- Property by Athena
- Jan 18, 2016
- 4 min read
Berlin is not only a vibrant and dynamic metropolis but it is now home of the German governments’ head offices not to mention a full set of embassies and international agencies.
In the first three quarters of 2014, Berlin was the third most active city in Europe in terms of real estate transactions (behind London and Paris) with volume of 3 billion Euros and looks set to have an increased transaction activity in 2015.
According to the latest edition of the yearly survey Emerging Trends in Real Estate Europe for 2015, published by Price Waterhouse Coopers and the Urban Land Institute, Berlin has now been declared as the No 1 city in Europe in terms of investment prospects. International and local investors are swarming to the German capital, luredby what they consider relatively inexpensive assets and development opportunities. As an international real estate expert stated “Berlin has excellent fundamentals and an extremely low level of pricing.” Many international investors have started pouring capital into the city.
Berlin according to the survey Berlin has climbed to the top spot (as best place to invest in Europe in 2015), because it is widely perceived as being more liquid than Munich and considerably cheaper than its fellow “Big 7” cities.The residential sector is popular, in light of the city’s young population and its growing reputation as a European media hub.
As a major investor pointed out “The pricing of residential rents has gone up significantly, but compared to any other major city in the EU, Berlin is cheap.”
Factors favouring Berlin’s economic growth include:
Expected economic growth with the arrival or expansion of many large, employment-generating companies (IBM, Nokia, Sony, Daimler Benz, Coca Cola) especially in the media industry (Universal Music, MTV Europe) as well as innovative technology firms (Biotech Parks in Adlershof).
Berlin became the third most visited city in Europe
Berlin plays a central role in the European Union of 28 Nations
The city enjoys a reputation as a cultural and artistic trendsetter
The demographic development and variety of the city’s population
What Makes Berlin Attractive?
Capital of Europe’s strongest economy
Huge multi-sector investment from some of the world’s biggest venture capital funds
Secure legal environment
Berlin is the government and educational center of Germany
Major international and local companies are relocating to Berlin
Demand for residential accommodation hugely outstrips supply
Attractive rental yields and high capital appreciation potential.Rents in Berlin have been rising steadily, especially in recently modernised buildings,but it’s not only rents that are rising. House prices in certain areas of the city have doubled in the last yearEasy financing with low interest rates
Berlin real estate appears as one of the hottest areas for property investments in all recent market research and studies by real estate professionals and financial institutions such as PWC, Urban Land Institute, PNB Paribas, CBRE Richard Ellis, GSW, KPMG, Colliers.
Vacancies in Berlin are at the lowest point in the last 15 years
Unemployment in Berlin is at its lowest point in the last 15 years
Berlin has Europe’s lowest proportion of residential owner occupation. Only 16.2% of Berliners own their house, the rest are renting whilst Germany’s average is 43%.
Berlin’s population has been increasing since 2005 and this trend looks set to continue
Housing vacancy rate is expected be at 1% by 2016. Berlin’s Senate predicts a growth of up to 130,000 new households between now and 2020.(Source: Dr. Zittelmann – Residential Investment Market Report)
Low vacancy rates especially in central locations have attracted various investors in Berlin’s real estate (REITs, property companies and other institutional investors) from France, USA, Sweden and other countries.In the latest edition of “Emerging Trends in Real Estate 2015” conducted by PWC and the Urban Land Institute, Berlin ranks as the top city for investment out of 28 cities listed.
Berlin is attracting a lot of inward investment and re-location of government offices and businesses from other major cities in Germany (example: German Secret Police Central Offices (BND) moving to Berlin from Bavaria in 2015, 4000 employees).
Why Invest In Berlin?
Capital of Europe’s strongest economy
Huge multi-sector investment from some of the world’s biggest venture capital funds
Secure legal environment
Berlin is the government and educational center of Germany
Major international and local companies are relocating to Berlin
Demand for residential accommodation hugely outstrips supply
Attractive rental yields and high capital appreciation potential.Rents in Berlin have been rising steadily, especially in recently modernised buildings,but it’s not only rents that are rising. House prices in certain areas of the city have doubled in the last yearEasy financing with low interest rates
Berlin real estate appears as one of the hottest areas for property investments in all recent market research and studies by real estate professionals and financial institutions such as PWC, Urban Land Institute, PNB Paribas, CBRE Richard Ellis, GSW, KPMG, Colliers.
Vacancies in Berlin are at the lowest point in the last 15 years
Unemployment in Berlin is at its lowest point in the last 15 years
Berlin has Europe’s lowest proportion of residential owner occupation. Only 16.2% of Berliners own their house, the rest are renting whilst Germany’s average is 43%.
Berlin’s population has been increasing since 2005 and this trend looks set to continue
Housing vacancy rate is expected be at 1% by 2016. Berlin’s Senate predicts a growth of up to 130,000 new households between now and 2020.(Source: Dr. Zittelmann – Residential Investment Market Report)
Low vacancy rates especially in central locations have attracted various investors in Berlin’s real estate (REITs, property companies and other institutional investors) from France, USA, Sweden and other countries.In the latest edition of “Emerging Trends in Real Estate 2015” conducted by PWC and the Urban Land Institute, Berlin ranks as the top city for investment out of 28 cities listed.
Berlin is attracting a lot of inward investment and re-location of government offices and businesses from other major cities in Germany (example: German Secret Police Central Offices (BND) moving to Berlin from Bavaria in 2015, 4000 employees).