We wish you a Happy, Healthy and Successfull Year 2018
The German and especially the Berlin property market experienced a record year in 2017 and left quite a few loose ends to watch out for.
Rent levels in the German Big 7
... Berlin, Munich, Stuttgart, Frankfurt am Main, Düsseldorf, Cologne and Hamburg have risen significantly although at quite different rates. This applies to all market segments but is most outstanding residential properties in Munich and Berlin. Some market participants will tell you that the limit is reached and others will say that especially in Berlin there is still plenty of scope compared to other European metropolia like Prague or Warsaw.
Construction of new Apartments and Office Space
... does not keep up with demand in the big population centers and increases the upward pressure on rent levels.
Legal Challenges in the Residential Market
Almost all legal measures undertaken by the Federal Government and Local Authorities have been somewhat successfully challenged in court. Mietpreisbremse battle taken to Germany's Federal Constitutitutional Court Another challenge is the use of Airbnb by tenants and apartment owners.
Financing Property
... might become more expensive in 2018 as the inflation rate in December was at 1.8% the highest in 5 years. The main cause was the rent development and energy cost. This could have an impact on interest rates which in turn might have a slowing effect on property price increases.
These are just a few items to keep an eye on. Stay informed about the developments: Sign-up for updates from this blog and visit our website berlin-portfolio.com.
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