With over three years experience of the German residential property market either as buyers, asset managers, property brokers or private client advisors, we at RealReturns are uniquely placed to provide accurate, unbiased and helpful information about the German and in particular the Berlin residential property market.
We highlight below some of the key points to consider when considering a property purchase.
Property Prices are low in Berlin
We can offer fully let and managed city centre studio apartments from €50,000 and one bed apartments from €65,000. Considering Berlin is the capital of the EU’s largest economy it is incredible that apartments are so reasonably priced.
Berlin is Germany’s Capital
Berlin, Germany’s capital, with a population of 3.4 million people is larger (by population)to that of Munich, Frankfurt and Hamburg combined. Since political power was returned to Berlin federal and local governments have had significant success in attracting foreign investment and job creation. Currently over 56 multinational organisations are headquartered in Berlin.
The German Government has made a significant commitment to Berlin
Since reunification successive German Governments have been committed to enhancing Berlin’s claims to be one of the world’s leading cities. In the last fifteen years over €75 Billion has been spent on infrastructural improvements with a further €12 Billion having been committed recently.
Property in Berlin is undervalued compared to other German Cities.
The typical price of property in Berlin is almost half the price of a similar property in Frankfurt and a staggering third of the price of a Munich property. As each city has similar GDP’s, Berlin is far more affordable than its other German cities.
Property in Berlin is undervalued compared to other EU Capitals.
Similar Properties in London are five times more expensive and properties in Paris are four times more expensive than their Berlin counterparts. Rental yields too are slightly higher.
Berlin is a safe and Secure Rental Market
Unlike other investment markets the Berlin market is a very liquid rental market. Nearly 87% of its population an astounding 2.95 million people choose rent property and not own property. The centre of the city boasts very low vacancy rates in Q3 2008 were 3.4%. Therefore Irish and UK investors provided they have chosen the right location, can therefore "almost" be assured that their property will be let and consistently generating rental income.
Berlin offers investors an easy environment to purchase.
As the German authorities compile lots of data concerning property prices, rent costs, yields and sales it is easy for an investor to find valid, accurate and up to date information with which to make an informed decision about purchasing or not. This is in stark contrast to other Investment Hotspots where information is unclear and mostly inaccurate.
Berlin provides Investors with an excellent "After sales" environment.
Once purchased an investment property becomes an "asset" and like all "assets" it must be protected and managed so it can retain its value. As there are a high number of tenants in Berlin, it goes without saying that there are a large number of skilled property managers and letting agents. These professionals have to stick by rigid government guidelines and in most cases can be relied upon to handle the letting and management of a rental property in a reliable and efficient manner.
Feel free to look at the properties we are now selling or to find out more about buying a property in Berlin by viewing more pages of our website or by speaking directly to us.
If you are looking for more information about purchasing residential property in Berlin why not check out some of the following independent websites:
Berlin - The official Berlin website
Berlin Partner - Doing business in Berlin
ExBerliner - Online magazine for English speakers in Berlin
Berlin Mietspiegel - Comprehensive database of rents in Berlin
Thomas Daily - Daily German property news stories