Berlin Apartments For Sale
Investing In The City Of Berlin
An Economic Outlook
At present time, the economic outlook of Germany is definitely and certainly bullish and things are looking up for this highly urbanized state. From 2008 up to the present, the economy is metamorphosing from being predominantly export driven into a growing domestic demand scenario. As never before seen in the past several years, salary grade increases for the labor sector have been adjudicated and approved and consumerism has been very receptive to the economy. This development has resulted in the lowering of the unemployment rate, as more and more companies are getting back into hiring additional employees and staff. This economic revival has energized the property market sector of the country.
The Local Economic Situation
The year 2006 has seen the creation of 7,000 new employment opportunities and the growth of the economy of Berlin by at least 1.9 percent. Although this economic growth rate is below the average growth rate in German history, the increase in new jobs and the proportionate and consequent decrease in unemployment is certainly above average. It is evident that since this period, business firms and corporations have embarked on expansion ventures, setting up new establishments and branch offices in Berlin, with emphasis on media and innovative and modern technology and resources. After the fall of the Berlin wall, and the exodus of inhabitants of Berlin to the newly developed suburbs and districts, the population of Berlin today is at a constant 3.4 million people, making many Berlin apartments for sale available.
The National Property Market
In the last three years, Germany has seen a tremendous pouring of capital from abroad to its property market sector, and the three successive years have each outshone the other in terms of economic performance. Although in 2008, there was more of an economic fortification and regrouping that occurred. The plentiful number of big investors has opened up a mass of trade and business opportunities for the smaller and private investors that could partake of the large economic pie.
The Property Market Of Berlin
Before the property market boom started in 2006, Berlin was in economic stagnation for almost two decades. In 2006 through 2007, big international investors have capitalized in acquiring large inventories of undervalued properties. 2006 saw a record turnover rate increase of 50 percent at an unprecedented value of 15.8 billion euros. This has led to property rate increases with the 8 percent to 10 percent yield becoming unattainable in certain locations. Prime locations showed yields of below 6 percent, while ideal locations like Steglitz have produced offers ranging from 6.5 to 7 percent, many of them possessing immediate development capability. The rental rates for residential apartments and flats have shown significant increases during this period. In this regard, the viability of Berlin apartments for sale as an investment has become a wise and fruitful business option. The property market in Berlin has turned very attractive at almost all levels because of the full potentials of appreciation of capital investments. A word of caution, however, is to make careful research and study and acquire proper and adequate market knowledge first before making the actual purchase or acquisition, in order to get the best deal available in an ever-growing competitive market.
Recent Berlin Apartments Market Development
When talking about Berlin apartments for sale it has to be noted that the trend in Berlin in 2008 and onwards is to focus on privatization schemes where the big international corporate investors who have purchased vast tracts of residential properties are marketing individually titled apartments, whether as vacant condominiums for the owner’s personal usage, or as a buy-to-let apartment investment. These schemes have generously opened a host of business opportunities to the smaller and individual private investors, making for a healthy and bullish property market sector.
Financial Support
Recognizing this economic revival and upswing in Berlin, banking and financial institutions have opened up financial packages that are designed to further stimulate the growth of the property market sector. They have offered the public financing at the level of 65 to 70 percent of the purchase price of properties.
The economic circumstances in Germany, specifically in Berlin are definitely bright and promising, and it appears that this will hold true for a more enduring period of time. Basically, the property market in Berlin is propped up by the following factors: a strong and stable population base backed up by new employment opportunities; cooperation and commitment between the foreign investors and the German government to the property locations; lower market prices than neighboring European locations with higher yields after financing.
21 Pointers to Berlin – The Capital of Investment
1. Latitude: 52 31’ 12’ N Longitude: 13 24’ 36 E
2. 147,231,237 Visitors per year
3. 892 Km2 total area.
4. 59 Km2 water area.
5. 4,160,000 trees
6. 5000 sights and counting!!!
7. 91,9200 hotel beds
8. 3,410,147 x warm welcomes
9. 101,200 meetings and congresses each year.
10. 40,000,000 business conversations.
11. 4,560,000 m2 shop floor space.
12. Over 765 years of history.
13. 146,636,321 years of experience.
14. 569 museums and galleries
15. 3,278,645 artists.
16. 1,500 events each day
17. 3 opera houses
18. 3,039,123 musicians
19. 2,580 trendy locations
20. 447,200 trendsetters.
21. 3,560,000 hosts.
A Few reasons – why you must invest in Germany
Why you must invest in Germany? Let us start off with some facts about Germany and it’s 82 million residents. It is considered as a region most in demand place in the European region with a total gross income of 2.2 trillion Euros. The country’s economy is considered the biggest in the region and it ranks third in the listing of the strongest economies of the world.
Since it is a prime, central location in Europe, it then serves as an abundant hub for various services and goods. It ranks seventh in the most industrialized nations which has the biggest share in world trade. The country has always been open for foreign investors with its open market. These various business establishments have given jobs to about 2.7 million people and since the industries no longer have control over the market, then this is making investors even more eager to start a new in Germany and in particular Berlin.
German property prices have increased little by little for the past decade, however property in Berlin certainly on the rise as investers and berliner begin to realise the potentail for profit in owning property. There is only a small percentage of Berliner’s around 15% who have their own home, compared it to the UK where the percentage of homeowners reaches about 80%. Most people in this side of Europe prefer to just simply rent out their homes. But this is of course changing, as people understand the potential of making money in one’s own home.
In all of Germany it seems Berlin apartments are the most popular and sought after. This amazing city offers it all the extremely good potential due to the sometimes surreally low prices in comparison to the rest of Europe. Traditionally most Berliner’s preferred to rent rather than to own, their Berlin property. About 86% of Berliners who choose to have flats in Berlin as opposed to be a house owner. Despite of the low interest rates and in-expensive properties most decided to purchase, however, there is a shift and people can clearly see that this amazing city offers great investment potential, compared to all other European cities
Aside from being a popular and international location, Germany houses about seven million foreigners and a lot of their active communities are made up of foreigners. It seems there are large communities of Japanese people and Koreans living around Frankfurt while a lot of Chinese groups in Hamburg. Seventy percent of German workers can speak the English language well. Hence, when it comes to workforce, Germany offers lots of jobs and highly exceptional work opportunities. They are popular for the “dual system” setup, wherein school and workplace training are combined into one to produce better employees and productive individuals.
Germany and in particular Berlin are home to a lot of research institutions and units that are responsible for coming up with almost 277 international patents, transporting innovative products all around the globe. Berlin is also packed with high quality infrastructures like roads and airports to guarantee smooth travel connections and accessibility. Communications infrastructure is also very much in demand throughout the place.
Germany is a secure place for investment due to being well protected with its solid legal security and reasonable laws on guard for its citizens. Its very own legal system has even been a model that was followed by other countries. In further studies, it was discovered that the legal security of Germany has been highly considered by a lot of financial experts and investors.
Investing in Berlin
Investing in Berlin
Ever wonder why you are hearing so much of Berlin recently? Why there is a sudden rush for investors to investigate the place which maybe before had always been overlooked?
It is because Berlin is the new gold mine in terms of real estate investment. Berlin properties are very much affordable compared to Budapest, Prague and Warsaw. As a matter of fact, a lot of Berlin property for sale is considered to be the least expensive in the entire continent of Europe. How affordable you ask? There are properties that will only cost you as little as 1,000 Euros per square meter. Compare that to London and Paris that have more than 6,000 Euros per square meter.
Berlin is a place that you can enjoy for a week of vacation and it is also a place you eventually see yourself living. The influx of tourists has been an astounding 16% increase in 2007. The flights are now competitive enough that anyone who wishes to visit Berlin can now do so. The city increases in popularity among travelers since the Berlin wall has been torn down. Now, Berlin is the hip place to visit with its world class hotels and interesting nightlife. Plus the presence of the country’s finest beer does not hurt as well.
The low cost of Berlin flats and Berlin houses is complimented by the high investment returns of the area. The reported ROI for properties in Berlin are higher than that in the United Kingdom. For example you invested in a block of apartment. You can earn 4 percent to 10 percent from the original value of the property with only 4 to 5 percent mortgage rate to worry about.
Speaking of mortgages, Berlin has lower rates than the United Kingdom as well. They can have as low as only 4 percent fixed mortgage rate over a number of years. The banks are typically welcoming when it comes to new investments. Bank financing is easy to obtain and they are willing to lend 50 percent up to 60 percent of the valuation of the property. High return and investment and low interest rates, the combination of both makes the real estate market in Berlin as one of the most attractive in the world.
When Investing in property, in the back of one’s mind is the worry of finding a tenant for your property. This will not be a problem in Berlin. Apartments in Berlin are typically rented by families and over many years. Expect long term residential tenants in Berlin if you wish, or decide to let out short term to professionals (and achieve a strong ROI). Sometimes, even the children of the tenants continue to live in the houses or apartments. You will not have a problem making the tenants stay in your property, the problem is when you want them to leave. However, this translates to a very reliable rental return for the investor in the long run.
The economy of Germany as a whole will back you up concerning your Berlin property investment. German economy is now one of the most stable in the world. It is the fifth largest economy worldwide and they produce the highest gross domestic output within the EU. If you want a sound, reliable and profitable investment, it is time to turn your focus in Berlin.
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Berlin The Capital Of Investment