Berlin is ahead of London and Paris in real estate attractiveness

Berlin is located in the center of the continent: 45 minutes to the Polish border, a few hours to Vienna, eight hours to Rome

Berlin is home to about 3.4 million people, half as many as London, but its population will grow because of the influx of government agencies and business offices. All this creates potentially good opportunities for real estate investors.
The rental market dominates in Berlin. Only 16 percent of Berliners are homeowners. In Germany as a whole, nearly 45% of the population are such owners, and nearly 70 percent in the United Kingdom. According to Engel & Volkers, the largest real estate agency, homeowners can expect an average rental return of 6 to 7 percent, meaning that within 15 years the initial investment will pay off. That compares favorably with properties overseas, where rental returns tend to be seasonal. Nicolas Jaising, managing director of Engel & Volkers, said: "we are seeing interest from foreign buyers, such as the Chinese, the British and even the Greeks. We are currently building about 5,000 properties a year, but that's not enough. That puts a lot of pressure on rents."
Property prices in Berlin are lower than in London and Paris, even in the best neighborhoods. The price per square meter in the center rarely rises above 7,000 to 8,000 euros. This means that a new one-bedroom apartment costs between 300,000 and 450,000 euros. A one-bedroom apartment in a good but not central area of the capital can cost between 2,000 and 4,000 euros per square meter.


According to the foreign press for ForTrader.ru

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