Why Buy Berlin Property

Major Factors Driving Property Prices For The Future

• Angela Merkel – Chancellor – Margaret Thatcher of Germany. CDU ruling party in both the upper and lower houses, so bills have no opposition. The Parties goals are to improve the country’s prosperity, and property is a major economic factor.
• Privatisation – Industries and property market, selling assets to reduce debt.
• Unemployment – Reducing by 5% & 15%. Biggest falls in 15 years.
• Finance – Financial products are made available available, (mortgages etc). With people now having the right to buy their property. Only 20% of Germans own, objective for 50% to own by 2017
• Tax incentives – Many Foreign investors are purchasing many properties, or even entire blocks of apartment due to Germany favourable property tax incentive – There is No Capital Gains Tax after 10 years.

Compare London/Manchester to Berlin/Munich

Imagine if property prices in Manchester were at 5K per Sqm and London was 2.5K per Sqm . What would be wrong with this scenario? Well obviously the prices are the wrong way around. The capital London as in all other capital cities across Europe will is where you will find the most expensive property.

Property in Munich is 3K sqm and Berlin is 1.5K sqm. SURELY THIS IS WRONG WAY AROUND !BERLIN IS THE CAPITAL CITY!
Berlin is the 2nd biggest capital in Europe only after London, another reason why Berlin Property prices should be much higher.

But let’s just say for example purposes that Berlin will only catch up to the prices that Munich is today within 10yrs time. Is that reasonable? YES! Of course it is! For Berlin property prices to just go from 1.5K to 3K sqm, or approximately to double in the next 10 years, that would mean an increase of only around 7% per annum.
And even then property prices in Berlin at that price in 10 years time would only match that of in Munich NOW!!!

Experts predict much great growth over the next 10yrs.

For further details on investing in Berlin Property please send an email to sales@berlinproperty.co.uk and an expert member of the team will contact you shortly.

Reasons to Buy Property in Berlin

  • There is NO Capital Gains tax on a property kept for 10yrs or more. This is an investors dream, buy your property now, keep it for the next 10yrs and when you come to sell, you’ll have to pay No capital gains.
  • Over time property prices tend to rise, so a property purchase is one of the best investments you can make. Stock prices have dropped and housing prices in many parts of the world have lowered also. This is not the case for Berlin; property is steadily on the increase, and is expected to for many years to come. Well let’s be honest, it couldn’t get much cheaper now could it!
  • There are some extremely good rental yields to be had in Berlin. Yields have been seen to be as high as 10%, and is easy to see why, when property prices are so low. Average rental yields in Berlin are at 4.90%, compared with the UK average of 4.12%.Germany is the largest economy in Europe and Berlin is the capital.
  • Property prices in Berlin are way below any other capital city in Europe. Berlin is the cheapest metropolis in Europe by a long way.

Prices based on a 120 sq-m apartment:

Moscow – 14,597 (Euros/sq-m)

London – 14,587

Paris – 8,485

Rome – 6,416

Dublin – 6,348

Athens – 5,501

Finland Helsinki – 5,883

Madrid – 3,970

Geneva – 4,324

Munich – 3,679

Berlin – 2,121

  • One of the most beautiful & greenest cities in Europe.

  • High employment levels.
  • The reinstatement as the Capital of Germany.
  • Reinstatement of parliament in Berlin.
  • Demand for Property in Berlin is on the rise, and supply is decreasing.
  • Public Transport is excellent. The city has developed a highly complex transportation system, which provides varied forms of urban mobility.
  • The Geographic Position of Berlin. Berlin is an extremely easy place to visit from many of Europe’s cities. Flying time from the UK is on average 1.5hrs, which makes it an easy destination to come to, for weeks away, or even a long weekend.
  • Extremely Low Entry Price into the Berlin Property Market. You can buy property in Berlin for as little as €40,000, or the same price as a new car in the UK.
  • Property prices are considerably cheaper in Berlin, than some other cities in Germany, and Berlin is the capital. Imagine property in Manchester, Liverpool or Leeds, being more expensive than London, how long will that continue to be the case? We at Berlin Property don’t think it will stay that way for too long.
  • The Arts, the entertainment & the cultural metropolis. Berlin has it all, and more. The city caters for everybody and offers everything you’d expect from a thriving capital city. to a night at the opera or classical concert, there is history galore, exquisite restaurants, water sports, or you could shop to you drop. As far as we at Berlin property are concerned, it’s the best city in the world.

  • The New BBI Airport being constructed. The BBI (Berlin Brandenburg International) Airport, being constructed currently and scheduled for completion in October 2011. It will allow passenger numbers in and out of Berlin to increase from a current maxed out 21 million passengers to 50 million passengers per yr.
  • Berlin is seen as a world renowned centre of first class higher education & research. Berlin has 4 universities, many private schools & colleges are available also. You have on offer through the City various levels of education and disciplines, to meet all requirements.

Berlin’s History:

1939 – 1945 (WWII)

The start of WWII in 1939 saw Hitler fighting the allies to the West and by 1941 Germany was battling with Soviet Russia in the East. Germany forces were split and stretched. By early April 1945 the Allies forces had pushed through Italy and on through West Germany. The Soviet Russia coming from the East, finally reached and stormed Berlin with the two forces meeting on the Elbe river on April 1945. The War for Hitler and Germany was over.

Come the end of the War Germany was split into both East and West Germany. Berlin was also split into an east and West Berlin. As the geographical boundaries of West Berlin lied within East Germany, West Berlin became a western exclave, with Bonn becoming the capital now of West Germany. East Berlin became the capital of East Germany.

1945 – 1961 (Berlin Split into 4 quarters)

All four Allies (Russia, UK, USA & France) shared ownership and responsibility for Berlin, but it was clear from the off that, problems lay ahead. Major political differences between the USA, UK & France to the West and the Communist East & Soviet Russia was the cause of problems over the next many years. As Cold War tensions grew, the Russian east blockaded West Berlin, and supplies had to be airlifted into Berlins Templehof airport from the West.

Berlin had been bombed tremendously during the war and following the years after the war very little investment and rebuilding was taken place to bring the city back to its former glory. Most new buildings tended to arise in the East, and were very typical communist buildings, 20 to 30 stories high. Housing was what could be best described as “bare necessity housing” for citizens after the war. It was difficult to improve the West of Berlin due to the stranded nature of the city, and although the East kept and restored many of Berlins most famous landmarks little further investment was made in East Berlin.

1961 – 1989 (The Berlin Wall & Checkpoint Charlie)

As East/West relations worsen, things came to a head and the Berlin Wall was erected, and the now famous Tank standoff, at Checkpoint Charlie in 1967 followed.  West Berlin was now well and truly separated. All road and rail links into West Berlin were cut off, and at the time it was not a pleasant place to live. Again there was very little investment or rebuilding.

Road and rail links in to Berlin were cut off and travelling throughout the city was controlled via strict checkpoints. It was not a pleasant place to live due to the continual tensions between the “Free West” and the “Communist East”. People from the west could travel east, but people from the east could not travel west. There was still no investment or rebuilding. However as we saw the decline of communism, and pressure from the East German people, the wall was eventually broken between the two facing sides. On the 9th of November 1989 the wall/divide came down, and the Berlin wall was subsequently demolished.


1989 – 2000

Come November the 9th in 1989, and through the will of the Eastern German people, who by now were tired of their communist lives, eventually they managed to break free of the Berlin wall. The wall was quickly demolished. In came democracy and a market economy.  And on the 3rd of October with East & West Germany reunited once more, and Berlin was made the capital of the Federal Republic of Germany. However the German Parliament (Bundestag) moved the West German capital from Berlin to Bonn. The German parliament which had its capital as Bonn (West Germany), was finally moved back to Berlin in 1999. The Country is now reunified. There is massive investment in infrastructure in Berlin, 75 billion Euro + is spent on new transport systems, government buildings. New office blocks go up all over the city, steel & glass skyscrapers, and there is lots of rebuilding. The East & West Economies are integrated. It is clear that the West German economy is very strong  but the East German very weak. Currency worked on 1 (West German)DM to 10 (East Germa)DM’s. Russian took everything of value out of East Germany when they left and at one point there were 18 million unemployed in the East. This of course put Germany under an enormous amount of economic strain and Germany eventually went into recession in 2000.

2000 – 2005

Germany in recession. CDU in Power. Recovery policies put in place.

2005 – 2009 +

German Recession is over! There are real signs of growth throughout 2006 & stronger in 2007. 2008 see’s stronger growth still. Property prices in some areas increase by as much as 25%.  Expects predict solid growth in property prices for Berlin, great potential over the next 10 years.