This is confirmed by leading overseas property experts, Premier Property:-
“We have certainly seen a dramatic upturn in sales in Germany, especially in Berlin, over the past six or so months and the trend looks likely to continue for some time”
To appreciate the upsurge of interest in Berlin, it is important to understand the background to how Germany and its stunning capital have developed into one of the most desirable property markets in Europe. There are a number of factors which make Germany such an attractive proposition.
Why Germany?
Germany has the largest economy in Europe. Recent economic data indicate that business confidence in the market place is at an all time high. Such buoyancy is reflected in the heavy presence of foreign investors - over 22,000 foreign companies have a base in Germany, employing in excess of 2.1 million staff and generating trillions of Euros in turnover. Germany also:
· contributes an impressive 22% share to the Eurozone GDP and productivity has risen by more than 30% in the past 5 years.
· is the world’s second largest exporter.
· shares borders with every major economy in central Europe, providing instant access to both established markets in Western Europe and emerging markets in central and eastern Europe.
· has a highly sophisticated infrastructure. Its motorways, railways and state-of-the-art telecommunications network ensure that goods and IT services are delivered quickly and dependably.
· is the most innovative nation in Europe, more than 20% of European patents are held by Germans.
At the centre of this strong and still-developing nation, lies Berlin – its beautiful capital and largest city.
“Berlin is the most undervalued metropolis in western and central Europe in terms of property prices and rental prices, in relation to income, are substantially lower than in most other major cities. This leaves enormous scope for potential rent increases when the government restrictions on rent increases are relaxed between now and 2008.”
While much of Germany is looking forward to finally reaping the dividends of the reunification, West Berlin isn’t just looking forward to the benefits, but is enjoying them in the here and now. West Berlin is still, some 15 years after the reunification, the cultural, financial and social centre of the city. The shopping centres, theatres, cinemas and street cafes have lost none of their appeal even in the troubled times of Germany’s recent post-war recession.
Major international companies are largely located in the established business centre of the city where many residents from the German provinces come to work. The Tiergarten district, in the centre of Berlin, is the Federal Republic of Germany’s political heart and soul and the Bundestag (German Government) convenes just a hop, skip and jump away from the Brandenburg gate. The beautifully restored Viktoria-Luise Platz and the nearby Tiergarten Park remind you that the green-belt is never far away when you’re in the heart of Berlin.
Why Berlin?
· Property prices in Berlin are amongst the lowest of any capital city in Europe - from just 30,000 euros for a tenanted apartment in a good location - although this is already on the increase.
· Berlin has approximately 3,400,000 inhabitants, of which only 13% own their own home. This has led to a strong rental market and the rents in Berlin are very low compared to the national average.
· Rental demand in good locations continues to rise - there are approximately 1.87 million apartments and only 130,000 are vacant. This gives a vacancy rate of under 5%.
· Unoccupied apartments are an absolute rarity and rental agents for good locations often run waiting lists.
· Berlin has one of the highest turnovers for residential investments.
· Yields in Berlin can be up to 7.4% depending on location.
Premier says:
“City real estate in a major world capital at bargain prices. That is an opportunity that doesn’t come around every day.
“As the German economy recovers under the heavy political and monetary policy reforms led by a new government, serious investors are anticipating that this excellent value-for-money market, offering high rental yields, will also provide the base for explosive capital growth over the medium to long term duration.
Everyone wants to get in at the bottom of the market, and in Germany you can have the chance to do it in a country where the legality and security of your purchase is incomparable. Don’t expect these opportunities to last once the German consumer joins the trend towards property ownership and the true market forces begin to take effect.
The hottest property tips in the national and property press have been consistently pointing to 
Info & Services
