Berlin Apartments for Sale- Gate Berlin

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Berlin Apartments for Sale- Gate Berlin
www.gateberlin.com
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Opportunities for property buyers in Berlin
Despite the balance between supply and demand of
Berlin property, it is becoming noticeably more
difficult to find well-priced properties in the
best locations. The luxury segment offers the
least number of available properties with top
properties frequently sold during the planning
stages of construction or renovation. Purchase
prices of properties in the lower segment of the
market and peripheral locations range from
1,000-2,500 per square metre. For properties
with good amenities in the better locations,
prices can range from 2,500-3,500 per square
metre. In upmarket locations with
better amenities prices go up to 5,500 per
square metre. At 3,588, the district of Mitte
leads price per square metre for new average
constructions, followed by Charlottenburg-Wilmersd
orf at 3,301.
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The rental market
Higher purchase prices impact rent levels in the
medium term. Berlin residential rents have risen
continuously since 2007, due to an imbalance
between supply and demand during a high demand
for housing. According to recent figures from
the Berlin Tenants Association, the number of
households has increased by 134,800 in the past
decade, but the number of additional flats has
risen by just 33,366. Berliners currently spend a
quarter of their income on rent, according to the
map of living costs created by the German Real
Estate Association similar to residential rent
spend in Munich. However, Munich residents pay
13.82 per square metre, almost twice rental
prices in Berlin. According to Wohnungsboerse
Berlin, the net rental price for new contracts on
flats in Berlin averages 7.98 per square metre
per month. The net rental price based on existing
contracts, without operating or heating costs,
averages 6.49 per square metre.
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Average prices for new rental agreements by area
The most expensive Berlin districts are stately
Grunewald (11.71) and Mitte (11.53) followed by
Friedrichshain-Kreuzberg and Prenzlauer Berg
(9.75), Charlottenburg- Wilmersdorf (9.52),
Pankow (8.92) and Steglitz-Zehlendorf (8.50).
Districts with below- average prices include
Neukölln, Lichtenberg and Reinickendorf with
significantly lower prices available in Spandau
(6.25) and Marzahn-Hellersdorf (5.40). For
leasing models, see FAQ How can I best rent my
Berlin property
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Sustainable trends in the Berlin Real Estate
market
Over recent years, the Berlin real estate market
has achieved significant momentum. In particular,
foreign buyers have discovered value in Berlin
property investments and are providing an
additional boost to purchase rates. The appeal of
the German capital is greater than ever,
following a period of relatively stagnant growth
with the population exceeding the 3.5 million
in 2012 and the Berlin Senate predicting an
increase of 7 to 3.8 million residents by 2030.
Plus, despite the European Union debt crisis, a
robust German economy has made its major cities a
comparatively safe haven for real estate
investors. According to experts, there is little
current danger of a price bubble burst in the
Berlin property market, despite healthy rises of
8.8 during 2012. A sustainable relationship
between supply and demand remains, given that
Berlin property sales operated at an extremely
low level for a long time, with very little new
housing construction over the past 15 years.
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Berlin leaps ahead of London
According to the PricewaterhouseCoopers study
Emerging Trends in Real Estate Europe 2013,
Munich and Berlin lead 27 major European cities,
including London, when it comes to location.
Investors are currently concentrating less on
investment strategies for entire regions or
sectors. Instead, they are very carefully
choosing targets that promise profits and
security for their investments. As a result, the
run on core properties is still high and good
properties are difficult to find. Residential
housing worth 1.7 billion changed hands in
Berlin in 2012 clearly leading other top German
locations such as Hamburg (375 million), Munich
(290 million) and the Ruhr valley (270
million). According to property consulting firm
Jones Lang LaSalle, the total transaction volume
was 11.1 billion, meaning Berlin property sales
represented over one tenth of the total German
residential market.
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Contact us
GATE Berlin property invest GmbH Kurfürstendamm
30 Berlin 10719 Germany Phone [phone]
540 Email info_at_gateberlin.com
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