Berlin Real Estate

Residential Rent Development in Berlin 2009

2009-06-05T07:53:00.000-07:00

The Berlin Rent Table 2009 was published this week (see also yesterday's blog entry). The average increase of the net rent was 4 ct per sqm per month annually for the last two years since the last rent table, that is 1.7 % for the 2-year-period. In the same timespan the utility cost and heating (Betriebskosten und Heizkosten) increased on average by 5% to 2.35 Euro per sqm per month. Basically the increase in those ancillary costs is taking away the option for higher rent increases. Here should be an angle for optimising the performance of properties through Property Performance Improvement.

A more detailed analysis of the rent development in different market segments shows an interesting difference in the development of the net rent: The increase in rents for small apartments < 40 sqm over the 2-year-period was 5.3% to 5,41 Euro due to increased demand in that period. These apartments were especially popular with "New-Berliners".
For apartments between 60 to 90 sqm the increase was below average at 0.9 % for two years. This segment is still very low at 4.71 Euro per sqm compared with Hamburg at 6.53 or Munich at 9.90 Euro. Some segments have seen above average modernisation activities and thus above average rent increases. This applies to buildings from 1919 to 1949, 1950-1955 and 1973 to 1983 (the latter for ex West-Berlin). Here the increases were between 3.8 and 3.9 %.

The variation in the different market segments shows that a good asset strategy will yield better returns, even in times of slower rent increases. For support of the development of a successful property or portfolio strategy contact Berlin Portfolio Ltd.

Berlin Rent Table 2009 "Mietspiegel" published

2009-06-04T09:07:00.000-07:00

During the past two years, average rents in Berlin have risen each year by only 4 cents/sqm/month. For an apartment without rent control, the average monthly rent in Berlin is now €4.83/sqm without heating and utilities. Very small apartments of less than 40 sqm had an above-average rent development of 5.3% to €5.41/sqm per month. These conclusions were drawn from the new, qualified rent index for 2009 which has been accepted by all six lessor and tenant associations for the first time since the year 2000. Apartments in houses built between 1973 and 1983 in western districts and new buildings constructed since 1991 are also above the average. Rents in the latter buildings rose by 1.5%, from an average of €6.58 to €6.68 per month. For the first time, the rent index also takes the energy efficiency of buildings into account.

Here is a link to the download from the official Berlin Senate website.

For Property Performance Improvement follow this link.

Marketing starts for two luxury residences in Berlin

2008-09-11T05:00:00.000-07:00

Cologne-based Vivacon AG has launched the marketing of two large-scale projects in Berlin that have a total volume of €172mn.
Under the name “yoo Berlin,” 100 designer apartments from the board of Philippe Starck are to be developed on the bank of the River Spree for approximately €77mn. A single, ten-story building with a total of 13,200 sqm of living space and a futuristic glass façade is projected. Commencement of construction is scheduled for September and completion for the end of 2010.

Marketing has also started for the €95mn project called “Luisenstadt”. According to architect Annette Axthelm’s plans, some 310 luxury apartments and town houses with a total of 26,000 sqm of living space are to be developed on an area measuring some 12,000 sqm between the Spree and Köllnischer Park. The core of the project is the revitalization of the landmarked former AOK insurance headquarters called “Haus Luise”.

For more information on luxury apartments and townhouses please go to www.city-of-berlin.info/services.htm and indicate Haus Luise as your interest.

Rented 100 sqm Office Unit in Berlin for Sale 170,700 Euro

2008-09-10T05:05:00.000-07:00

Investment in Commercial Property in Berlin-Steglitz: 100 sqm office unit, new 5-year-contract with long term tenant, 11,200 € net rent p.a.
Ground floor in a turn of the century (1900) mixed commercial / residential building. The unit is accessible directly from the street. The building is well maintained and managed. A parking space is included.

Details available here: Commercial Properties

An excellent opportunity as finally Berlin has assumed its special situation as the capital of Europe's biggest economy. According to Aengevelt in contrast to other regions in Berlin demand for office space has grown. Also see: Berlin Office Market Shows Resilience in this Blog.

Berlin Office Market Shows Resilience

2008-09-07T06:39:00.000-07:00

Berlin Office Market shows strong resilience in current slow down. It seems that finally Berlin has assumed its special situation as the capital of Europe's biggest economy. According to Aengevelt in contrast to other regions in Berlin demand for office space has grown.

The German Property Market has established and reinforced its position as a secure investment destination with Berlin at the top of the list for future value in commercial properties as well as residential properties. In the wake of the increased demand rent has gone up in the top segment by 5% from 21 €/sqm/month to 22 €. In the middle segment increases were ca. 6.5% from 15.50 to 16.50.

Berlin Investment Apartment 40,246.80, net yield 6.55%

2008-04-06T05:19:00.000-07:00

Investment Apartment in Berlin

Gallwitzallee 73c, 12249 Berlin-Steglitz (Lankwitz) near Gemeindepark. 1958 apartment block, modernised 2000-2005. 1 room, 30,49 m² with west balcony. Monthly net rent 219.53, owner's cost per month 37.87 €.

Net rent 2,634,36 € p.a.
Price: 40,246.80 € (6.55% yield)
Commission: 0,00 €

Berlin-Steglitz
This district has a large proportion of high quality property in the housing segment of the Berlin property market as well as business property and one of the biggest shopping high streets at "Schloßstrasse". Its green but well accessible location and middle-class population has made it a preferred region and has provided a stable development since the time of the divided city.

It will benefit from the development of the new Berlin Brandenburg International Airport at its southern border to be opened in 2011.
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Bi-lingual (German/English) financing support is provided. To order more information and exposé click here: Investment Apartments in Berlin-Steglitz
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Berlin Investment Apartment 64,139 Euro, 6.36% yield

2008-04-02T00:02:00.000-07:00

Investment Apartment

Binger Str.68, 14197 Berlin-Wilmersdorf

The apartment is on a well maintained apartment block in a preferred location in the district of Wilmersdorf. During the division of the city Wilmersdorf has developed into the noble district of West Berlin with the Villa Quarter Grunewald and the residencies in Dahlem. The location of the property is 1.5 km from the Kudamm (Kurfuerstendamm) with its upcoming renaissance through major international investments. Public transport is within walking distance and the city center is accessible within 10 minutes.

Net rent 4,081,56 € p.a.
Price: 64,138.80 € (6.36% yield)
Commission: 0,00 €

Berlin-Wilmersdorf

This district has a large proportion of high quality property in the housing segment of the Berlin property market as well as business property. Its central location and middle-class population has made it a preferred region and has provided a stable development since the time of the divided city. Relatively low yields can be expected here as investors looking at these locations know that in the mid to long term perspective this will be more than recovered by the value increase.
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Bi-lingual (German/English) financing support is provided. To order more information and exposé: click here
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Abu Dhabi investors buy into Berlin City West

2008-03-31T00:54:00.000-07:00

( dpa )- First it was Potsdamer Platz which was redeveloped, after the communist Berlin Wall was cleared off it.

Now, it is the turn of the heart of former West Berlin, near the war-ruined Memorial Church and Zoo Railway Station, to attract international investors.

Abu Dhabi and other emirates investors plan to plough millions of euros into a major revamp of what used to be the central business district of West Berlin in the bad old days of division.

Architects are planning a spate of new buildings around the Zoo Station and the high-rise Europa Centre shop and office complex nearby, and along a shopping stretch near the modern, blue-glazed Memorial Church.

As it is, Berlin's skyline is already set to change dramatically with construction later this year of a spectacular 120-million-euro (175-million-dollar) Giant Wheel, Europe's biggest Ferris wheel.

Although long-distance trains no longer halt at the Zoo station - they stop instead at the capital's new Hauptbahnhof station - a scheme to modernize the run-down station complex and other buildings in the vicinity is now programmed.

The Harvest investment group from the United Arab Emirates will be spending up to 200 million euros on a development, the Zoo Fenster , across the way from the Memorial Church.

The church, a popular stop with tourists, is a Lutheran church shattered during the Second World War onslaught on Berlin and rebuilt incorporating some of the ruins as a dark reminder of the evils of war.

The church is in the headlines, with campaigners seeking to raise 3.5 million euros for urgent repairs to its crumbling tower. Berlin's city government has promised 1.5 million euros towards the bill.

The high point of the Zoo Fenster project will be a 120-meter-high skyscraper. A premium hotel is also planned by 2010.

Important Abu Dhabi investors involved in the project predict a dramatic increase in commercial property values in the western downtown districts of Charlottenburg and Wilmersdorf in the coming years.

In a separate development, there are plans for the city's Schimmelpfeng Haus , a building built over the Kantstrasse , to be replaced by a 120-metre-high hotel, office and business complex, a brainchild of Casia Property Management

All told, an estimated 1 billion euros is being spent on the "City West" renewal project, including 300 million euros devoted to projects around the Zoo Bogen building estate.

As part of the revamp operations, the Budapester Strasse traffic tunnel near the city's Breitscheid Platz has been filled in, repaved and plastered, giving visitors easier access to the city's familiar high-rise Europa Centre shopping-residential complex.

It is here that Europa Centre operator Christian Pepper has spent 60 million euros modernizing the popular shopping haunt.

Investor interest close to the Kurfuerstendamm , Berlin's most prestigious shopping strip, is helping boost business confidence throughout the city's central Charlottenburg and Wilmersdorf districts.

For a period after the city's 1989 reunification, the Kurfuerstendamm appeared set to lose out, as a host of cinemas, theatres and restaurants went out of business.

The Kurfuerstendamm - Kudamm for short - still glittered at night but much of its old flavour and tang had dimmed in the 1990s, as talk focussed on the east with the reinvented Potsdamer Platz , the new Friedrichstrasse shopping malls, and the revival of the communist-era hub, Alexander Platz .

Now, that is less the case. The Kudamm has recovered much of its old glamour and assertiveness in the past three years, as new high-end shops open and its pavement cafes, restaurants and pubs win renewed popularity.

"The Kudamm is very much back in the frame, popular with Berliners and foreigners alike," say Berlin's mayor Klaus Wowereit , who now lives in an apartment overlooking the boulevard.

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One way to participate in this development is through Investment Apartments in the districts of Charlottenburg and Wilmerdorf. Currently there are offers in these areas available at:
www.city-of-berlin.info/InvestmentApartments

Renovation Apartment 31,194 Euro in Berlin-Kreuzberg

2008-03-29T04:18:00.000-07:00

Renovation Apartments

Fichtestr. 32 in 10967 Berlin Kreuzberg. Kreuzberg is the young and trendy area in ex West Berlin. Period apartment block, currently being modernised. Wonderfully restored stucco facade in one of the most sought after streets in the Kreuzberg area. Fichtestrasse is a wide but calm side street with lots of trees.

25 apartments in sizes from 35 sqm to 132 sqm, renovated or unrenovated.

Example: 1 room, 34.66 m². Price 31,194.00 €, unrenovated or 55,456.00 € renovated.
(Plus commission)

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Bi-lingual (German/English) financing support is provided. To order more information and exposé: click here
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Flats in Berlin - Market development in 2008

2008-03-24T02:23:00.000-07:00

In 2008 we will see an increase of so called "privatisations" where international investors who have bought big residential portfolios are selling off individual apartments either as vacant condos for own use or as buy to let investment apartments. Especially the investment apartments were modernised throughout recent years and provide a dependable income source.

In combination with the rental development this will open excellent investment opportunities for private investors in a robust and steadily developing market. The new rent table 2007 ("Mietspiegel 2007") has already shown increases in residential rents.

Property Financing

The financial sector has finally recognised this development and provides financial products to enable international private investors to have their investment apartments in Berlin financed at a level of 65 to 70% of the purchase price. Support for the financing of investment in buy to lease flats is provided by capable agents and vendors.

Management of buy to rent flats

Identified managing agents that are capable to communicate with international investors at the appropriate level of language and professionalism to ensure a smooth start-up after any purchase is a very important part of setting up a successful investment. Adequate support for the international investor is key for an investment decision.

Conclusions

The economic situation in Germany is positive with the prospect of a longer period of prosperity. The Berlin property market has three main value drivers:

1. Stable population development accompanied by new jobs.
2. Long term commitment to the location by the government and international business.
3. Still low prices compared to other European capitals with yields that allow a positive cash flow after financing.

Investment Apartment 48,840 Euro 5.27% yield, Berlin-Steglitz

2008-03-22T04:05:00.000-07:00

Investment Apartment

Gallwitzallee 67, 12249 Berlin-Steglitz (Lankwitz) across the street from Gemeindepark. 1959 apartment block, modernised 1999-2004. 1 room, 37 m² with balcony. Net rent 214.60, plus ancillary payments by tenant 70.57, gross rent per month 285.17 €, cost per month 117.44 €. Price 48,840.00 €, yield 5.27%.

Steglitz-Zehlendorf
This is a middle-class area traditionally popular before the re-unification of Berlin. Here you will find the second highest rent level in the Berlin property market after Charlottenburg-Wilmersdorf. The area has a good social structure, attractive green neighborhoods and very good public and individual transport connections to the city center. Investments here have always proved being particularly sound and stable.
It is more differentiated though as it reaches from the inner city noble quarters in Dahlem to the city limits in Lichtenrade near the new airport Berlin Brandenburg International.

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Bi-lingual (German/English) financing support is provided. To order more information and exposé: click here
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Investment Apartment 51,216 Euro 6.33% yield, Berlin-Wilmersdorf

2008-03-22T02:53:00.000-07:00

Investment Apartment

Wittelsbacher Str. 4 10717 Berlin-Wilmersdorf 7 walking minutes from Kurfürstendamm. 1926 apartment block, modernised 1999-2000. 2 rooms, 38.8 m² with balcony. Net rent 270.28, plus ancillary payments by tenant 94.97, gross rent per month 365.25 €, cost per month 145.38 €. Price 51.216.00 € (6.33% yield).

Charlottenburg-Wilmersdorf

Berlin Investment Apartment, 65,894 Euro, 5.09% yield

2008-03-22T01:20:00.000-07:00

Investment Apartment
Olbestr. 14, 10589 Berlin-Charlottenburg near Schloss Charlottenburg (castle) with its popular park. 1930 apartment block, modernised late 1990's. 1 room apartment, 49,92 m² with balcony. Net rent 279.55, plus ancillary payments by tenant 82.53, gross rent per month 391.76 €, cost per month 157.90 €.
Price 65,894.40 €

Charlottenburg-Wilmersdorf

This district has a large proportion of high quality property in the housing segment of the Berlin property market as well as business property. Its central location and middle-class population has made it a preferred region and has provided a stable development since the time of the divided city. Relatively low yields can be expected here as investors looking at these locations know that in the mid to long term perspective this will be more than recovered by the value increase.
To order more information and exposé: click here
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Investment Apartments in Germany -- High Court Ruling on Rent Pool and other Guarantees

2008-03-16T07:13:00.000-07:00

A vendor of investment property with a rent pool has to state all costs and risks likely to be incurred by the investor.

Background:

The vendor (defendant) buys and renovates apartment blocks to divide them into condos and sell those individually. An investor (the plaintiff) bought such a property and joined the rent pool. He demands the contract to be reverted and the purchase price plus damage to be paid back. He claims incomplete and wrong information in the sales process.

Ruling:

The vendor is in violation of providing the required information if claiming to positive expectations with regard to the return on the investment. This applies when the investor joins the rent pool at the recommendation of the vendor. The risk of repairs and vacancy in other apartments has to be quantified and shown in the calculations and not only mentioned on the side.

While advising on property as an investment the expected cost is a key figure in the calculation. It has to demonstrate that the vendor not only is in the position to buy the property but also to maintain it. The investor can assume that the vendor has included all risks in the calculation. Vacancies or repairs at a normal scale should not immediately reduce the yield promised at the purchase.

BGH ruling 30.11.2007, V ZR 284/06

Comment

As a reaction many vendors working with such a system have tried to solve the problem by providing a guarantee. The intention is to picture a higher value than the actual value at the time of the offer and thus demanding a price higher than the current actual value. Here are some questions to ask when considering such a purchase:

Rent pool: Demand to see the actual rent of your investment apartment and find out whether you are subsidizing less valuable apartments or you are given a higher rent than your apartment actually earns and you pay the difference that you receive over time out of your over priced purchase price.

Repairs guarantee: What is the actual state of the apartment you are buying? Do not buy based on a viewing of a renovated apartment with the promise that this is how your apartment will be at some point in the future. Why not bring it up to standard and sell it then?

Management cost guarantee: How much does a management cost guarantee help if you are not satisfied with the performance of the property management? Does it cover the cost of a management that you prefer?

These guarantees deflect that you are investing in a property with an inherent set of risks. The approach to try to talk away these risks is deliberately misleading. If you are not comfortable with property investment choose a different type of investment. If you want a property investment with all its great opportunities and some risks than make sure you have all the true information and not pay above the market for some questionable guarantees.

What happens to the guarantee when the vendor goes out of business? Bank guarantees are usually offered but they only make up a fraction of the total obligations.

As a side line let me mention that some of these constructions will be scrutinized for tax reasons. It might be seen as not being a property investment with implications for write off privileges and long term capital gains.

Recommendation

Do not let guarantees deflect you from inspecting all aspects of the apartment you are actually buying!

Uwe Falkenberg, the author is a Berliner and active in the German property market for more than 25 years. Experienced as project manager, developer and head of the German Business for a UK based property consultancy he now owns and operates Berlin Portfolio Ltd His international background and local expertise is an ideal combination for an international investor. For Property Search we recommend Properties in Germany

Berlin-Wilmersdorf, Buy-2-Lease Apartment 51,200 Euro, 6.34% Yield

2008-03-16T01:01:00.000-07:00

Berlin-Wilmersdorf. Wittelsbacher Str. Buy-to-Lease apartment 38,80 sqm, 2 rooms, kitchen, barhroom, balcony. Modernised, 51,200 €, net rent p.a. 3,244 €, net yield 6.34%.

Charlottenburg-Wilmersdorf

This district has a large proportion of high quality property in the housing segment of the property market as well as business property. Its central location and middle-class population has made it a preferred region and has provided a stable development since the time of the divided city. Relatively low yields can be expected here as investors looking at these locations know that in the mid to long term perspective this will be more than recovered by the value increase.

To order more information and exposé: click here

Berlin Residential Property Market -- Why invest in 2008?

2008-03-02T11:13:00.000-08:00

The economic environment

The outlook for the German economy is positive and the economic upturn is continuing. 2008 will see a change from purely export driven growth to more growth support through domestic demand. For the first time in years significant raises in salaries are currently negotiated and the consumer climate can be seen as friendly. This will be associated with further reduction in unemployment, as companies are prepared to take on staff. Growth in the economy can be expected to stimulate the German property market.

The Local Aspect

In 2006 the Berlin economy grew by 1.9 % and 7,000 new jobs were created. While the growth is below the German average the increase in jobs and decrease in unemployment is well above the average. These figures reflect that numerous businesses have decided to grow their business in Berlin or set up new offices and branches here. The focus is on media and innovative technology.

The population is stable at 3.4 million after a period of migration in the 1990's into the newly available suburbs after the fall of the wall.

The German Property Market

Germany has seen a major influx of international capital to its property market over the last 2-3 years with record year 2006 which was considered a record year still being outranked by 2007. The year 2008 is seen by most market players as a year of consolidation. Increasing numbers of institutional investors will become sellers which should offer interesting opportunities for smaller and private investors as it is unlikely that all sales will be in large packages.

The Berlin Residential Property Market

After years of stagnation the Berlin property market has started a boom phase in 2006 which has carried on into 2007. Especially international investors have absorbed record numbers of undervalued properties. The turnover in 2006 went up by 50% to a record value of 15.8 billion €. Naturally this has led to a price increase the initial yields of 8 to 10% are not achievable any more in acceptable locations. The yields in top locations are below 6% whereas good locations like Steglitz still produce offers between 6.5 and 7%, many of them with short term development potential (upside).

The new rent table 2007 has already shown increases in residential rents. The picture is differentiated though.

Is it not too late to jump on the train?

No, it is not too late! Attractive property, even at entry level is still coming into the market, with positive cash flow and a realistic expectation for capital appreciation. Careful research is required to make sure the information provided is met by the reality after the purchase. Market knowledge is required or support local is recommended.
Conclusions

The economic situation in Germany is positive with the prospect of a longer period of prosperity. The Berlin Residential Property Market has three main drivers for income improvement:

Stable population development accompanied by new jobs.
Long term commitment to the location by the government and international business.
Still low prices compared to other European capitals with yields that allow a positive cash flow after financing.

With a follow-up article I will provide information about the rent in different parts of Berlin and the different types of buildings. You will find this article on http://berlin-realestate.blogspot.com.

Uwe Falkenberg the author is a Berliner and active in the German property market for more than 25 years. Experienced as project manager, developer and head of the German Business for a UK based property consultancy he now owns and operates Berlin Portfolio Ltd His international background and local expertise is an ideal combination for an international investor. For Property Search we recommend Properties in Germany

Berlin-Mitte Apartment Block 1,700,000 € yield 5.4 %

2008-02-22T00:25:00.000-08:00

Berlin-Mitte, "Arconaplatz Quarter", central location in Mitte, 1910/2000 mixed residential and commercial Apartment block, 1,040 m² + 113 m² commercial, 5 floors, 20 apartments, 1 commercial units. Thoroughly modernised, good maintenance standard. Fully let, net rent ca. 91.800 € p.a., asking price 1,700,000 €, factor 18.5, net yield 5.4% (plus commission)

More information and exposé: click here

Berlin-Kreuzberg Apartment Block 2,400,000 yield 6.8%

2008-02-22T00:14:00.000-08:00

Berlin-Kreuzberg (Mitte) near "Bergmann Quarter", central location in Mitte, 1900/2000 mixed residential and commercial Apartment block , 1,840 m² + 365 m² commercial, 5 floors plus roofdevelopment, 29 apartments, 3 commercial units. Thoroughly modernised, good maintenance standard. Fullylet, net rent ca. 163.000 € p.a., asking price 2,400,000 €, factor 14.72, net yield 6.8% (plus commission)

More information and exposé: click here

Berlin-Steglitz 1,350,000 € apartment block 6.9% yield!

2008-02-21T21:41:00.000-08:00

Property investment opportunity in the Berlin real estate market
Location:
The property is located in a sought area of the borough of Steglitz, within walking distance of one of Berlin's major shopping streets "Schloßstraße", yet quiet and green. U‐Bahn (Subway), S‐Bahn (regional train) and buses are accessible within minutes. City West (Kurfürstendamm) can by reached in 12 minutes and Potsdamer Platz in 20 minutes by public transport. An entrance to the city's motorway network (Stadtautobahn) is within 1 km.
If you click on the link below it will show the area on Google Maps, the green arrow does not indicate the property. Please click the back button to return to this page:
Berlin‐Steglitz Schloßstrasse Area
The Building:
The 4 storey apartment block was built in 1958. It has 18 apartments, oil central heating and full
basement . All apartments have balconies. All but 2 apartments have modern fitted kitchens, the remaining 2 have kitchen sinks and stove. All but 2 apartments have modernised bathrooms, 2 of them at luxury level. The building is in good upkeep and was regularly modernised. It is fully let.

Year of construction: 1958
Plot size: 1,185 m² (incl. 550 m² garden)
Heating: oil central heating system
Apartments: 18
Rentable space: 1,095,93 m²
Actual net rent: ca. 93,341 Euro
Asking price: 1,350.000 Euro
Commission to be paid by buyer: 6% of purchase price
plus VAT (19%)

More information and exposé: click here

Leipzig , 1,150,000 €, 6.85% yield Residential and Commercial Building, Centre South

2008-02-20T11:21:00.000-08:00

Why Leipzig?

Leipzig is next to Dresden the main economic centre in the state of Saxony. Saxony has seen the strongest economic growth in all of Germany, West Germany and ex East Germany combined.

Investment has been poured into the city over the last decade to ensure it is at the forefront of Germany’s economy. Big companies like Porsche, BMW and DHL have brought new investment with thousands of new job into the city.

More than 80% of the residents of Leipzig live in rented accommodation. Owning property is becoming a means for retirement plans.

Location:
The property is located in a sought area of the "Zentrum Süd" (Centre South) of Leipzig within walking distance of the city centre. Public transport, shopping, schools and kindergartens are in the immediate vicinity. Many tenants work at the nearby University Clinic.

Property:
The building was built around 1900 and extensively renovated in the middle of the 1990's. Granite floor on the stairs, lift and new district heating, as well as modern bathrooms.

More information and exposé: click here

Renovation Apartment block 1,050,000 € in Berlin-Schöneberg

2008-01-28T08:32:00.000-08:00

Berlin-Schöneberg, Apartment block with 25 apartments plus 3 planned. 12 apartments vacant for refurbishment. Planning and cost concept available. Net rent currently 24,300 €/p.a., after refurbishment 149,000 €/p.a., 1,460 m² + 300 m² planned roof development, price 1,050,000 €

Information on Berlin-Schöneberg

For information request:

Renovation Property

Berlin-Wilmersdorf, 6.0 mio. €, factor 18.2, Commercial and Residential Real Estate Investment

2008-01-28T02:20:00.000-08:00

Mixed commercial and residential property in Berlin-Wilmersdorf close to Kurfürstendamm, 6.0 mio €, factor 18.2 (plus commission).

Information on Berlin - Wilmersdorf

Request property information at:
Berlin Residential Property
Berlin Commercial Property

Leipzig, Apartment Building, 285,000 €, net yield 8.33 %

2008-01-28T02:17:00.000-08:00

Leipzig-Schkeuditz, Apartment building with 6 apartments near DHL European air logistics hub, BMW and Porsche. Net rent 23,752 € p.a., price 285,000 € factor 12.0, net yield 8.33%(plus commission)

Information on the Leipzig area.

Request information at:
Residential Property

Berlin-Wilmersdorf, 655,000 €, Residential and Commercial Investment

2008-01-28T01:50:00.000-08:00

Berlin-Wilmersdorf (Schmargendorf), central location near Kurfürstendamm and Grunewald, 1898/1995 Apartment block,359,15 m², 3 floors plus roof development, 5 apartments, 2 commercial units. Good maintenance standard. Net rent ca. 41,550 € p.a., asking price 655,000 €, factor 15.76, net yield 6,34% (plus commission)

Information on Berlin - Wilmersdorf

Request property information at:
Berlin Residential Property
Berlin Commercial Property

AFP: Berlin edges towards property boom second time round

2008-01-27T05:25:00.000-08:00

BERLIN (AFP) — Some of the cheapest housing of any major European city is attracting a wave of foreign buyers to the German capital, promising a new property boom after a false start after the fall of the Berlin Wall nearly 20 years ago.

Buyers from Britain, Scandinavia, Ireland and the United States are leading the rush to snap up flats in the once-divided city, making the 12 months up to November last year the busiest on the property market since World War II, estate agents say.

Foreigners were responsible for 70 percent of the transactions, the German federation of estate agents said, with Danes spearheading the march. The interest is so high that Danish estate agents have opened offices here.

One Danish agent, Esben Tjalvi, said Danes found the prices too good to resist.

"At 1,500 to 2,000 euros (2,200 dollars to 2,950 dollars) per square metre, it's up to four times cheaper than in Copenhagen and Stockholm," Tjalvi said.

"People are buying what they can't afford at home."

But private investors alone do not account for the eye-popping 28-percent rise in turnover in the first half of 2007 -- that is thanks to the muscular presence of investment funds, once a rare feature in the Berlin property market, that are snapping up dozens of apartment blocks.

Cerberus Capital Management and Goldman Sachs' Whitehall fund have invested 2.1 billion euros since 2004.

"In Berlin, the price per square metre is one of the cheapest of any major city in Europe, including those in eastern Europe," said Andrea Magnoni, the Italian co-founder of the Valore fund.

"The return for investors is higher than anywhere else at between seven and eight percent compared to 3.5 percent in Milan because even if the rents are moderate the purchase prices are always low enough to guarantee a good rate."

Investors are speculating on rents rising.

"In the rest of Europe, 50 to 60 percent of people's salaries goes towards rent. In Germany, it is about 20 percent," Magnoni said.

The influx of investors to Berlin is having a marked effect on the landscape of the city.

Whole streets are being renovated without the city authorities having to dig into their already massively stretched finances. The decrepit flats with coal-fired heating and toilets on the landing are disappearing and new shops are opening where they were once rare.

This in turn is creating jobs, not only in the property sector but also in the building trade.

But Berliners fear that the property boom is threatening to change the character of a city that has always had a more alternative feel than its German, and many of its European, counterparts.

The once rare occurrence of tenants forced to leave so that the owner can raise rents is now becoming more common, some say.

And new luxury blocks of flats are mushrooming on the choicest roads, with prices well beyond the reach of most residents in a city where 11 percent of the population is unemployed and thousands of students and hard-up artists make their home.

Investors would also do well to remember that many people lost heavily after betting on sharp price rises after the Berlin Wall came down and communist rule disintegrated in 1989. In fact, prices fell.

Andrea Magnoni says investors back then were motivated by the promise of big tax breaks instead of solid economic reasons.

"But today the market is underpinned by genuine economic growth," he said.