The German capital city of Berlin offers the international real estate investor a lot of opportunities, as prices are low but look to rise in the coming years. The market in Germany overall has been down for the past several years, but many analysts and investors believe things are on their way up and now is a good time to invest in property, particularly in Berlin.
While unemployment remains high, the German economy has been growing steadily and there are a number of bright spots. Major real estate investors and property management companies are looking at Berlin, particularly for long-term investments. One such company is Colonia Real Estate AG, a German real estate investment and management group. Like a number of property companies, this one has been buying up properties in the city. Recent acquisitions include a holding company that has a large portfolio of Berlin residences and commercial properties.
The expectation is for rental income and long-term capital growth. Stephen Rind, CEO of Colonia Real Estate AG, says that “As a result of the quality and the location of the apartments, an increase of the rental income by 12% is expected over the next three years. Additional acquisitions with a particular focus on Berlin, the west and south part of Germany are planed in the near future.”
Nicholas Marr CEO Homesgofast.com ‘The exciting element to the Berlin Investment Property market is that investors do not have to spend a great deal of money to enter the market. Berlin has a good choice of investment property for under £50,000. It is also clear that Berlin offers a strong rental market with many properties already housing long term tenants. It makes sense that at these prices along with the current demand that property prices will rise fast over the next 5 years”
Expatica, a news source for expats living in Germany, recently ran an article touting the situation in Berlin. Low property costs are providing an opportunity for excellent returns, and it notes that returns in Berlin “…are considerably higher than anywhere else in Europe.” One real estate expert likens the city to London nearly two decades ago: “The situation here is like London about 17 years ago, when for example no one would touch the Docklands with a barge pole,” said Philipp Tabert from the real estate agency Winters & Hirsch. Since then, the Docklands has undergone a revival and is now a trendy part of London. Look for the same thing to happen to much of Berlin in the coming years.
Considering Buying property abroad overseas property investors can save thousands by using a currency specialist for regular payments abroad and for large transaction.
Free Currency Consultation available by Moneycorp
