Our Prestige MLS Member, Rubina Real Estate sent us a interesting article about the Luxury Real Estate in Berlin. A glad way for us not to spotlight our Prestige MLS Member and to focus on one of the main european hot spot for foreign investors.
Berlin’s unique character offers young employees, artists and musicians from all around the world a perfect venue for their work and lives.
Berlin’s real estate market is quickly becoming a hot spot for foreign investors. Not only is German property perceived as a stable investment amidst crisis times, but also the macroeconomic factors indicate a favorable trend for investments in real estate. The main benefits of investing in Berlin include the following:
The City has a High Growth Potential
Because of the amenities the city offers as well as the low living costs Berlin’s population is on the rise and the growth is expected to continue during the next two decades. In December 2011 Berlin passed the 3.5 million mark of registered citizens. According to a forecast made by the statistical office Berlin, the capital’s population is expected to grow to 3.752 million people, which makes up a 7.2% increase compared to 2011. Accordingly, the demand for housing will increase, and real estate investors will benefit the most. In addition to that, capital gains prospects are greater in Berlin than in other towns in Germany.
Average Price Less Than in Most European Cities
Berlin has some of the lowest property purchasing prices in Europe. As a matter of fact, the cost of buying property in Berlin is approximately 3 times less than the cost of buying property in London or Paris. This has made this city an attractive alternative for foreign investors seeking to own part of this great metropolis.
Europe’s Silicon Valley
As Berlin becomes the Silicon Valley of Europe, venture capitalists are increasingly setting up base in the city. The Berlin Chamber of Commerce reports that 1,300 Internet startups have been founded since 2008. This has created employment for thousands of local residents and is increasing the city’s attractivity to young professionals. Berlin has also risen ranks to become the third most visited city in Europe.
Skyrocketing Rents
Berlin is a rental market – about 86% of the inhabitants are tenants. The apartment vacancy rates have decreased from 8% to 2,3% in the past 5 years. This growing demand is accompanied by rising rental prices in Berlin. These have been increasing steadily over the past couple of years. Investors have rushed to renovate existing buildings in order to take advantage of the high rental prices. According to the German tenant’s association, the rents could increase up to 10% in 2013.
Cultural Diversity
Berlin is currently one of the most popular destinations for tourists and an important transportation junction in Europe. With its conglomeration of styles and cultural influences, Berlin’s unique character offers young employees, artists and musicians from all around the world a perfect venue for their work and lives.
All in all, the metropolis Berlin is one of the top attractive cities for investing in real estate.
Are you definitely attracted to the idea of investing in real estate in Berlin? Discover the luxury properties listed by Rubina Real Estate on the Prestige MLS website.
