Glossary
Erbbaurecht
Heritable Building Right (Leasehold). You own the building but lease the land for 60–99 years against ground rent (Erbbauzins). Prices are lower, but financing is harder and value declines as the term shortens.
Common with churches, municipalities and foundations as landowners. Watch: remaining term (banks want their loan repaid well within it), Erbbauzins indexation clauses, and the compensation rule at expiry (commonly two-thirds of building value).
Erbbaurecht sits in a separate land-registry folio and transfer tax applies to it too. For investors, it's a yield play with an expiry date — model it explicitly.