Real Estate Investment in Berlin

Executive Summary
Berlin has been the Europe's Real Estate Hotspot for over two years now. Is it not too late to jump on the train? No, it is not too late! Attractive real estate, even at entry level is still coming into the market, with positive cash flow and a realistic expectation for capital appreciation. Careful research is required to make sure the information provided is met by the reality after the purchase. Local support is recommended.

Berlin is a Real Estate Market for professionals and starters. It offers capital growth for investors with plenty of income who want to make a good profit long term as well as novice investors who are relying on their investment to generate immediate income. Both types of investments are available in Berlin and many provide both.


Economic developments
A strong development in the global economy and a robust growth in the EU are indicative of the current macro environment and are the driving forces behind a boom situation that after years of downturn finally has reached Germany's economy. For the third quarter of 2007 the German economy experienced its strongest upturn since the re-unification boom in the early 90's and for the first time in years the growth was led by consumer spending. Despite the "sub prime" irritations in the US financial markets the OECD Outlook for economic growth in Germany for 2007 is 2.6% and for 2008 2.0%.

German Property Market
The German Property Market is Europe's biggest with record transactions in 2006. Figures for the first half of 2007 show no decrease in volume. Except for the mega portfolio deals the German market has seen in that period the focus points were Berlin followed by Dresden and Leipzig.

Germany is still currently one of the few major economies where an investor can expect a positive cash flow from property investments. Despite the high demand prices are still low in comparison to international markets, even the Eastern European ones. The potential for property appreciation is strong.

The rent level is still low and trailing behind the economic development. So buying now offers an upside on the cash flow as a good management can capitalise on the catch-up to follow.

Berlin Property Market
The Berlin property market still shows traces of the rent regulations in ex East Berlin because of the political system and ex West Berlin because of the highly subsidised status of the rental market. The rent level is relatively low and trailing behind the economic development. So buying now offers an upside on the cash flow as a good management can capitalise on the catch-up to follow.

Why now?
Global property players have been in the market for over two years now and have tied a great deal of their equity. This is where the chance lies for new arrivals in the market. They are not absorbing new opportunities coming to the market. Good investment opportunities require speedy decisions and ready available equity. These factors create a competitive advantage in the market. Equity is the easy part for a new arrival in the market but speedy decisions require market information and knowledge if they are not to turn out as risky or maybe totally wrong.
There is only one solution to this situation - local partners, already present in the market with access to off market properties and know-how in the execution of their purchase, development and operation.

The best strategy
The right strategy for the way in and the way out again is vital to any successful investment.
Properties need to be selected to match the investment period planned. If upgrading is planned it will take longer to get the full benefit of increased rents with increased property value than just adjusting the rent on a previously poorly managed property.

The exit strategy has to be clear and the business plan developed accordingly. Whether the sale as condominiums or as a block of rented apartments, market knowledge of the respective markets is vital for the right purchase decision and the business plan. With the right partners at the starting point a successful and profitable exit after 3 to 7 years, depending on the strategy, is easily achievable.

For investors new to the market the purchase of a rented apartment with secured cash flow is the best way to get to know the players and the procedures in a new investment environment. Find examples here: Rented apartments in Berlin.

For more detailed information please visit the website of Berlin Portfolio Ltd. or contact the author by clicking on this link:E-Mail



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Real Estate Investment in Berlin

London Stock Exchange: Rental market in Germany is "very big"

An expert has suggested that there is a large market for private rented property in Germany. More Information on London Stock Exchange

London Stock Exchange: Rental market in Germany is "very big"

Performance Measurement in Real Estate Operation

Measuring the performance of single properties, portfolios or service providers like property managers are vital to any sound management decision: "What you measure is what you get!"

Depending on the depth and size of the organisation the measurement can take place at various levels and can then be aggregated upwards. From property to location to portfolio etc..
It is also important to measure the performance of service providers influencing the performance of the property: Asset Manager, Property Manager, Facility Manager or the own internal organisational units.

In order to establish measurements as management tools the "philosophy" of the property or the portfolio needs to be defined and broken down into targets to be fulfilled to meet the philosophy. What does that mean? Ambitious but somewhat achievable targets for rent and value development have to be set and determined which are the immediate factors determining their development. This process is best done by looking at historic data, available data from comparable (good performing) properties and/or property benchmarks. The measurement then includes the targets against their set values and the defined factors like tenant turnover, payment backlog etc. It is of great importance that these factors reflect not only what has happened, like already occurred payment backlog but also warning indicators like tenant turnover or late payments.

All of these performance indicators are then mapped against their targets in a graph which will show the decision maker at one glance where the performance is as expected or better and where attention is required. These graphs are produce at every level where measurement takes place and can be aggregated upwards: A graph for each property, each location, each manager or the entire portfolio.

When applied in the right manner, this can be one of the most powerful tools for managing a property portfolio.



The performance indicators are based on the Balanced Score Card philosophy. Decisions based purely on financial data can only be reactive whereas the consideration of average contract durations, tenant turnover, payment moral etc., are early warning signs for developments and provide a guideline for areas to focus on.


For more detailed information please also visit the website of Berlin Portfolio Ltd or contact the author by clicking on this link: E-Mail





This work is licenced under a
Creative Commons Licence.

Performance Measurement in Real Estate Operation

Berlin named as City of the Year

Berlin named as City of the Year
by Frank McDonald

Berlin has beaten Amsterdam and Barcelona to win the Academy of Urbanism's European City of the Year award, for its outstanding achievement in remaking a city that was divided for nearly 50 years. Frank McDonald , Environment Editor, reports.

The Great Town award went to Kilkenny city, with St Andrews in Scotland and Winchester in England as runners-up, while the Great Neighbourhood award was won by Grainger Town in Newcastle, ahead of London's Soho and Temple Bar in Dublin.

The academy's other two Urbanism Awards crowned Buchanan Street in Glasgow as the Great Street, defeating both O'Connell Street in Dublin and London's Regent Street, and Sheffield's Peace and Winter Gardens as the Great Place, ahead of Quayside in Newcastle/ Gateshead and London's South Bank.

The awards were announced yesterday at an Oscars-style presentation in the Dorchester Hotel, London. Academy chairman John Thompson said it was "fantastic to be able to honour Berlin because it's still a real city of opportunity, a city that's being reborn yet again".

It was "great to have an Irish town coming through in this year's awards, especially Kilkenny which is coming to terms with economic growth without losing its wonderful character and humour", he said, adding that the awards for Newcastle, Glasgow and Sheffield were also well-deserved.

Adjudicators from the academy visited every one of the 15 nominees for the awards.

In the case of Berlin, they noted that it was now rediscovering and reinventing its unique sense of place, and aiming to achieve social sustainability through innovative urban renewal.

"The remaking of a city that was physically and politically divided for nearly 50 years, and subject to radically different architectural and planning traditions, could have been overwhelming. But the commitment shown in responding to these challenges is a story of outstanding achievement.

"Berlin is both rediscovering and reinventing its unique sense of place and identity. The fundamentals of plan and form incorporating green spaces, water and nature are being reinterpreted with both an eye to the past and the future. It is also an affordable city in which to live and work, a place that offers a high quality of life."

Amsterdam was seen by the academy's adjudicators as a well-managed city, with a proud tradition of urban planning and huge ambition for the future, particularly along its waterfront, with an urban plan and form that are still shaped by the need to control water.

Barcelona was described as a city with a strong local character, a clear vision of its role as the capital of Catalonia and an equally strong design culture and civic leadership.

But there was concern that emerging high-rise development is more redolent of Benidorm.

In last year's Urbanism Awards, Edinburgh beat Dublin and London to take the European City of the Year award. Other winners were Ludlow (Great Town), Glasgow's Merchant City (Great Neighbourhood), Marylebone High Street (Great Street) and London's Borough Market (Great Place).

Frank McDonald is a founder member of the Academy of Urbanism

© 2007 The Irish Times

Berlin named as City of the Year

Why Property Investment in Germany

Economic developments

A robust development in the global economy, strong growth in the Eurozone are indicative of the current macro environment and are the driving forces behind a boom situation that Germany's economy has been waiting for years. Towards the end of 2006, the German economy experienced its strongest upturn since the New Economy boom in 1999/2000. All significant economic indicators point to a positive growth outlook for 2007 and suggest a sustained economic revival that will not lose its impetus during the following year.
In 2006, the German economy regained its role as the power behind growth in the Eurozone, the vitality of this upturn exceeded all expectations.

The German Property Market is Europe's biggest with record transactions in 2006. Figures for the first half of 2007 show no slackening in volume.

Despite the high demand prices are still low in comparison to international markets, even the Eastern European ones. The potential for property appreciation is strong.

The rent level is still low and trailing behind the economic development. So buying now offers an upside on the cash flow as a good management can capitalise on the catch-up to follow.

Germany is still currently one of the few major economies where an investor can expect a positive cash flow from property investments.

Why now?

Global property players have been in the market for over two years now and have tied a great deal of their equity. This is where the chance lies for new arrivals in the market. Good investment opportunities require speedy decisions and ready available equity. These factors create a competitive advantage in the market. Equity is the easy part for a new arrival in the market but speedy decisions require market information and knowledge if they are not to turn out as risky or maybe wrong.

There is only one solution to this situation - alliances with trustworthy partners already present in the market with access to off market properties and know-how in their purchase and operation.

What is the best strategy?

Developing the right strategy for the way in and the way out again is key to any investment. The properties need to be selected for the investment period envisaged. The exit strategy has to be clear and the business plan developed accordingly. Whether sale as condominiums or a block of rented apartments, market knowledge of the respective markets is vital for the right purchase decision and the business plan. With the right partners at the starting point a successful and profitable exit after 3 to 7 years, depending on the strategy, is easily achievable.

For more detailed information please visit the website of Berlin Portfolio Ltd or contact the author by clicking on this link:E-Mail

This work is licenced under a
Creative Commons Licence.

Why Property Investment in Germany

Foreign Investors are looking for German Compentencies

Especially foreign investors are currently looking for a "Home Base" in Germany. They do not have their own offices here but bought substantial property portfolios throughout the last months. Just Property Management does not achieve the investment objectives of stable development of the portfolio value. A growing number of Investors are looking for experienced partners in Germany.

The German market is reacting by establishing the service providers to meet the growing needs. Just renaming a property management will not do the trick!

Foreign Investors are looking for German Compentencies