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

Berlin Housing Market 2013 - What's up?

During the last few weeks there were some significant changes in the Berlin Housing Market.

Berlin Rent Table 2013

The new Berlin Rent Table 2013 (Mietspiegel 2013) was published and showed significant rises (20+ %) in some areas and hardly any changes in others compared to the 2011 rent table.

Location Grading Map of the Berlin Rent Table 2013

Reminder:

The official rent table determines the limit to which rents for existing contracts can be raised. Other regulations apply as well, (see below). The table does not apply to new rental contracts, even though tenants looking for apartments will tend to take their information from there.

New Cut Off Rate for Rent Increases

A change in the tenant law by the federal government allows the local governments at state level to reduce the cut off rate for rent increases in existing contracts from 20% over a period of 3 years to 15%. Two of the states, Bavaria and Berlin were very quick in applying this option and have issued regulations for Munich and Berlin respectively, meaning that as of March 2013 this new limitation applies. By the way,  both states have elections coming up this year as there will be elections at the federal level.

Setting up the right strategy

First of all - do not have your property manager send out a rent increase to all tenants at the same time, you might find yourself with more simultaneous vacancies than you would like. This really does happen!

Before applying the possible increases of the the rent table draw a development plan for your property. This does not necessarily mean spending extra money but have a guideline for you property manager where you want to be in 5 or 10 years. Some examples:

• Use repairs and tenant changes for upgrades if this is what gets you into a better bracket within your location.
• Groom some tenants that you would like to keep and take it easier on increases, engage them into a dialogue.
• Take good care of the first impression of your property. If you want to attract tenants that are prepared to pay higher rents you have to do just that, attract them.

Falkenberg Solutions - Real Estate Consultants have supported the development of such plans. Good property managers should be able to help you but are often to involved in the property to take a step back for the assessment. Sometimes they would have to ask themselves why they have not done x or y long ago but this lies in the nature of being tied down in day-to-day business. A fresh look from a third party is often the best way. Click here to find out more about the services and/or contact us.

Berlin Housing Market Report 2013

Shortly we will send out the 2013 Berlin Housing Market Report with the latest developments for the different regions of Berlin. If you requested the 2011 report from us you will receive the update automatically. If you have not requested it, you could sign up for the 2012 Report here on this blog by using this link:
http://germanproperties.blogspot.de/2012/04/berlin-residential-market-report-2012.html
or you come back here as it will be announced soon. There is also a sign up box on our website http://www.berlin-portfolio.com.

Berlin Housing Market 2013 - What's up?

Why is Berlin-Prenzlauer Berg still a Destination for Property Investors?

Prenzlauer Berg

Right from the beginning of the discovery of Berlin as a Property Investment Hotspot for International Investors in 2004 the area of Prenzlauer Berg or "Prenzlberg" to the locals was one of the focus points. It soon became too expensive for reasonable investments and there still was a lot to do. At this point many tenants and investors tuned to the neighboring Friedrichshain. Still today Friedrichshain is more "studenty" whereas Prenzlauer Berg is more "Bohemian" with a higher level of rents (and income). Here is some backgound information:

Prenzlauer Berg was developed during the second half of the 19th century based on an urban planning design from 1862 by James Hobrecht, the so-called Hobrecht Plan for Berlin. Envisaged as a working-class district, its tenement houses (in German: Mietskasernen) were mainly inhabited by intellectuals, artists, and students in the former German Democratic Republic.

This area of former East Berlin is now perhaps the most sought after area to live for professionals and young families.  The area was relatively unscathed by Second World War bombing, leaving street after street of intact 19th and early 20th century apartment buildings.  It offers an abundance of beautiful pre-war ‘Altbau’ buildings, the vast majority of which have been completely restored since unification of the city.  Rising property values have led to more wealthy residents moving into some areas of the borough.

It is close to central Berlin and has a lively café, bar and restaurant scene as well as several parks and green spaces. Popular places to go out include Kastanienallee, Kollwitzplatz (home to the sculptor Käthe Kollwitz), with its excellent Saturday market, Kulturbrauerei (an expansive brewery which has been transformed into a centre for culture and evening entertainment) and Helmholtzplatz.   Keeping in rhythm with a slower, more livable pace, this area also abounds with several weekly street markets and the world-famous Mauer Park Flea Market every Sunday.  This area is also home to countless advertising, design and media firms and traditionally the bohemian quarter of East Berlin,this is still a haven for artists and alternative culture, despite gentrification.

Some of the Highlights of Prenzlauer Berg

The varied history of Berlin comes to life in this neighborhood through its many diverse cultural and social offerings. Truly this is one of the most interesting places to take in all that this reborn city has to offer, which also makes for an ideal property investment opportunity in Berlin.

Over a period of only 3 years the purchase prices for apartments in Prenzlauer Berg rose from 2,300 €/m² to 3,000 €/m² while the rents in the same time span went from 7.30 €/m²/month to 9.24 €.

Because of its ambiace Prenzlauer Berg is attractive as a location for condos to be used by he investor as much as a buy to let investment in rented apartments. Attractive developments with excellent potential and both options are coming up for sale . More detailed information can be found here: www.Properties-in-Berlin.com.

Why is Berlin-Prenzlauer Berg still a Destination for Property Investors?

Where is Kreuzkölln - Property Investment in Berlin

One of the latest "hype" areas in ther berlin housing market is Kreuzkölln or Kreukoelln for those who do'nt have the benefit of a German keyboard. This is an artificial name made up by the two districts of Kreuzberg and Neukölln.

It is a region of less than 1 km² with a popolation of about 18.500. It is also defined as the "Reuter Kiez" because the square "Reuter Platz" defines its center. To the north and east it boarders onto Kreuzberg-Friedrichshain at the Maybachufer of the Landwehrkanal and Kottbusser Damm. Sonnenallee, Wildenbruchstrasse and Kiehlufer are the boarders towards the other parts of Neukölln.

Having been one of the problem zones and social hot spots of the district the area has developed into a trend area like Friedrichshain after Prenzlauer Berg was over subscribed. There are currently no shops available for rent as every possible space is turned into a cafe, restaurant or other trend-shop. This so called "gentrification" led to an attempt to verbally expand the area of Kreuzkölln e.g. to Flughafenstrasse.

For an official map of the area click here.

Where is Kreuzkölln - Property Investment in Berlin

Properties-in-Berlin.com Relaunch

Our sister website Properties-in-Berlin.com is currently relaunched. The site serves as a portal for a network of property agents specifically targeted at international investors. It provides all information in English.

A new product section is now included: Villas.


The other sections are Single Apartments either vacant as Condos or rented as Investment Apartments.

Retail and office buildings in Commercial Properties

 Residential Investment Properties

And some specialised topics like Development Properties and building plots.

The listings are currently uploaded and will be kept updated.

The aim is to provide information and a network of professionals needed in the process of buying a property in Berlin: Tax consultant, bulding surveyor, solicitor, Notary public and finance.

Properties-in-Berlin.com Relaunch

Berlin Charlottenburg, High Profile Landmark Commercial Building off Kurfürstendamm

A rare opprotunity was brought to our attention and we are authorized to forward the offer to any serious investor:

Berlin Charlottenburg, just off Kurfürstendamm ( Ku'damm )

Twin Building with high profile retail units on the ground floor and offices above.

Registered Landmark Building , high quality fit out, 2 lifts per entrance   

        

Office     6.693 m²        

Retail     539 m²        

Basement/Storage     586 m²        

Residential     139 m²       

Total Space     7.957 m²        

Currently under rental offer, office 424,16 m² + storage 37 m².         

• Potential rent p.a.      €  1.551.369,00
        5,5%      gros yield
  
• Actual net rent p.a.      €  1.482.992,00
        5,3%      gros yield

           

Purchase price        28.000.000,00         

           

Commission     4% plus VAT paid by the buyer

                          

For detailed information please contact us through the contact facility on our wedsite

www.berlin-portfolio.com

Berlin Charlottenburg, High Profile Landmark Commercial Building off Kurfürstendamm