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Taking Advantage Of Berlin Property Prices

Posted May 20, 2010 by Oleg Ludwig in Real Estate | No comments yet

Let’s face it; there must be a good reason why so many businessmen and multinational companies are investing money in the Berlin property market. Not only are Berlin property prices set to increase dramatically in the nearby future, but the city in general has become an increasingly popular European destination. This of course has in turned resulted in an increased demand for accommodation.

Berlin real estate investors are snatching up properties at a quickening pace given the low Berlin housing prices. The potential to earn, and earn big is there but the opportunities are quickly being swallowed up by investors. You see the cost of real estate in and around Berlin is steadily increasing, however when compared to most of Europe they are still quite low.

If you had any curiosity as to why Berlin’s property values fell so far all you need to do is consider the history of the city to understand. When the wall that separated East and West Berlin came down there was a lot of hope that the economy of the city and truthfully Germany as a whole would rise to the top in all of Europe. Everyone agreed that Berlin needed a great deal of investment dollars in order to develop the different sectors.

With so much interest in development, what occurred was a large construction boom. What many individuals may not have expected were the number of Berlin residents who preferred to seek their fortunes elsewhere, and took their money with them when they left. Soon thereafter there was a steep rise in unemployment which came together to drastically reduce Berlin property prices. As you can imagine wide spread unemployment coupled with a mass exodus of residents resulted in an over abundance of supply and little demand in Berlin real estate. By the year 2004 Berlin property had fallen by more than 30%. The sudden decline created nervous investors who began selling their holdings, which of course made the problem worse.

Interestingly enough, many other major European cities saw property prices climb while in Berlin they continued to fall. The result being that Berlin property prices are today perhaps the most affordable property prices in all of Europe. There’s also a very strange phenomena in Berlin, in that most locals prefer to rent property as opposed to buying. The strange thing is, the same can’t be said about the locals of other German cities. However, this does mean that there are plenty of opportunities for investors to rent their properties out.

With that said, it’s not only the natives who rent property. In fact, tourism in the city has exploded in recent years, and today one can see new hotels and apartment blocks going up everywhere. What is evident to investors is that Berlin property prices are climbing, and they’re climbing fast. One can only wander how long it will be before the Berlin property market is beyond the average person’s reach.

Berlin property prices with www.berlinproperty.co.uk. Also stop by our site where you can easily find out all about Property in Berlin.

Berlin Investment Property

Posted November 24, 2009 by Sofie Vincent in Real Estate | No comments yet

Investment property in Berlin is becoming popular, as a growing number of investors and prospective buyers are learning about the tremendous financial returns on Berlin investment property from this fast-rising venture.

In 2006, Germany’s economic growth rate was posted at 2.5 percent and has since earned a very large confidence level in the world market since being the highest it has been in 15 years. The economic revival Germany is going through is astounding, due to its high export market, as well as having a continuously rising housing price index, which really makes a phenomenal time to invest.

After many years of its economy being exceedingly sluggish mostly in the eastern parts and especially in Berlin there has been a solid and steady increase in the number of investors, this in turn has kept property prices pretty low. The outlook for mortgages in Germany is very encouraging by the government relaxing on its mortgaging policies, which cause many German citizens to their own homes rather than renting them.

The economy in Germany is growing at a steady rate of 2.5 percent throughout the year of 2007, house purchasing prices have been seen to increase slightly however. There are low costs and very affordable commercial properties and office spaces, there have been many British and European investors that have constantly poured money into the city of Berlin to build their businesses home offices and headquarters. After the Berlin wall had fell, the city began to race with others of Germanys advanced cities such as Munich or Frankfurt it their economic development. But a surprising occurrence has happened in Berlin, the price of property are more low in the capital than in all of the other minor cities of its country making Berlin investment property extremely attractive to investors.

At any rate, the areas identified as the choice properties are in the Mitte and Charlottenburg districts, where properties of high value and yields can be purchased as one of the best deals across the continent. In a few years time it is projected that property rates in these areas will dramatically increase as the demand increases several fold.

Very serious interests have been going into the Berlin investment property arena because of the huge returns it will deliver its investors. The development of Schlosspark-Carre for instance is held up by a ten-year rental agreement by a group of consorting bank, which makes it a great investment opportunity to behold over the entire continent. Another addition to that is complimented by a ten-year maintenance and modernizing plans, with free rental management properties offered up for sale.

In terms of population, which is the backbone of any structured economy, Berlin has a stable population of 3.4 million people, or almost the same population of three cities; Frankfurt, Munich, and Hamburg; combined, making it the largest populated city in the entire country.

In 2003 there were a little bit more than 1.8 million households in Berlin with each household made up of around 1.8 persons. Over the recent years, this statistic has grown steadily, and by the year 2025, the number of households in Berlin is expected to breach the 2 million household mark. Over an’-year period, this translates to an annual household increase of 8,400. This population expansion would trigger an exodus of big and small investors going into investment property in Berlin, and with the local residents having difficulty getting mortgages for their houses, many would resort to renting or leasing their homes.

The thrust of many foreign investors would be to purchase high yield properties in Berlin and then selling them to the local residents for a considerable profit, and Berlin has all the ingredients for a profitable property market venture.

The Advantages of buying Berlin investment properties

In contrast to other investment markets and centres around the world Berlins is a very liquid rental base market. Around 87% of Berlin’s population which comes to about three million some people have decided to rent out their homes instead of buying them for ownership. Near the end of the year in 2008 vacancy rates of Berlin’s rental properties including homes and apartments were extremely low at 3.4 percent. Many profitable options appeared to investors in purchasing “buy-to-let” apartments and other properties giving them a consistent and very profitable income based on renting.

Another fantastic advantage in the Berlin investment property industry is the clearness of information, which the German government give to its foreign investors. They give information in the likes of property prices, rental rates, returns on the investment, and sales information that will be given correctly and in a straight and decent manner so they may be informed to make the right decision for them.

Want to find out more about Berlin property #1, then visit the Berlin Property site on how to choose the best property in Berlin #2.