Dezember 21st, 2016
5 Best reasons to invest in Berlin Property
We wrote at the end of last year on this blog that 2016 would be an opportune time to invest in Berlin Property. And we were not the only ones! And now one year later ……….we agree and think the same about 2017!
1-Berlin – A World Leading Address
1-Berlin is simply unique, both within Europe and the world. This unique cosmopolitan city is by any criteria full of superlatives , be they historical, commercial or cultural – a winner . Berlin is simply the ‘leading-address’ where everyone wants to be.
2-Berlin Real Estate – a ‘no-brainer’!
Berlin Real Estate is often called a ‘no-brainer’ and rightfully so. The fundamentals underlying it are right and continue to be right in what can only be described as volatile world investment climate.
Buying Real Estate in Berlin is still, for the foreseeable future, a very good investment both durable and for all European and German comparisons, affordable.
3-Berlin’s economy continues to grow
Berlin’s economy continues to grow – the highest growth of all German states – and it’s new tech hub leads statistics in job growth. It has one of the fastest-growing ’startup‘ eco-systems in the world and received the most venture capital investment of any city in Europe.
Berliners by comparison enjoy a relatively low cost of living compared to other tech- hubs like Silicon Valley and London. Living costs are circa 40% percent higher in London than Berlin, and this reasonable cost of living is conductive to early-stage startups. Berlin commercial office space can also still be rented or leased for reasonable prices.
4-Berliners want to own and not rent their Apartments
It is being said that ‘Donald Trump will have a hard time making America great again if the bulk of Americans can’t afford to own a home’. Well in fact this is already being realized to a degree in Berlin.
There has been a 50% increase in the number of conversions from rental properties to owned apartments. The increase in such conversions in central Berlin districts like Kreuzberg, Mitte and Prenzlauer Berg were previously the exception, but are now the rule.
Berlin’s property market is slowly moving from domestic renters to buyers- there are now more apartments for sale than to rent.
5- The Time is right to buy Berlin Property!
A combination of a current German account surplus and concomitant wage growth, negative ‚bund‘ yields, dormant inflation, low interest rate policies – cheap money in fact – has primed demand for Berlin property both within Germany and worldwide.
BREXIT concerns are causing withdrawals from UK property funds and reinvestment in German and Berlin commercial real estate. China’s sovereign wealth fund CIC has recently made a large investment in German residential real estate, adding to a string of recent buys of Chinese groups in Europe’s largest economy.
These are just some of the trends which indicate that both the supply and demand sides of Berlin Real Estate are presently in balance and will continue to offer good yields for investors right into 2017.
While our main activity at Next-Estate Berlin, is selling our own portfolio of residential and commercial properties in Berlin -to both German and international buyers – we also facilitate local Berlin sellers to place their own properties.