Condominium (Eigentumswohnung)

A condo (Eigentumswohnung) is an individually owned unit within a multi-unit building. It's the most common entry point for real estate investors in Germany due to lower capital requirements.

How Condos Work in Germany

When you buy a condo, you own:

• Your unit (Sondereigentum): The interior space you can modify
• Share of common property (Gemeinschaftseigentum): Building exterior, roof, stairs, land

HOA and Collective Decision-Making

All owners form an Eigentümergemeinschaft (HOA) that:

• Manages common areas and building maintenance
• Collects monthly fees (Hausgeld) for reserves and repairs
• Makes decisions about major renovations via owner meetings
• Hires property managers (Hausverwaltung) for administration

Real Example: Condo Purchase

Advantages of Condos

• Lower entry cost: Start with €100k-200k vs. €400k+ for houses
• Less maintenance burden: HOA handles exterior, roof, common areas
• Prime locations: Easier to find condos in city centers
• Professional management: Hausverwaltung handles day-to-day issues

Disadvantages vs. Multi-Family

• HOA dependency: Can't make exterior changes without approval
• Shared decision-making: Major repairs require owner votes
• Hausgeld can increase: Unexpected assessments for big repairs
• Lower yield typically: Condos often have lower rental yields than multi-family

What to Check Before Buying