Unofficial Free English Translation of the Rent Cap / Rent Freeze "Mietendeckel" Law as Published

This document is an unofficial translation of the Berlin Rent Cap / Rent Freeze Law known by the name “Mietendeckel” and it’s official title

Gesetz zur Neuregelung gesetzlicher Vorschriften zur Mietenbegrenzung 

It was published on the Journal of Laws and Ordinances for the State of Berlin on 22 February 2020 and came into force on the following day 23 February 2019.

This date is important to keep in mind when reading the text because it makes it much easier to understand when exchanging the phrase “date of entry into force” by the actual date.

Another phrase is “the effective date” which is the date the Berlin Senate announced the plan of the “Mietendeckel” law, it is 18 June 2019. Replacing the phrase by the date again makes it easier to understand.

I wanted to stay as close to the original text as possible to not obstruct the comparison of the language versions.

This translation has no official character and is free for personal use only. It does not constitute by any means legal advice in any form. The purpose is for non-German speakers to get an understanding of the content of the law and draw conclusions regarding actions to be taken and questions to be asked.

There is a tight timeline and most of the actions have to be taken as an initiative by the landlord. The first action is due by 23 April and the next one 23 November 2020.x

You're welcome to try Google-Translate ...,

or sign up to our newsletter and have the translation in your in-box in two minutes.

Unofficial Free English Translation of the Rent Cap / Rent Freeze "Mietendeckel" Law as Published

The Berlin Rent Cap, Rent Freeze, Mietendeckel Will Come Into Force On 23.02.2020

The Berlin City Government has worked over-time to ensure that there will be no rentals next weekend under the old legal conditions. The office for Urban Development has announce that the Rent Act "Mietendeckel" will be published in the Journal of Laws and Ordinances for the State of Berlin on 22.02.2020 and thus will come into force on the next day,

23. February 2020.

It will apply retroactively to the status quo as of 18. June 2019 when the Berlin Senate approved the key elements of a new Berlin law on residential rents, including the so-called "Mietendeckel", a combination of rent freeze and rent cap as its main features.

via GIPHY
There is a line of dates to keep in mind and take action upon:

31.12.2013

01.01.2014

18.06.2019

23.02.2020

23.04.2020 Your next action date.

23.11.2020

22.02.2025 

If you are a landlord in Berlin, owning a rental apartment older than 01.01.2014 you should be setting up your timeline, project plan and checklist to avoid trouble. In many cases you could actually get fined accepting a rent at more than 120 % of the table applicable to your property. The maximum is set at Euro 500,000.

We have installed a Newsletter for landlords affected by the "Mietendeckel" for support with these tools for their apartments.

Here is the opportunity for signing up to this "Mietendeckel" Newsletter.

Don't miss the opportunity.

The Berlin Rent Cap, Rent Freeze, Mietendeckel Will Come Into Force On 23.02.2020

Action Required - You Can Optimize Your Freeze Rent in the "Mietendeckel"

If you own in apartment building or apartment in Berlin completed before 2014 and currently have a vacancy, Swift action is advisable. The difference is 20% of the prospective net rent.

If residential space is or was re-let after the effective date 18 June 2019 and the lease continues to apply upon the Rent Act taking effect, the newly agreed rent will be relevant for the rent freeze. Thus, in such cases too, a market rent may be agreed before the Rent Act takes effect without the risk of the agreement being retroactively deemed invalid and the landlord being required to return any excess rent. At the same time, the tenant may, within nine months of the law taking effect, demand that the rent be reduced to the permitted cap (see The Berlin Rent Cap - "Mietendeckel" is here. What Do You Have To Do?)

In short: You can rent your currently vacant apartment at 19% above the cap table and that will be your freeze rent going forward, unless you re rent again within the next five years.

Sign-up for updates

To recap the latest main events:

The Berlin city parliament voted on Thursday, January 30, 2020, to pass the rent cap “Mietendeckel” draft into law. It will most likely come into effect at the beginning of March, possibly as early as the end of February when officially published.
This will trigger numerous deadlines for actions required to be taken by the landlord.
The answer to a much asked question:
Yes it does apply to furnished apartments completed before 2014.
We are offering a newsletter, starting with a summary and interpretation of the law as it went into the parliamentary hearing. going forward, we will be providing hands-on tips on the communication and the timeline that needs to be met starting with the information needed.
Here is the opportunity for you to sign up to this free newsletter:

Don't miss the opportunity.

Action Required - You Can Optimize Your Freeze Rent in the "Mietendeckel"

A Flood of Updates and Interpretations on The "Mietendeckel" Rent Cap To Be Expected

You are the proud owner of a residential rental property, a buy-to-let plan?

If you have not heard about it yet, you will soon from your property manager or tenant. There are already various interpretations going around and none less than the German Federal Government is planning to take the regulation to the Constitutional Court in Karlsruhe.

Sign up

To recap the latest main events:

The Berlin city parliament voted on Thursday, January 30, 2020, to pass the rent cap “Mietendeckel” draft into law. It will most likely come into effect at the beginning of March, possibly as early as the end of February when officially published.
This will trigger numerous deadlines for actions required to be taken by the landlord.
The answer to a much asked question:
Yes it does apply to furnished apartments completed before 2014.
We are offering a newsletter, starting with a summary and interpretation of the law as it went into the parliamentary hearing. going forward, we will be providing hands-on tips on the communication and the timeline that needs to be met starting with the information needed.
Here is the opportunity for you to sign up to this free newsletter:

Don't miss the opportunity.

A Flood of Updates and Interpretations on The "Mietendeckel" Rent Cap To Be Expected

Berlin Rent Cap - Mietendeckel - Actions Required Before The End of February

The Berlin city parliament voted on Thursday to pass the rent cap “Mietendeckel” draft into law. It will most likely come into effect at the beginning of March, possibly as early as the end of February when officially published.

It applies only to apartments completed before 2014! New property developments are not touched by this law.

There are three major aspects:

• A rent freeze 
• A rent reduction, where applicable
• A tenant rent refund

This article will focus on the rent freeze, the expected impact on the owner and the preparations to be made as the law applies with regard to landlords.

We assume that most of the discussions will initially be with tenants who received a rent increase after the cut-off date of June 18, 2019. Once the law comes into force, it can be checked whether there are any claims for recovery of the increased rent. Incidentally, this also applies to graduated rents (Staffelmiete) that have increased during this period.

The law stipulates that tenants can only request a reduction in rent nine months after the law comes into force. Any claims must be made by the tenants directly, the district offices (Bezirksamt) however may continue to take all measures necessary to enforce the law. This includes, for example, providing tenants with information about the legally permissible rent for their apartment.

However, landlords who have signed a new lease after the cut-off date and before the law comes into effect (end of February or beginning of March) can rest easy. According to a recent clarification in the draft law, this new contract rent will stand. Simple reimbursement of rent that has been paid too much is not owed.
Any rental contract signed between now and the date the law goes into effect is your “freeze rent”. However, the following also applies here: If the rent is inadmissibly high (more the 20% above the rent cap "Mietendeckel" table), a reduction can be requested under the terms of the new legislation.

Actions to take:

Get as many rentals of vacant apartments done by the end of February as possible, but keep in mind the 20% rent cap. More on this specific aspect coming up. 

This is a time critical issue, we can provide support in setting up your action plan and its execution. Contact us via the email address on the right.

Berlin Rent Cap - Mietendeckel - Actions Required Before The End of February

Berlin Housing Market Report 2018

The Berlin Housing Market Report has developed into a tool widely accepted in the Berlin Housing Market. Initiated by GSW an originally City-owned but now privatised property company it has experienced a change in sponsorship over the years and is now published by Berlin Hyp and CBRE. The report for 2018 is being published on 25.01.2018 and will be available for download for our clients and readers at the bottom of this page. If you have signed up before, you will receive the newest version automatically.

The report covers these areas:

• City comparison
• The city of Berlin
• Rents, sale prices, investments, transactions and financing
• Furnished housing
• New Construction
• The city: Expert interviews
• How cities and markets will develop by 2030 – and beyond
• Housing Cost Atlas: Introduction
• Housing Cost Map covering the whole of Berlin
• Berlin's 12 districts and their 190 postcode areas
• Explanatory notes on the rental map
• Rental map covering the whole of Berlin
• Special residential areas

Berlin Housing Market Report 2018

The Berlin Property Market - Outlook 2018

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.

The Berlin Property Market - Outlook 2018

Study: Eastern Germany's mid-sized cities are becoming increasingly attractive

TAG Immobilien AG Housing Market Report 2017

• TAG Housing Market Report Eastern Germany 2017 analyses 27 large and mid-sized cities in Eastern Germany
• Growing demand for housing in areas around major Eastern German cities
• Increase in popularity and new residents drives up rents and purchase prices, while vacancy rates fall 
• Household housing cost burden remains stable or even declines due to strong purchasing power growth

Hamburg, 18 October 2017 - Eastern Germany's housing markets are on course for further growth. Urban populations continue to expand while vacancy rates fall. As a result, rents and property purchase prices are increasing in many locations. The good news: "Despite the fact that rents are rising, dynamic purchasing power growth means that household housing cost burdens remain stable or have even declined in some places", said Claudia Hoyer, Member of the Management Board at TAG Immobilien AG. This has been confirmed by the "Eastern Germany Housing Market Report 2017", published by TAG Immobilien AG today. As with last year's study, the real estate consultancy firm Wüest Partner Deutschland analysed data from 27 large and mid-sized cities in Eastern Germany, including data on population and economic growth, rents and purchase prices, property yields and the financial burden of housing costs across the region.
The report also includes interesting details about the development of gross yields and price development in Berlin.


Further findings, including the complete Housing Market Report Eastern Germany 2017, can be downloaded for free here.

Study: Eastern Germany's mid-sized cities are becoming increasingly attractive

Have You Recently Bought a Condominium Apartment in Berlin?

Many international investors have bought condominium apartments in Berlin during the last years. Some will have full-service packages taking care of everything, hoping that everything will be alright. Some have bought an apartment, maybe even coming personally for the handover, proudly looking at their apartment - but what now?

Photo by All Bong on Unsplash

Just a few points to be thought of, best done a few months before:

• Who makes sure that any snagging is done right and timely while you are back home?
• How serious will the developer be when his last payment depends on the tick in the box on snagging - do you trust him to be acting in your best interest without supervision?
• Who holds the keys?
• At what rent should the property be rented - or should it be rented furnished with short-term contracts?
• If you want to go down the "Furnished Apartment" road, who takes care of this and who does the marketing for it?
• Who manages your apartment and rent collection, including
  
  • Budgeting
  • rent collection incl. chasing if necessary
  • payment of contributions to the owners association
  • property tax payment (quarterly)
  • tax documentation and handover to tax consultant in Germany
  • representation at annual owners meetings

Critical Point in Your Investment

This is the point in your investment that is as important as the purchase contract. The purchase contract and all the brochures are a promise. Now it comes to the fulfilment of your expectations - don't leave it to the developer and the agent who received a healthy commission - either from you or the developer - to make sure your plans work out. Even more important if reality does not meet brochure - you want someone on your side who knows the game. It also is a critical point for reclaiming some of the money you paid for a promise that was not 100% fulfilled - the clock starts ticking on handover day.

Our recommendation

Be prepared, don't leave it until the last day. But even if your handover has already happened and you are in the midst of having to make decisions by the minute - get some professional support with local experience. Someone with broad knowledge, experience and solutions. Everybody can point out problems, the next step is much more important - what to do? You don't need a lawyer, an architect and a rental agent to identify your next steps, you need someone who "owns" and "lives" your property and then proposes other specialists when needed and with specific tasks. Otherwise, you are likely to receive long documents with lots of possible or even real issues attached to a big fee account and still no solution.

We don't offer off the shelf solutions because every investor has a personal view about the degree of their own involvement. We can go from one-stop-shop including the management of the investment to just the production of a checklist based on the contract and its documentation. We are happy to engage in a conversation to find out what you feel is best for you.

Have You Recently Bought a Condominium Apartment in Berlin?

Sharp Rise in Rents in #Berlin - JLL Report First Half 2017

Asking rents in Berlin increased to €10.80/sqm/month in the first six months of 2017, approaching the €11.00/sqm/month mark. The last time rents increased as sharply was in the first half of 2012. Then, the annual increase was 13.1%, compared to the current 12.8%. Since 2016, the housing market has returned to a phase of strongly rising rents. The upswing in the Berlin housing market began in the second half of 2006, initially with moderate increases (+3.0% per annum) until 2011, and then with significantly stronger momentum (+8.0% per annum).

Overall, rents have risen by an average of 6.1% since the beginning of the cycle in 2006, and have almost doubled over that period. Given the high demand and lack of supply, rents can be expected to increase further over the next six months.

Source: JLL Residential City Profile Berlin 1st Half 2017

 Download the full report with details on all Berlin districts:

Residential City Profile Berlin - 1st half-year 2017

We provide support for finding the right property investment in Berlin - but we are not agents, or only in very few cases. Investors can rely on our impartial professionality. We don't only know about the sales process but also a lot about running a property to make it perform at its best potential.

Contact: http://www.berlin-portfolio.com/feedback.html

Sharp Rise in Rents in #Berlin - JLL Report First Half 2017

Chinese investors seize on cheap #Berlin properties

Photo by Artem Sapegin on Unsplash

Investors 'unaware' that tough tenancy laws limit potential for rental growth

JENS KASTNER, Contributing writer at NIKKEI ASIAN REVIEW





This article provides different views of the situation in the Berlin Housing Market and how long distance and lack of local knowledge are exploited by some selling to Chinese Investors. But the treatment was no better when Irish Investors invaded the Berlin property market 10 years ago.

Read the full article here: NIKKEI ASIAN REVIEW

We provide support for finding the right property investment in Berlin - but we are not agents, or only in very few cases. Investors can rely on our impartial professionality. We don't only know about the sales process but also a lot about running a property to make it perform at its best potential.

Contact: http://www.berlin-portfolio.com/feedback.html

Chinese investors seize on cheap #Berlin properties

What are your personal information requirements regarding the German Property Market 2017?

Tell us your needs!

There was a flood of reports and surveys about the outlook on the German Property Market 2017, "Quo Vadis..." and whatever the titles might be. We are guilty, we have tried to cover as many as possible, mea culpa ...


More important to us is what is YOUR view and what do you need to make the right decisions.

Grant us 2 Minutes of Your Time for better information

We would like to ask you to participate in a short survey to clarify your current interests. It will help us to tailor the information we provide to you and be more helpful supporting your information needs.

Click here to take the survey

What are your personal information requirements regarding the German Property Market 2017?

City Comparison Berlin and The Rest of The Top 7 in Germany

One of the results of this year's annual Housing Market Report Berlin 2017, published jointly by Berlin Hyp AG and CBRE. The report is available for download.

http://germanproperties.blogspot.de/2017/01/housing-market-report-berlin-2017.html

The housing market is catching up but purchasing power not yet. In 2015, Berlin gained almost 48,000 new inhabitants due to its positive economic development and attractive quality of life, thereby continuing the development of the past few years. Since 2005, the population of the city has grown by about 270,000 inhabitants. This increase entails a growing demand in the housing market, even if the purchasing power of other large cities in Germany is still well above the Berlin average (Cologne: plus 14.6 percent, Hamburg: plus 18.6 percent, Frankfurt: plus 23.7 percent, Munich: plus 42.5 percent). Despite increased new building activity, the vacancy rate in Berlin is now 1.2 percent, which is only slightly above the Cologne (1.1 percent) and Stuttgart (0.8 percent) but already below the vacancy rate of Düsseldorf with 1.5 Percent. Accordingly, the average supply rent in 2016 rose to € 9.00 per square meter per month but is still below the supply levels of the other Top 7 cities, of which Munich is the highest value at € 15.11 per square meter per month.

"The continued development of Berlin is impressive and offers a dynamism that is unique in Germany, both at the rental and new market as well as at the purchase prices," says Henrik Baumunk, Head of Residential Services at CBRE in Germany. "Nevertheless, there is still room for improvement in Berlin with regard to rents and purchase prices, due to the progressive growth in population, while at the same time moderate new construction and due to the increasing economic power of the city", explains Baumunk.

Offer rents are twice as strong as in 2015. In 2016, the supply rents rose by an average of 5.6 percent and thus reached a dynamic level comparable to 2014, when an increase in the supply rents of 5.8 percent was observed. In contrast, in 2015 the increase was 2.3% much lower. "Growing population numbers and economic growth are putting more tension into the market," says Gero Bergmann, a member of the board of directors of Berlin Hyp. "The offer is becoming ever lower because, in the case of scarcity and price increases, the willingness to move is always decreasing."

Not only the median values of all offer rents but also the mean values of the lower and upper market segments (the cheapest and most expensive ten percent of the offers) show marked differences in the growth rates between the districts. Across all market segments, the rents offered rose most clearly in Neukölln with 17.1 percent. Marzahn-Hellersdorf recorded as the only other district a double-digit growth with 10.2 percent. At 6.70 euros per square meter and month in the median, Marzahn-Hellersdorf was still the district with the most favourable offer rents - in the lowest market segment, there were even offer rents of 5.20 euros per square meter. At EUR 11.04 per square meter, Friedrichshain-Kreuzberg showed the highest average offer with a 7.5% increase. The district with the lowest increase was Charlottenburg-Wilmersdorf with 2.7 percent. In the upper market segment, 17.46 Euro per square meter was the rent advertised in Berlin-Mitte.

These rents result in very different housing costs quotas, the ratio of the purchasing power of residents to the average warm rent of an apartment offered. The housing costs range from just over 17 percent in some quarters in Marzahn-Hellersdorf to almost 47 percent at the Hackescher Markt in the district of Mitte.

The details about the districts will be analyzed and published in our blog http://propertylocations.blogspot.de/ over the next weeks. You might want to subscribe to the blog to receive updates.

For property search, assessment and management please refer to our website www.berlin-portfolio.com.

City Comparison Berlin and The Rest of The Top 7 in Germany

South China Morning Post: Berlin Offers Opportunity and Frankfurt, Stability

When looking at your home market it is sometimes useful to hear what others are saying. Especially Berlin seems to be everybody's darling in the forecast for 2017 and there are good reasons for it ... and bad ones.

Here are some quotes from the South China Morning Post (link to full article):

When considering Berlin property, affordability springs to mind – homes are a fraction of the price compared to London and Paris. First time buyers and investors – who may feel intimidated by prices in first-tier cities, but still want a foothold in Europe – are looking to the German capital, where there is good investment potential.

Unfortunately, this reminds of advertisements 10 years ago like: "Buy an apartment in Berlin for the price of a parking garage in London". It did not mention that the rent for the apartments in question was the same as those of a parking space in the top parking zones in London. Why? Let's not go there, you know the Ferraris I'm talking about.

Next quote:

These are exciting times for Berlin. Formerly run-down neighbourhoods have been transformed into fashionable, hip hangouts. Infrastructure development is rolling out, from a new international airport with connections to the Berlin S-Bahn and the wider regional and national railway grid, to new international hotels and retail sites rising up around the city. A large regeneration area directly behind the central train station will bring Berlin another centre of commerce, with integrated retail sites and mid- to high-end residential properties.

The development of so-called "run-down" neighbourhoods has a name, it's called "gentrification". This comment is not about the social impact on the locals but about the fact that apparently investors looking at affordability are lured into regions where there is very likely strong resistance to rents promises in the sales documents and no established environment for high rent tenants. People who look for affordability are not the right trailblazers, especially if they are investing their life savings.

But then Berlin has a lot to offer for investors, international and local - but not the "mid to high end" developments popping up in "no man's land" around Chausseestrasse or around Ostbahnhof. Our recommendation is looking for a single existing property in a mature neighbourhood with social infrastructure, shops and people. It will definitely require more effort than picking "apartment 138" from a glossy brochure that does not exist yet and certainly does not have a tenant paying a net rent of 15 Euros per square meter per month - but then belief is everything in the religion of real estate.

Here is the "I thought so...": We provide support for finding the right property investment in Berlin - but we are not agents, or only in very few cases. Investors can rely on our impartial professionality. We don't only know about the sales process but also a lot about running a property to make it perform at its best potential.

Contact: http://www.berlin-portfolio.com/feedback.html

South China Morning Post: Berlin Offers Opportunity and Frankfurt, Stability

German Residential Property: Price pressure remains high.

Purchase and lease levels in residential markets across Germany are expected to keep rising in 2017. This is the result published in a market report by Deutsche Bank Research, download the report in German here https://goo.gl/ab33hQ.

Macro-economic conditions that could indicate an end to the current price rally are not moving in that direction: Reversal of interest policy, significant increases in available property, or declining immigration, are not in sight in the foreseeable. The most dynamic city according to the report il be Munich; the high gravity for new residents and very low vacancy rate should keep prices on the rise for several years to come. This also applies to Berlin, in this case, because of the still-low price level and excellent labour market development. Frankfurt is already showing a Brexit effect in anticipation of London bankers with deep pockets, prices of single family homes have climbed 11.25 % compared to the previous year (other metropolitan areas 6%). Hamburg is showing declining lease activity and busy construction dynamics, while Düsseldorf has a relatively high vacancy rate. Rising interest would have a slowing effect on price increases in these cities.

For more in-depth information about the German property market and especially the Berlin Housing Market you might want to subscribe to this blog and visit our website http://berlin-portfolio.com.

German Residential Property: Price pressure remains high.

Miet-Map Berlin - Housing Cost Based on U+S-Bahn (Subway, Tube) Map

The biggest German property portal Immobilien Scout 24 has produced a map of Berlin based on the U-Bahn and S-Bahn lines, indicating the average net rent for a 70 m² one-bedroom-apartment (Zwei-Zimmer-Wohnung) in the area around the stations. It is an orientation for new arrivals to give an indication where to look - not less and no more.

For large image click the map, it will take you to the Immoscout24 webpage

It is the net rent and for budgeting purposes one has to be aware that the ancillary cost can easily add another 5 € or using the example 350 € to the budget.

The implications on the Immo Scout 24 site are, that you can use it to check your rent and ask your landlord to reduce the rent if it more than 10% above the rent table. Don't even try, it is a feature to sell their rent check (MietpreisCheck) which is based on their market data and not the official rent table. Unfortunately there is more detail to it, like: Age of the building, building standard etc..

An interesting idea - I wonder if it will catch on.

For more detailed data on the Berlin Housing market sign up on our website to receive the Berlin Housing Market Report 2015 and you will automatically receive the Report 2016 when it is available.

Miet-Map Berlin - Housing Cost Based on U+S-Bahn (Subway, Tube) Map

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

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 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

October 2013: Berlin Residential Real Estate and Investment Property Market