Berlin is providing investors with older properties that provide superb rental opportunities. Berlin housing market is great for investors as many Berliners prefer to rent than buy keeping demand for rental property high. Berlin does not seem a place to make a quick buck it appears to me a market that needs 5 years property ownership to reap the capital appreciation benefits.
An increasing number of people are living in the heart of the city, rather than the suburbs. This has led to a dearth of larger apartments and homes, and the older properties are filling the need. Larger lofts and converted apartments are becoming more and more popular, and developers are looking for opportunities to create these spaces for residents.
Many old Berlin factories are being turned into residential properties, according to a recent article in the
International Herald Tribune, and lofts are the designer’s choice. One of the largest conversions in the city has been the Paul-Lincke-Höfe project. This is taking an old factory in Kreuzberg, right in the heart of the city, and converting it into 116 lofts ranging from 80 square meters to 250 square meters.
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I have seen a steady flow of seasoned investors seeking property in Berlin. These guys are not interested in the quick buck they want to secure their futures with medium to long term property investments. So if you are seeking a quick turnover I would think twice about buying an investment property in Berlin. The guys that know all say the same thing Berlin is an opportunity to buy low priced investment property that will rent out immediately and will give you respectable returns on investment over 5 years plus.
So Why Buy Property in Berlin?
Berlin has kept low property prices while prices all around the world have been steadily increasing. This makes Berlin a viable market for those overseas investors looking to invest their money in Germany.
- Low entry level compared to other cities around the world
- Strong rental market
- Most properties already have long term tenants
- Demand is high as the property offer guaranteed rent Property prices expected to rise fast over the next 5 years Low entry level compared to other cities around the
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