Why invest in Berlin …?

29.05.2013 Real Estate no comments

Berlin is the capital of Germany, one of the countries that have traditionally been called “locomotives of Europe”. However, Berlin has been a city that has enjoyed the same economic ratios than the rest of the country, and its real estate asset prices one of the lowest in Europe.

But something has changed in recent times. Since 2006 has been observed a clear upward trend in prices, a trend that has increased in the last two years.

Just take a look at one of the data shown in GSW Report 2013 for the housing market to confirm the above.

The price increase for cheaper housing in Berlin in 2011 to 2012 was 56%. This increase was 7% in the higher-priced properties. Additionally, for the first time in history, the apartment prices have exceeded 1,000 euros per square meter in all districts.

But is it too late to invest in the property market in Berlin? No one can confirm or disprove this question categorically. However, all indications are that prices will continue to rise for a long period of time.

And this is for two reasons:

1) The expectation of a rise in inflation,
2) low interest rates for real estate-related loans.

If you join these two reasons, with a thrid one which is the low cost of living in Berlin … This suggests that there is still much potential for development and the prices continue to rise, at least until it matches with the major European capitals, for which … have a long way to go.


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