There are no explicit restrictons for foreigners to buy property in Germany. The biggest hurdles I would imagine are:
- You need to have either a permanent address in Germany (“ladungsfähige Anschrift”, where legal letters are sent to) or a legal representative that handles official correspondence. I guess (though I am not sure) that legally you cannot at this time have a permanent address as the student visa does not grant permanent residence.
- If you need a credit to finance the purchase, it can be tricky as a foreigner if you have no credit history in Germany, and banks may demand a risk premium
- When you buy property, all the documentation will be in german, and the notary is legally obliged to make sure you understand what you sign. He or she may refuse to allow you to sign the contract if he/she has the impression your German isn’t good enough.
The process is simple enough. The seller provides a contract offer to the notary office,who then forward it to you. After a minimum waiting period of 14 das you schedule an appointment with the notary, who reads the who contract to you before all parties sign the contract. All the paperwork is forwarded to the Finanzamt and Grundbuchamt, you pay some taxes and fees, and finally the notary tells you when you are and lowed to pay the seller.