Wednesday 29 June 2011

Residential Property in Berlin - Top of the Shopping List in 2011

Residential Property in Berlin is currently considered a very attractive investment by German and International Investors, especially Institutional Investors. This is the result of a recent study by the German Market Research and Consultancy firm Bulwin Gesa, Berlin.

The prospects for investments in existing properties in Berlin are considered "positive" to "very positive" by 92% of those investors taking part in the survey. For investments in new projects the figure was at 86%. Berlin is back on top after some years of slower business.

A comparison of the seven "A-Cities" Berlin, Düsseldorf, Frankfurt/Main, Hamburg, Cologne, Munich and Stuttgart the Berlin Property Investment Market for existing buildings showed Berlin at the top with 71% naming it as most attractive. It was followed by Hamburg with 67% and Munich 58%. For new projects however Hamburg, Munich and Frankfurt are in the lead (in that order) leaving Berlin ranking fourth with 58% finding it an attractive Investment Market for new residential projects.

Investors are expecting the highest rent increases. More than half of the investors are expecting that Berlin will have the highest rent increases in residential properties. Second and third rank are Munich and Hamburg with 23% resp. 11%. Looking at the two segments "existing" and "projects" Berlin is way ahead in the existing properties regarding the expected rent increase. This is caused by the low starting level compared to other major cities. For new projects the expectations are lower but still seeing Berlin in the lead with 45% followed by Munich (34%) and Hamburg (10%).

Asked for reasons why investors stayed away from Berlin in he past 35% subsequently named the low rent level followed by the complex market structure which requires good local knowledge. Also the relatively high vacancy rate in the past has kept some investors away.

BulwinGesa has interviewed ca. 100 German and International Investors for this survey. The survey was sponsored by six Property Companies in Berlin.

The Berlin Residential Property Market has great opportunities but appears complex to the outsider. Knowledge of the local markets is important and independent advice is vital for Residential Property Investment in Berlin. We also recommend the Berlin Housing Market Report 2011 which can be downloaded from this Blog by following the link above.

For support in the identification of the right investment targets please visit our website at 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


No comments: