Tuesday, 24 November 2009

Berlin Area Residential Market Turnover Shrunk by 36%

The apartment market turnover in the Berlin region shrunk massively in 2008 compared to the previous year. The total number of purchases fell to 21,600 that is a slump of 11%. In financial figures the turnover shrunk by 36% to €5.2bn. The figure for the turnover built property in Berlin was reduced by 48% and almost halved.

BBU, an association of Berlin-Brandenburg apartment firms operates a regular market monitor which showed these results. In some of the boroughs (Bezirk) in the western part of the city, the price level for old buildings with comfort features dropped from 14 to 13 times the annual rent—in some boroughs in the east, from 17 to 15 times.

At the same time, price increases were observed for condominiums in Berlin. During the coming five years, BBU is expecting an increase in demand primarily for housing in single and semidetached houses in Berlin.

Berlin will remain a predominantly rented and not owned residential market. In the market for rental apartments primarily small and large apartments will be in demand, while there will be an excess of 30,000 medium-sized apartments the report states in its outlook up to 2014.

For support in the identification of the right investment targets please visit our website at www.berlin-portfolio.com. Especially for international Private Investors and Property Funds we provide a task force service for quick reaction to interesting opportunities.

We provide independent support for the property search including foreclosure or auction properties and their valuation or appraisal. (Also see our free property market Research Service)

Please use this link to the contact facilities provided there to place any requests .

Uwe Falkenberg


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