Good points all to consider Martin. But I wonder if the "Kapitalanlage" provision also applies to commercial property...

I wouldn't think that the population decrease will be an issue in Konstanz. As a general rule (in Europe), people tend to move from the country into the cities, and from the northern to the southern climes.

People have gotten so used to stable (or dropping) prices in this country that few now can ever imagine a possible medium term (5-10 years) capital gain on their purchase. Germany has some catchup to do compared to the countries in its immediate vicinity so, in light of the better economic figues, I think that maybe prices could indeed start to move higher finally. In the meantime the reasonable yields compared to other markets do allow one to be patient.

All my best and many thanks for your answer. Neustria