Matthias Helzel has spent two decades helping clients buy and sell castles and palaces. The trained building construction technician, who describes himself as a castle enthusiast, says the market is driven by strong personal attachment as well as practical considerations.
The properties that attract the most interest are the traditional image of a castle: high walls and a tall tower, often a keep. Buildings created during the 19th- and early 20th-century Historicist period can also sell well, even when their medieval appearance is more decorative than historically accurate. Helzel says buyers are often drawn to the familiar fairytale image of a castle with a tower.
The distinction between a castle and a palace is not always Clear-cut, he says. Historically, castles had a more military role and palaces were associated more with representation, but the terms have often overlapped. Nor is every castle or palace a listed monument. Where heritage protection applies, it can be part of a property's appeal, and eligible restoration work may qualify for tax relief or funding. Helzel advises prospective buyers to work with architects and tradespeople experienced in historic buildings and says heritage authorities are often helpful.
Prices depend heavily on location. In eastern Germany, away from major cities, a property with around 500 square metres of living space and several hectares of land may be available for about €500,000. Near major urban areas, prices can reach seven or even eight figures. Buyers also need to budget for restoration and ongoing maintenance: most properties Helzel handles are not ready to move into, and all require care.
The market can favour buyers in terms of prices, Helzel says, although the supply has remained broadly steady over the years. Competition between buyers is uncommon. Sellers may give preference to someone they believe will take good care of the building rather than simply accepting the highest offer.
Buyers range from hands-on enthusiasts prepared to do much of the work themselves to wealthy people seeking a retreat. Some owners look for a business use, such as a hotel, event venue, holiday accommodation or restaurant. Converting a historic property into housing may also be possible, but heritage rules can limit changes to important spaces.
Financing is assessed individually, with lenders considering the buyer's equity, the building's condition, its proposed use and the applicant's financial standing. Helzel recommends discussing funding early. He also urges buyers to examine the property's history, condition, paperwork and legal obligations before committing, since documentation can vary significantly between buildings.
For sellers, the decision can be emotional. Some have owned their property for decades and decide to sell when maintaining it becomes difficult, particularly if younger family members do not want to take it on. Helzel says some viewings take place without the broker, allowing sellers and prospective buyers to speak directly and form a personal connection.
Sources: Handelsblatt.