property for sale
invest in berlin
Why Invest in Berlin?
Berlin is a city mentioned in the same breath as all the other great metropolitan cities of the world. It is both home and a home away-from-home for the world’s rich and famous. It is where different scenes and communities merge and come together. And it is one of the world’s most promising and exciting property markets.
Most of the markets of Western Europe are experiencing the end of their property growth cycles. However Germany, and particular Berlin are at the beginning of theirs. After the years of reconstruction following re-unification Germany is now entering a new growth period:
• Recent investment of €15 billion in private equity funds from Goldman Sachs, Soros and Blackstone has renewed confidence in German real estate (OPP Magazine, July 2006)
• Irish investors are likely to spend upwards of 1bn this year on German property, as they bank on that country's expected economic turnaround. Last year Germany represented 16% of all overseas property investment by Irish investors (Sunday Tribune, July 16th, 200&)
• Commercial real estate is also popular: The surge of Irish investment into German commercial property looks set to continue with further purchases completed in recent days. Davy has paid €141.3 million for a retail and office property in Hamburg, dubbed Spitaler Hof. The purchase price equates to a yield of 5.4 per cent and the building was bought from German property Fund DIFA. (Sunday Business Post, July 23rd, 2006)
Germany promises to offer investors are rare mix of ironclad investment security with the potential for speculative gain.
Property Prices in Berlin
Berlin is perhaps the best kept secret in overseas
real estate investment. While many buyers seek to follow the crowd into the
new ‘hot spot’ markets, most commentators and property experts
point to the capital cities of Central /Eastern Europe like Berlin.
Prices in Central Berlin currently are approximately 10% of those in Central
London for example. Berlin offers the same choice of properties one would
expect from a major capital, from off-plan investments to typical studio
and 1 bed apartments to new waterfront developments and luxury embassy district
properties, however at a fraction of the price.
Indicators point to a pick up in the German economy. As the economy picks up so will spending power and of course property prices. Berlin will always be a secure investment however now is the time to invest and take advantage these prices.
Security of Investment
As mentioned above Berlin offers investors the security of investment associated with a capital city but also potential in terms of capital growth.
- It is a Cosmopolitan City with similar characteristics to Dublin, London & Paris
- Constrant demand for rented accommodation from the local and ex-pat market
- Some of Europe’s best builders with bank guarantees on all payment received
- English speaking lawyers and rental Property Management
Companies
The Institutions are in Place
Berlin is not a new property market. The property market in Berlin has existed for generations. It is a property economy not based on potential but based on years of proven performance. As such all the institutions are in place to offer investors the necessary mortgage facilities along with essential legal assistance and pre-conveyance of property.
Locomotive of the European Economy
Germany has the highest GNP and the largest population of all of the countries of the European Union. (CIA World Factbook). Germany has traditionally been Europe’s economic leader and despite a sluggish economy in recent years the German economy is showing signs of recovery and will continue to lead the European economy into the future.
