Potatoes (1 kg) | 1.01 | 0,40–2,00 |
| Local public transport ticket | 2.8 | 2,60–2,90 |
| Taxi (1 km) | 2 | 1,00–2,00 |
| Basic utility costs (electricity, heating, air conditioning, water, garbage disposal) for an apartment of 85 m 2 | 220.85 | 51,60-340 |
| Fixed annual interest rate on mortgage (20 years) | 1.85 | 1,40–2,00 |
Perhaps, at first glance, the local prices for goods or services (especially utilities) will seem too high to someone, but the average salary allows one to provide itself with everything you need.
Conclusion
In recent years, experts have noted some stagnation in the Kassel real estate market. For comparison:
- building plot in a good area of Frankfurt will cost 1,000 euros per m22, in the suburbs of Kassel - 160 euros per m22;
- apartment on the secondary market in Frankfurt - 3,800 euros per square meter, in Kassel - only 1,300 euros;
- commercial real estate for rent in a good area of Frankfurt - about 260 euros per m22, in the suburbs of Kassel - an average of 11 euros.
The difference is explained by the more rapid growth rate of the population of large cities, and experts predict the continuation of this trend. Experts do not foresee the appearance of a "bubble" in the Kassel real estate market and declare economic stability.
Kassel is an interesting destination for real estate investment. On the one hand, it is a developed city with a large number of businesses. This allows us to predict a gradual increase in the value of the purchased property.
With an amount of 30,000 € or more, you can find a cozy apartment and enjoy the benefits of living in a wealthy country. Another option is to rent a home and invest the available funds in a profitable business.
