März 15th, 2017

Austrian Real Estate Firms Pour Into Berlin

„International real estate developers have descended on Berlin over the past decade as the city’s property prices have risen sharply. Home values are up 49% the past five years, elevating the German capital to one of the fastest appreciating markets in Europe. “ So wrote  Troy McMullen in an article for the on-line edition of Forbes the American business magazine entitled ‚Austrian Real Estate Firms Pour Into Berlin‘.

The article writes that numerous large Vienna-based firms have concentrated their financial resources to Germany over the last couple of years with much of it ending up in Berlin..

Prices are a much lower than in London and Paris and the city is gaining population which makes it attractive not only to foreign buyers but increasingly also to local Berliners who want to own their own apartment or home.

Property values have risen fastest in those long neglected areas of the city, in former East Berlin. Areas like Mitte, Friedrichshain, Prenzlauer Berg, Kreuzberg have seen increased investment in both completely renovated buildings which exist alongside new condominiums and penthouse apartments.

And all of this inside Berlin’s excellent environmental and ‘people friendly’ areas, with parks, bicycle paths, shopping streets, fitness centers, and with a public transport system envied by many other EU cities.

We have reported before on this blog about Chinese investors who have ‘discovered’ the great opportunities which Berlin offers to property buyers. And we have reported about Middle Eastern investors who have spoken with their wallets and proved what we have been saying all along, namely that the real-estate prices have risen nearly 50% over the last decade making the German capital one of the fastest appreciating property markets in Europe.

Ties with Germany’s neighbour Austria are based on a common language and culture and a centuries-long shared history.  Austria and Germany have a somewhat tainted historical relationship, like Ireland/UK, Canada/USA, Sweden/Norway and Spain/Portugal.

One could call it a love/hate relationship but that would be making it far too ominous – in actual fact the relationship today is better than it has ever been.

Germany is Austria’s principal trading partner – economic ties between the two countries are extremely close even compared with other EU countries. 

Austrians know a good deal when they see one and their interest and investment in German and Berlin property is based on the fact that they feel Berlin is both familiar and a safe long-term investment.