The situation on the real estate market in Berlin
The real estate market was in the first place in the list of the safest options for investors who were disappointed in the liquidity of securities and are worried about the security of their assets. Analysts say that German real estate is increasingly being viewed as an object for low-risk, long-term investments. Housing costs in Germany fell by less than 1% for one year, adjusted for inflation (while in the United Kingdom, for example, the decline was more than 14%) Berlin – one of the most attractive cities in Europe for investment in real estate Berlin is still one of the most promising cities in Europe among investors in the real estate market. This was particularly evident in the 2008 crisis, when real estate prices in Berlin not only did not decline, but even rose steadily and continued to grow.
This contributes to increase the level of prosperity of the population, the branched structure of the company, competent local community policy, geared to foreign investors, all this contributes to the very rapid growth of Berlin’s popularity, which for a long time in the shadow remained after the fall of the wall, a long time that had to bear heavy burden of the socialist heir. It is therefore no coincidence that the investment volume for real estate in Berlin is increasing geometrically every year. Low prices and stable rental income attract foreign banks and private investors from around the world. In its recent review of the real estate market consulting firm Berlin Dominart Real Estate reports that the rental income of real estate in Berlin will continue to rise rents and are also still 5 to 6 times lower than in other parts of Europe.
In addition, it is known that the Germans prefer to rent a house, not buy. According to statistics, the owners of real estate are about 40% of the population of Germany and in Berlin it is about 10-15%, ie about 85% of Berlin rent their houses. Today, Berlin is popular with investors in the real estate market and bypasses Munich and is already competing with London, where real estate prices are more than 300% higher than in Berlin. The Russians regained the status of the main buyers of expensive real estate in Berlin this year. Presumably, this was made easier by the situation in Russia. Prices for luxury real estate in Berlin: The average price of a villa or apartment in the city center is over 4,500 euros per m2. For the year, houses and apartments have risen by an average of 14%. Thanks in particular to foreign investors, prices continue to grow – now they account for 45% of transactions for the purchase of real estate. Particularly striking is the growing number of investors from Russia, who are looking for a way to invest abroad due to instability. Apartments and houses in Berlin are always popular among Russians it is only in our society, the number of transactions in 2012 by 15% higher than the same 2011 The unstable situation in the global economy makes apartments and houses in Berlin attractive for investment.
