Foreign Investor Support

Berlin Schönefeld Airport: Countdown

2011-09-27T19:00:00.001+02:00

3 June 2012 - Save the date! (the airport will open)

It is actually closer than we can all grasp. While the residents and the airport company are still fighting at court about routes and noise protection, the "hard ware" improves daily and nearly totaly unnoticed since the court battles get all the media coverage.

What is left to do?

The way from check-in counter to the bridges on the main and south pier facilitate treadmills, which are almost all already installed, not on the North pier.
The check-in is supposed to be ready by November 2011, also the security gates.
Test, tests and tests are being planned. From January on everything will be tested until May 2012, arrival, departure, security, the whole airport operations.
Public transport. There will be an underground S-Bahn (city train) stop in the airport and a connection from the current station of Schönefeld (yes, it is an existing city, not just an airport) to the airport. They still have to close the gap between those two stations.
The tower is currently being equipped with the latest technology. Beginning of 2012 the controlers will move to the new 72 meter high tower.

Do you want to test the airport in Berlin? They are looking for 10,000 volunteers. As of today they seem to have found enough, but if you want to register for the waiting list, you can do it here (only in German).

Successful Protest Against Airport Noise?

2011-09-26T15:22:00.002+02:00

The protests have been heard. Finally. But also one point is again very clear: somebody will be disturbed by the airport. But who? Will it again be an East-West discussion? The state of Brandenburg will re-plan the routes according to the SPD. This means actually nothing though German press is celebrating the stamina of the local residents. The citizens were demanding better protection against the noise and the court decided that they are eligible for soundproof windows and other protection measures.

The routes have been aproved in 2006 already. In 2011 they were presented to German Air Traffic Commission, a modified version and on 13 October the court will speak the verdict on the noise measure concept (and again modified routes?). Looking back to a decade of planning, one could think that Berlin is the first big city that is planning an airport but one can now understand why Germans see no value in the label "German Capital". Bonn was a little town, but functioning, the mony and the economy has always been spread mainly over Western Germany (even before WW2) and Berlin's planning is once more a subject especially Western Germans rather ignore (though 50% is contributed by the land of Brandenburg).

Just to remind you: the airport opens in June 2012. Supposedly.

Berlin Schönefeld Airport: Good-bye BBI, Welcome BER

2011-06-29T16:23:00.001+02:00

Finally. The aiport opening is scheduled for 3 June 2012 and the baby got the right name: BBI. Probably for the last 5 years people have been asking why they are still calling the new Schönefeld airport BBI, since this IATA code is long gone. It is the name of the Indian airport of Bhubaneswar.

How many names does BER actually have? Which is the middle name? Let's see:

"BER - Flughafen Berlin Brandenburg - Willy Brandt."

The latter looks good but nobody will remember it. The other Berlin airport, Tegel, is "Otto-Lilienthal". If you do not look out of the airport window before departure or after arrival you will never know.

We will watch closely the countdown to the end of Europe's currently biggest airport construction site.

BBI Berlin Airport: No Hub For Lufthansa

2011-06-29T16:07:00.003+02:00

Suprising news were published in May when Lufthansa said they would not invest into an expansion in Berlin; Frankfurt and Munich would be more than enough, but they would speak to their Star Alliance partners to fly to Berlin. In the past Lufthansa had said right the opposite. The new airport in Schönefeld, close to Berlin will open in June 2012. Last week the company had said that they want to "be more active in Berlin", but a decision would be taken in summer. What exactly does that now mean? More important: how will that influence the arrival and departure flight routes over the city. This is a subject that annoyed many Berliners that after many years of
planning nothing was sure and new flight routes were proposed.

The winner of the Lufthansa roulette could be AirBerlin. They are planning a hub in Schönefeld and chances are, they will stick to it.

Another new kid on the block is SCHENKER LOGISTICS. They announced today that they will move their Berlin office to Schönefeldin April 2012, the airport is supposed to open in June 2012.

Berlin: Backyard camping and indoor chalets for tourists

2011-03-21T13:55:00.002+01:00

Where else would you find such a crazy idea, manifesting and screaming for success if not in Berlin? The neighbors of the most hip areas of Berlin are not that happy anymore with all those tourists that are invading their streets, making them feel like animals in a zoo. In trendy Neukölln, this might also become the case where the "Hüttenpalast" (hut palace) will open end of this month. The idea is so unique that you just want to go and have a look at it. At what?
At camping in the back yard or the indoor chalets.

The Hüttenpalast is a hostel that offers camping vans for 12 people for 30 EUR /night /person. If you prefer something a bit more civic you can also sleep next door int the hotel for 80 EUR /night /room. Chances are, that this will be another success in the area, but many fear that tourists looking for party will at the end not help the district to appear more civilised.

Berlin: rents keep rising

2011-03-13T00:12:00.004+01:00

Last year, the rents in Berlin have increased on average by 4.5 percent. In the two-year comparison, rents soared, up nearly ten percent higher. This is from the residential market report presented yesterday by the housing company, GSW and the consulting firm CB Richard Ellis (CBRE).

"The Berlin housing market is very attractive," concludes GSW-chief Thomas Zinner. The main reasons for rent increases are according to CBRE evaluator Michael Schlatterer the low construction activity in recent years and the significant increase in the number of households. According to the report on the Housing Market by IBB also published this week ,
there are currently 165,000 households more in Berlin than a decade ago.

While in suburban municipalities such as Spandau and Marzahn-Hellersdorf the rents are stagnant or falling, the rents explode in desirable downtown locations. In the center, they rose in a single year by 13.7 percent, in Charlottenburg-Wilmersdorf by 10.7 percent. The existing tenants were not taken into account , but only the rents asked by owners in published ads.

Just a few miles lie between the areas, but rents separated worlds.
The upward trend is confirmed by further investigations. Jones Lang Lasalle (JLL) estimates the average rent increase in the second half of 2010 to 3.6 percent. Also according to the research institute Empirica apartment rents are rising in Berlin as strong as in no other German city.

Nevertheless, living on the River Spree is still much cheaper than in Hamburg or Munich: the average for new leases of GSW-residential market report put at € 6.11 per square meter.

The development of the housing market attracts investors. "Berlin is by far the largest apartment building market in Europe," says CBRE expert Schlatterer. Here, the investors are willing to pay higher prices again: The price per square meter of apartment buildings took last year to an average of 4.1 percent. Nevertheless, observers see no sign of overheating of the market. "Investors are currently buying a particular quality," says Schlatterer.

"But we have no housing shortage," said GSW head Zinner. "Especially in the lower segment the rents are still very tolerable." Other market participants see the not so relaxed: "Also the former low-price locations are getting more expensive," according to JLL. And the Association of Berlin-Brandenburg housing company wants the Senate to present a strategy how approximately 60,000 new dwellings can be built until 2020.

Western Germany: "Not so known" locations produce higher yield

2011-02-18T15:56:00.002+01:00

Institutional investors are traditionally looking for investments where the Germans earn their money: Munich, Hamburg, Düsseldorf, Frankfurt, Cologne, Stuttgart. What about the cities right next to those locations? The German managment magazine "Manager Magazin" published an interesting article yesterday (here in German o-version) in which they have a closer to look to where investors
really have opportunities.

My office is located in Berlin. Since I moved from Barcelona to Berlin in 2006 I have been telling my clients to not go down the path where they will have to shake hands with their direct competitors. So far I was not lucky in convincing them; therefore I am glad I can once again refer to a publication whose authors must have read my mind over the last years. But they go even further.
They are not saying "forget Berlin" (which is also not a really good advice), they tell you to take the calculator out and use it! You cannot help but ending up in cities like... Wiesbaden.

Use your calculator and have a look at Hamburg, Munich and Düsseldorf. It is difficult to earn 3% net at the end of the day. The winner of the study is:

Wiesbaden
Aachen
Freiburg
Frankfurt

The "loosers" of the study are:

Stuttgart (did not even make it into the ranking anymore)
Munich
Hamburg
Düsseldorf

German TV film on Tel Aviv

2011-02-10T13:14:00.001+01:00

This is a really nice overview about Tel Aviv's history:

Berlin Properties - Transactions by Foreign Investors

2011-01-20T22:43:00.006+01:00

We are proud to announce that the Foreign Investor Support (FIS) was involved in selling those 2 buildings in the last 6 months:

Torstr. 124 is located in one of the most sought-after districts, in Berlin-Mitte. It was sold by a Luxembourg based fund and purchased by an investment fund from the Middle East. The building is of mixed use and disposes of a subterranean parking.

Beusselstr. 5 is located in Berlin-Moabit, an upcoming subdistrict of Berlin-Mitte. The building is of mainly residential use but does have 2 stores in the basement. It was sold by a private investor and acquired by an investment fund from the Middle East.

If you are interested in Berlin properties that are for sale (apartment blocks, office buildings, etc), or you need help in managing your properties, please contact the Foreign Investor Support in Berlin: www.fis24.net.

Berlin: Rents are going up twice as fast as consumer prices.

2010-12-15T20:47:00.002+01:00

Berlin is facing a shortage in housing, consequently the rents are going up. What could be the solution? Again public construction? Wasn't it just a couple of years ago that the Senate demolished housing blocks? Now they could be used again. At least investors are happy. They can choose from a - sometimes long - list of applicants for a flat in the center of Berlin. What will happen to those living from welfare? Will they not find a place anymore? At least, this is sure, not in the center.

In many other cities this is not unusual, but Berlin is not used to such a situation. It is famous for cheap housing for everybody, for being gentle to the poor and the creative. Does this mean that Berlin has finally arrived in the club of serious world capitals? Yes. Also. And it will create an explosive social climate. The less wealthy are pushed towards the suburbs. Even if the whole situation means that Berlin is becoming richer (since it is becoming for the rich as it seems), it will take a long time until the poorer districts will benefit from this development.

In my opinion, investing in social peace is always worth it on the long run. And cheaper. But we need the real estate investors, too. Berlin owes THEM a big portion of the the positive change of the last 20 years. Most of them came from abroad and saw something that many Germans did not dare to dream of. They should be honored and not condemned.

What do you think the Senate should do about it? Please leave your comments.

Who will be affected by the future airport of Berlin (Schönefeld)?

2010-09-10T14:20:00.002+02:00

Three times as many landings as before will be the scenario the residents around Schönefeld will have to adopt to. But also Berlin will notice it. The following graphic had been published by Berliner Morgenpost Online on 10 September 2010

On Monday, the German Air Traffic Control Commission (DFS) presented for the first time the future noise impact to the mayors of the municipalities bordering Schönefeld. Adjustments of the routes are still possible. The opening of the new airport is now scheduled for 3 June 2012. After the meeting, it is clear that the routes will be over the center of Berlin. This is new to most Berliners.

But the commission for noise reduction has taken into account the worries of the residents. Two runways will operate in parallel. The machines will no longer start in a direct extension of the runways, but bent at least 15 degrees outside, so 2 machines can take off simultaneously. Communities like Blankenfelde, Diedersdorf or other villages in the west of the airport will be less affected than thought. Not Rangsdorf who will get more noise than expected.

The mayor of Großbeeren, Mr. Ahlgrimm, who is also the chairman of the "Protection of communities surrounding the airport Schönefeld" is pleasently surprised that the commission has tried to find a way to make the new airport noise as less aggravating. These changes will also affect the tenants for eligibility of noise reduction. Currently there are 25 000 households, or around 45,000 people eligible for noise insulation, such as the installation of soundproof windows. Those resident who have already been provided with new windows based on the planning of 2004 may no longer be eligible.

Not only the residents of remote communities and municipalities like Stahnsdorf and Teltow in the west or the east Erkner will be more affected, but also the south of central Berlin must now be expected to have increased air traffic and noise. Thus, unlike in the past many routes will fly over the districts of Friedrichshain-Kreuzberg and Mitte. There, however, the machine will fly at an altitude of three kilometers. Experts call this level "no longer noise relevat". In Stahnsdorf, Teltow or Erkner machines but have only reached an altitude of 1700 meters, so there will be more noise to be expected. In particular, the western part of the BBI will be charged more because the wind blows from the west and the machines start against the wind.

There might be many more windows installed than one would have thought.

Berlin Insider Tip: Französisch-Buchholz

2010-08-10T16:29:00.003+02:00

Properties in Berlin are becoming increasingly popular. On the northern outskirts of the capital French-Buchholz, part of Pankow, has become a popular residential area. Several thousand new homes in Berlin were created here, much of which are townhouses in looser construction, with spacious green areas with plenty of space for children.

French-Buchholz is also attractive due to very reasonable price for property in Berlin as the Berliner Morgenpost and Immonet.de. report. In the late nineties in French-Buchholz major new development areas were created, until then mainly medium-size apartment buildings were erected. The connection to the inner city is well connected by tram with the S-Bahn station Pankow-Heinersdorf as hub.

No wonder that French-Buchholz has become attractive of the years, especially for families with children. "For a beautiful environment, many residents accept long travel distances to their working places," says broker Jörg Ernst to the Berliner Morgenpost about the "district of no vacancy", "we manage more than 800 residential units and currently only five apartments are vacant. Of which others can only dream of Berlin neighborhoods. " The price-performance ratio in French-Buchholz is right - the net rents are here with at 5-6.50 € per square meter for new leases. Absolutely desired are penthouse apartments.

In the segment "private owned homes" French-Buchholz has developed magnificently. After the the wall came down there were hundreds of family homes, which lead to particularly attractive prices of less than 100 € for fully developed plots. Detached single-family houses with land are available with good facilities are available for 150,000 €, condos start at 1,200 € / sqm.

Green Buildings: European investors focus on sustainability

2010-08-10T10:23:00.000+02:00

The sustainable redevelopment is becoming more important and also the new development of "Green Buildings" stands for European property investors, high on the agenda. This is the result of the study "real estate investment in Europe" by Union Investment.

Sustainable building is all the rage - Thus, in addition to the redevelopment of the so-called "Green Buildings" is now also the sustainable redevelopment of the property portfolio to gain in importance. At least that's according to a study by Union Investment, the fund provider of the population and Raiffeisen beacons, the views of European property investors. In the context of "real estate investments in Europe" 185 real estate companies and institutional investors in Germany, France and Britain were questioned by market research firm Ipsos.

According to the result in 64 percent of respondents sustainability criteria inherent part of real estate investment strategy. In spite of the global financial and economic crisis caused fluctuations in the real estate investment markets is to be found also the investment interest in sustainable buildings continue to be very high: 62 percent of investors plan to invest more in the future sustainable buildings. Particularly French investors, according to the study in this regard are very committed.

55 percent of the participants also intends within the next twelve months into the new development of green buildings to invest - in the modernization or rehabilitation of their property portfolio in consideration of sustainability aspects, it is 52 per cent. The concept of sustainability is said to have a benefit for all: 54 percent of real estate investors are, therefore, believe that users and investors alike benefit of sustainable buildings. In fall 2009 found that only 46 percent of investors. Generally the mood is positive. Nearly 40 percent of investors believe that their countries have a market for green buildings developed - in the latest poll, only 26 percent.

More about Union Investment: http://www.union-investment.com/

Basic Information about Bankruptcy

2010-07-15T10:34:00.001+02:00

by: Justin Baxter

Deciding whether to file bankruptcy is a very serious decision. The majority of bankruptcies are precipitated by circumstances outside a person's control -- loss of a job, divorce, or significant illness. A recent study published in the American Journal of Medicine concluded that 62.1 percent of the bankruptcies were medically related because the individuals either had more than $5,000 or 10 percent of their pretax income in medical bills, mortgaged their home to pay for medical bills, or lost significant income due to an illness. On average, medically bankrupt families had $17,943 in out-of-pocket expenses, including $26,971 for those who lacked insurance and $17,749 who had insurance at some point. The stress of these events is compounded by collection letters and calls, and the fear of losing a home to foreclosure.

What is Bankruptcy?

When a person or business is mired under inescapable debt, they can petition for bankruptcy. Once the initial petition is filed, all collection efforts, including lawsuits, foreclosures, and garnishments must cease. After the bankruptcy judge hears the case, an order is entered which discharges most debts, or in the alternative creates a repayment plan.

The most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 of the Bankruptcy Code. The majority of consumer bankruptcy filings are Chapter 7 cases, and many cases that are filed as Chapter 13 bankruptcies are later converted into Chapter 7 cases.

In Chapter 7, a debtor surrenders his or her non-exempt property to a bankruptcy trustee who then liquidates the property and distributes the proceeds to the debtor's unsecured creditors. In exchange, the debtor is entitled to a discharge of most of their debt. Certain debts, such as spousal and child support, student loans, some taxes, will not be discharged even though the debtor is generally discharged from his or her debt. It is possible to reaffirm some debts, such a home mortgage or an auto loan.

In Chapter 13, the debtor retains ownership and possession of all of his or her assets, such as their home and automobile, but must devote some portion of his or her future income to repaying creditors, generally over a period of three to five years. The amount of payment and the period of the repayment plan depend upon a variety of factors, including the value of the debtor's property and the amount of a debtor's income and expenses. Secured creditors may be entitled to greater payment than unsecured creditors.

Benefits of Bankruptcy

The primary benefit of filing for bankruptcy is the ability of a consumer to get a fresh start from past debt. In addition, once a petition is filed, it will stop any collection activity, including any bills currently due for credit cards, medical bills, or other bills. It will stop debt collector calls and collection letters. It will temporarily stop a home foreclosure. Depending on whether the debtor files under Chapter 7 or Chapter 13, the final bankruptcy order can either discharge most of a person’s debts, or create a repayment plan to repay some or all of the consumer’s debts over a three to five year period.

Should You Hire a Bankruptcy Attorney?

Any individual can file for bankruptcy on his or her own behalf without a lawyer. However, hiring a bankruptcy lawyer may be beneficial. First, the lawyer can advise you on what type of bankruptcy you qualify for, and which types of bankruptcy are better in your case. An attorney can also help you plan for bankruptcy to help you retain the maximum amount of your property and assets, and claim the maximum amounts of exemptions from your creditors. Finally, an attorney can help you negotiate or litigate against your creditors if they dispute parts of your petition.

About The Author

Baxter & Baxter, LLP
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Vancouver, Washington 98660
360-574-5239 (Phone)

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Portland, Oregon 97225
(503) 297-9031 (Phone)

http://www.baxterlaw.com

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Berlin airport BBI is about to take off...

2010-05-26T21:27:00.004+02:00

The new Berlin airport BBI is gathering pace. The magic deadline is 30 October 2011. Lufthansa, like others, is already preparing the big move. For them it is more than a new destination; Lufthansa plans to make Berlin its future hub. The new winter schedule reflects these plans: 3 new destination that until October 2011 will leave from Berlin-Tegel: Dubai, Miami, Mombasa.

The countdown is running: in the next 12 months they will search for test-passsengers to evaluate the new airport: is the luggage belt working, is security really secure? These will be the tasks from May 2011 until October 2011. Until then, the workers will still have much to finish. 3,000 of them are making sure that BBI will be connected to the railway and the autobahn. But the success of an airport these days is more and more the non-aviation business: shop till you drop! Currently the passagers are spending less than 7 EUR each, but the forecast is 11 EUR. This money is needed to refinance the credits. 100 Mio EUR are the latest figure. The rents of the shops are an important piece of the business cake. We know this from supermarkets: move the customer the way you want him to spend money. After checking in and passing security you will not be able to escape the shopping temple. In the whole airport 50 shops are planned on 22,000 sqm, including food court. According to the airport company, the retail leases are still under negotiations since there are much more potential tenants than shops.

In the future we have to forget about TXL (Tegel) and SXF (Schönefeld) and get used to BBI. But if you are not a friend of 3-letter-words, you might also call the new airport tenderly "Willi-Brandt".

Here is some background information on Berlin airports:

Green Buildings Are Becoming Fashionable

2010-04-22T09:31:00.001+02:00

In the land of Hesse municipalities signed an agreement that they would elaborate an action plan to reduce CO2 emmissions and to report regularly on results. It is evident that a lower consumption of energy saves money, but first, the municipalities have to invest and many do not have a budget for this. Why do they make an effort anyway? It is very simple: if you can proof that you have been working on a reduction of emissions, with positive results, you have access to more subsidies from the Government and the EU. The goal is to team up with100 municipalities, so far 55 are on board. Here is the list.

The municipalities want to refurbish residential blocks and public buildings to reduce CO2 emissions. Frankfurt also signed the agreement in 2009. Until 2025 the reducion of CO2 emissions could come to 41%, a huge potential.

But green buildings are on the list of the European Union already, this is not only a German initiative. On 16 April the European Union awarded the best green buildings. The prize is for architects that have developed buildings that are ahead of their time. 13 buildings have been awarded in 4 different categories.

More about the Green European Building Programme you can find here.

FM has become a key industry in Germany

2010-04-01T14:50:00.000+02:00

At the beginning of the year the first industry report had been published and Germany is still discussing the – even for insiders – astoundingly good news: facility management contributes more to the GNP than any other industry; more than the automobile or chemical industry.

The study had been carried out by the University of Bochum and Professor Markus Thomzik qualifies the FM industry as an important backbone of the German economy, though the figures have been calculated in a really conservative way. The study stressed on the importance for the economic growth rate, while another positive point was left aside: According to the report 4.1 million workers can be appointed to the FM industry. About 3.1 million workers are directly working within the FM service industry, but still another 1.1 million get their salary from it: lawyers, consultants, architects, IT experts, etc.

Now the industry has proof that it is not wise to keep ignoring them.

Still much potential for new shopping centers

2010-03-17T10:16:00.002+01:00

This article is based on information that had been researched by Bulwien Gesa.

In 2009 noboy wanted to hear about retail investments. After a strong 2007 and a moderate 2008, the year 2009 can be considered loss-making. According to Bulwien Gesa all this could change for the better in 2010 with many foreign investors leading the group of potential investors. Recently also the Deutsche Bank Think Tank mentioned that Germany is the only country where the real estate market is not very much affected by the crisis and where the risk is more manageable than in its neighbor countries (this was actually about residential investments, but still shows the difference in the EU). Investors who purchased properties with long contracts have not much to fear in 2010 as only a few contracts will expire this year.

In the last year smallish retail park with specialty stores have moved toward the city centers. Many hard started with just one specialty store, later the tradional retailers would come and pull the development back toward the center, away from the greenfield. This has led to a new definition of the city centers, today you might have more than one and with different target groups. Those former retail parks now have the chance to become real "citizens" by being converted into modern shopping temples.

In the Immobilienzeitung of 28 Jan 2010, Bulwien Gesa published the following data:

12 new shopping centers were opened in 2009
8 new constructions will be inaugurated in 2010 and 2011
5 retail parks are being converted right now
developers target smaller cities of about 50,000 citizens
the market can still take about 100 shopping centers

What Bulwien Gesa also mentions is how difficult it is to get a building permit for a shopping center from a German municipality. Sooner or later they have to respond to the pressure of the market.

Today (17 March 2010) ING REIM announced a new shopping center fund. No wonder...

Properties: Should I Buy From Forced Auctions? How?

2010-03-02T23:04:00.002+01:00

In this article I am summarizing the pros and cons of buying properties in Germany through an auction. I am talking about forced auctions held by the courts.

The How-To is here: http://bit.ly/bBpwgU

The pros of an auction:

No commission is involved, unless you want a broker or consultancy to help you with the assessment of the information that you might want to gather before you go for the property.
The court always provides for free you with a valuation that had been done by an independant architect. Normally you have to pay for this paper.
In most cases the property will be handed over with a clean land register. Exceptions are very special cases that are mentioned in the documentation the court can provide you with.
You are entitled to the income of the property as of the day of the auction.
Commercial leases can be cancelled within 4 weeks after the auction (not residential leases!!).

The cons:

Many times you might not be able to visit the property from inside since the owner or creditor does not offer this. They are not legally obliged to show you around.
If the former owner resists the hand-over of the property, though he legally cannot do so, you might face a lot work for some time.
Nobody assumes any liability for the property regarding damages etc.

If you need help, do not hesitate to contact FIS: hello@fis24.net

Germany: What is the future of residential investments in the next years?

2010-02-21T14:40:00.002+01:00

German brokers are expecting foreign investors to come back to Germany because they need cash-flow in stable markets. Office and retail properties gave a much better yield than residential investments, but their share is only 10% in the German market. These figures were given by Bulwien Gesa, a German market intelligence company. The opportunities to change for another type of property are relatively small and also the banks are only interested in financing stable investments, which in Germany is residential. Bulwien Gesa remarks that they see the residential market of 2010 like in 2004, with the potential of developing a new bubble. The prices might rise when foreign investors will sell what they bought in the last years with short term finance. Small and bigger portfolios that many investors are looking for will come back to the market.
There is again more construction activity, but this time with a slight inclination towards rental flats. Especially in Berlin where many thought that too many high-end condominiums were being constructed and indeed, a good portion of the flats had to be sold for less and with incentives. But Berlin is not a single case. Also in Düsseldorf, Cologne and Hamburg there are again more projects for rental flats being realized. The only exception is Munich where construction has always been too expensive to get good rental yields.

The reason for more rental flats is obvious: Germany is historically a country where people rent. In the last years the Germans started buying condominiums when they realized that the public pension fund might not take care of them by the time they retire. Of course only the upper crust of the population. But the economic crises slowed down this trend significantly. It is sometimes easier for investors to sell a flat in Berlin to a foreigner than to a German and especially not to a Berliner. The city is the poorest in the country, income is very low. Another reason for more rental flats lies in the search of closed funds to buy such properties.

Coming back to the initial question: the answer is that the future looks good for residential investment. Many investors are afraid of the German law that protects tenants much more than in any other country. But this law also regulates the tenant’s duties. If he does not meet the requirement stated in that very law that actually gives him more protection than in most other countries, he is out. For this reason it is very important to take an experienced administration company. Administration and asset management is not the same in Germany. If you have doubts on how to choose a good administrator and what to do with your asset management, feel free to ask: hello@fis24.net

Berlin: new resi project where once the Nazis surrendered and the KGB ruled

2010-02-08T14:00:00.003+01:00

Berlin-Karlshorst was established in the late 19th century as garden-city of Berlin, in the North-East of the city. After the WW II it has long been the place only known for the unconditional surrender of the Deutsche Wehrmacht.

After that the KGB took the caserne as their HQ in Eastern Germany. When in 1994 the Russian Allies left Eastern Germany, the premises were partially converted into the German-Russian Museum.

We are now in 2010 and the spot has seen many suggestions come and go. Finally the developer "Rentenvorsorge GbR" was the winner and is now building 340 flats for 2.080 EUR / m² (according to Immobilienzeitung of 28 Jan 2010). This is not the first project where a caserne is transformed into a residential project and apparently this time it could become another success-story. Until 2011 also 40 townhouses are planned. 60 flats are already sold. The construction will begin these days (once the German winter will finally be over). The caserne had been built in the 1930s, a solid construction under monument protection. This will give the buyers some additional tax goodies.

The developer took a smart decision: he let's people get a "touch and feel": there are guided tours around this historical place and the museums got what the workers found inside the buildings. The neighbours became friendly with the project and some of them have already issued letters of interest for a future purchase.

The picture shows the signature of surrender on May 8, 1945.

Karlshorst 2009:

Karlshorst 2011?

German government still in Bonn. When will they move (and cut costs)?

2010-01-27T12:39:00.001+01:00

The social democratic party (SPD) is claiming a final date when the rest of the government will move from Bonn to Berlin. It sounds impossible to understand why 20 years after the fall of the wall, in the 20th year of reunification there are as many civil servants and government employees in Berlin as in Bonn. Does the German population actually know? Apparently not. The subject came up when somebody in the Bundestag had a closer look on the list of government spending.

In 1999 the government moved from Bonn to Berlin, partially as we now know. Yes, we knew that some remained "for the moment" in Bonn. These are the figures from 2009: 6 of 14 ministries are still in Bonn, plus there are "representations" of the other eight that are already in Berlin, 8,732 civil servants in each city, 250 double offices, 132,000 airline tickets, 751 tons of mail. The association of tax payers estimates that this costs around 23 Mio EUR each year that could be spent elsewhere (data published by SZ on 15 Apr 2009). This sum includes the wasted working time that is never calculated in official lists. No surprise that the government gives a sum of only 8.8 Mio EUR.

Who has an interest in keeping the government divided? Many of the most influential politicians have their electoral district in the federal state North Rhine-Westphalia, the home of Bonn. Now that the pockets are empty, the association of tax payers claims that moving the rest of the government to Berlin could save costs. The government say that this move would costs between 3 to 5 billion EUR and they cannot afford it. Also, why bother? The situation has been so cozy for the last 10 years. Mainly Eastern German ministers are fighting for a united government in Berlin. The rest keeps commuting. As they always did.

But there is hope. Those who lobby for Bonn are growing old. Young politicians have never known the real Bonn, but they do know the real Berlin which was a different story 10 years ago. Berlin has gained so much as a city, moving to Europe’s most exciting spot is appreciated by many. In 2008 the Department of the Interior planned its new building the way that also the staff from Bonn could be integrated. Politics through the back-door?

Germany is very proud of being one of the two countries that met the Kyoto agreement to reduce CO2. The commuting of its civil servants is definitely not very environmental. Maybe this will be decisive for the outcome of the war...

Berlin: Airport fees will be decisive for the success of new airport

2010-01-24T21:39:00.003+01:00

According to Mr. Hunold, CEO of AirBerlin - Germany's Nr. 2 airline - the new airport BBI should not charge more than what they are paying now. A big increase would not be affordable for the airlines and Berlin would be the only location where AirBerlin is actually growing. He adds that the fees for airlines will directly influence the success of the multi-billion-euro investment.

The airport company offered the airlines to work together on the new fee structure. It is less a question of cost than of politics. The region itself still does not produce a big demand, but foreign tourists love Berlin and are the most important factor behind the growth of AirBerlin. The location of Berlin is for Hunold perfect when it comes to route air traffic from the South or the East and North-East.

Berlin: District fights with snowballs

2010-01-21T19:56:00.001+01:00

Berlin is the capital of pacifists. Nowhere else so many people go on the street to show their opinion. But what is this here??? It is known that once per year Kreuzbergers and Friedrichhainers (actually one district, formerly east and west) meet on the Oberbaum bridge to through tomatos at each other. No wonder that they got new ideas during this long winter with massive snow.

This really interesting article can be read here:

Schneeballschlacht: Kreuzberg vs Neukölln from Adrian Pohr on Vimeo.

Lufthansa: BBI airport will not be our new hub / Still no solution for private jets

2010-01-20T15:40:00.007+01:00

After asking yesterday "What will happen to Tegel Airport" , I saw another press release on the matter today. The supporters of the new airport BBI (Berlin-Brandenburg-International in Schönefeld, great Berlin area) are dreaming of an international hub, but Lufthansa made it very clear yesterday morning during a breakfast meeting of the chamber of commerce: they are delighted to expand their business at the new airport, but do not even think about using BBI as a new hub. There would be already Frankfurt and Munich, two economically powerful cities where the investment produces a return. Lufthansa say that at the moment Berlin is quite far away from a similar position.

The supporters are more than disappointed. The CEO of Lufthansa, Mr. Mayrhofer made a very simple calculation: all the German DAX companies are gone. Economically it does not make sense, there is not such an economic power in Berlin that would justifya new hub. If one day more people are flying to Berlin, then yes it could be interesting but for the moment Berlin is not a business destination where passengers from other regions come and then can connect to further destinations. According to Mayrhofer Lufthansa will become much bigger than it is today, but only with the already existing destinations. Nowhere else is Lufthansa growing as much as in Berlin.

Flexibility is the most important issue for Mayrhofer who points out that staying flexible helped not reducing the stuff during the crisis. The competition, Air Berlin, also sees growth in Berlin, but did not specify whether they would just offer more flights within the existing destinations or open new ones. Both, Air Berlin and Lufthansa are sure that the growth lies in the low-cost field. Nowhere else are so many low-cost carriers landing than in Berlin-Schönefeld, the future BBI. Mayrhofer cannot understand why citizens are so much fighting for the ban of night flights. "Berlin lives at night" he says, "why close down the airport?".

Interesting: nobody can answer the question where the business and private planes shall go. BBI already said in November that small planes (less than 2 tons) are not welcome on the future BBI, also will the airport increase the fee for private planes so far. So where will the economical power of the region come from if investors cannot come with their private planes? Remember: Tempelhof airport closed in fall 2008, Tegel airport will close in winter 2011/2012.

Hopefully the solution will pop up out thin air...