Friday, 4 October 2013

October 2013: Berlin Residential Real Estate and Investment Property Market



Berlin residential real estate and investment property market


Residential market :


  • 87 % of the housing stock is rental housing
  • Extensive historical buildings in Berlin available
  • the average basic rent at approx € 7.50 / m² ( 2012, increase of 13.8 % on 2011 )
  • price level well below other international capitals
  • High demand for housing in high income and demanding segments of the population
  • Low residential construction (about 3,000 units per annum )
  • Many of the houses are in good condition ( “Reconstruction East” , renovation through tax incentive models), extensice renovation of pre-war buildings

Rental Housing Market :


Young Metropolis Berlin
Young Metropolis Berlin
Also in 2013 , the popularity of Berlin as "a place to be" will continue. Sustainable rising rents and very good predictions for the housing market have ensured that in addition to private investors who have always viewed Berlin as an investment hub, the traditionally slower Institutional Investors appeared again as buyers. There are almost on a daily basis headlines about big package deals.

For many high net worth private investors the reasons to invest in Berlin Residential Property have been obvious: A stable investment in troubled times.

Interest rates are historically low , the rents rise above the rate of inflation and the vacancy rate is narrowing. Properly managed resources generates returns that do not exist in other forms of investment for the foreseeable future.

The supply shortage is going to cause further moderate price increases. The average prices in Berlin so far have remained remarkably moderate. In general although there were increasing purchase prices no price bubble has built up.

For investors in 2013 , Berlin is a more promising market, as opposed to other German cities that are even shorter in supply of interesting investments. In the German Capital one can make attractive investments through systematic search, while the Investment property market in other cities has come to a massive slowdown due to the low supply of opportunities.

" Window of Opportunity "


Why invest in Berlin?


Berlin Marathon
Berlin Marathon
Berlin is attractive and popular. The Berlin Marathon on the last Sunday in September brings visitors from around the world. Many decide to buy some property because they like the atmosphere of a growing young metropolis.

  • Berlin is a favorite among private and institutional investors with a specialization in Residential Properties.
  • Favourable yield levels and prices per sqm compared to other European cities, especially capitals.
  • Yield level will adjust soon adjust to other European cities > will lead to price increases.
  • Positive population growth.
  • Increasing number of single households and commuters.
  • Low volume of new construction.
  • Rental increases continue.
  • Property prices continue to rise.
  • Cheap redevelopment prices.

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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