The much scrutinised rise in property prices and rents over the last months is taking a breath in the second quarter of 2013. This is the result of a regular study performed by Empirica (click for full report in German) looking at advertised offers.
Investment Apartments
For condominiums, prices went up by 0.1% compared to the previous quarter 2013 but up by 5.1% for the German average compared to the second quarter 2012 (YTD). For the big cities this YTD figure is even 6.7%.
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Interestingly the Berlin market for condos does not appear in the top 10, yet neighbouring Potsdam made it. Common view is that Berlin will catch up soon and at high speed. Berlin being traditionally a city of renters (more than 80% are renting) there is a high influx of international money looking for investment after the stock markets are getting more and more volatile due to uncertainty about the duration of cheap money from the Federal Reserve in the US.The demand of international investors is mainly targeted at buy to let apartments in preferred locations in Berlin.
Rents
There was virtually no change in rents compared to the previous quarter detected by Empirica. Compared to last year the average rise in Germany was 3.3%.
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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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