German Property News

New Residential Real Estate Market Report 2011/2012 Published

kap-C — Sun, 16 Sep 2012 20:53:14 +0000

The NAI apollo group has completed its latest analysis of the residential real estate market and has published its findings in a new 160-page report. The “Residential Market Report Germany 2011/2012” covers all aspects that are significant to the residential real estate market with regard to the current situation, past developments and future expectations. The latest Residential Market Report Germany 2011/2012 includes a detailed analysis of 11 large residential locations: Berlin, Dortmund, Dresden, Düsseldorf, Essen, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich, Stuttgart. A major new addition to the 2011/2012 Residential Market Report compared to last year is the dynamic city-attractiveness ranking, StAR, which analyses the current and future potential of the 114 independent cities.

Most residential portfolio transactions take place in the federal states of Berlin and North Rhine Westphalia

As in previous years, demand on the residential portfolio market (> 30 residential units) is particularly high for residential stock in the German metropolises and regional urban centres. As in the last two years, Berlin is at the centre of investment activity: the German capital accounted for around 23% of the assignable portfolio transactions with an investment volume of around €2 billion. Next in line are the cities of Hamburg, Munich, Frankfurt, Düsseldorf and Cologne. “In a breakdown by federal state, a majority 48 percent share of the transactions related to the federal states of North Rhine Westphalia and Berlin,” says Dr. Konrad Kanzler, Head of Research at the NAI apollo group.

German investors account for 67.1 percent of the sales volume

German investors represented the largest investor group in the first half of 2012, accounting for 85.7% of the transactions or 67.1% of the volume. However, international investors also continue to play a special role. Before the financial crisis in 2007, foreign investors accounted for 38.4 percent of all portfolio transactions, but this share had fallen to 19.8 percent in 2011. In the first half of 2012, the foreign investor share fell further to 14.3 percent. Nevertheless, this still amounts to 32.9 percent of the volume or 29.3 percent of the traded residential units.

When making a distinction between institutional and private investors, institutional investors accounted for 90.7 percent of the individual portfolio transactions (2011: 80.3%). “However, there has not been a decline in interest from private investors. Asset security, the lack of low-risk investment alternatives, increased liquidity and the long-term security of the current low interest rates remain central arguments for a property investment,” says Kanzler. Instead, Kanzler believes that the reduced activity by private investors is due more to increased competition for smaller portfolios, where the private investor frequently emerges as the loser. “Other private investors do not always buy in terms of potential yields, but are looking for individual ‘select properties’,” said Kanzler.

Positive outlook for the current year

“At this time, a positive outlook must be given for the current year. After a sensational €6.9 billion by the middle of the year, we are forecasting around €10 billion by the end of the year,” says Kanzler. He adds: “There is continuing interest in residential investments from both institutional and private investors, all with high levels of liquidity. Positive framework conditions such as favourable interest rates and the stable economic situation will also not change in the medium term.” Further potential mega deals include the property subsidiary of BayernLB (GBW with around 33,000 residential units) and the state-owned TLG Immobilien GmbH (11,500 units). Besides these large sales, trading in small and medium-sized residential packages will also contribute to a further high level of transaction activities in 2012.

If you would like to receive a PDF copy of the free Residential Market Report Germany 2011/2012, please contact us.

GermanPropertyNews.eu Joins Association of German Real Estate Professionals

kap-C — Sun, 16 Sep 2012 20:30:22 +0000

GermanPropertyNews.eu recently joined the German Federal Association of Real Estate Professionals – Bundesverband für die Immobilienwirtschaft (BvfI). Our membership of the BvfI will not only allow us to stay even closer in touch with the developments in the German real estate market and to benefit from the training and information on German property that is available through the association, but will also enable us to further expand our network of property professionals in Germany.

As a BvfI member we will now also be able to access the association’s internal property multi-listing-service, which means that we can now access the details of more than 15,000 properties that are currently on the market in Germany. Finding the right investment property in Germany for our clients has therefore just got easier!

We are now also able to offer German real estate properties, which our clients wish to sell, to more than 8,500 real estate professionals in Germany, thus increasing your chance of selling your property in Germany dramatically.

If you are interested in buying property in Germany or selling property in Germany, please contact us!

For Sale: Buy-to-let Apartment in Berlin with Top-Yield – EUR 72,000

kap-C — Sun, 16 Sep 2012 19:54:10 +0000

Attractive buy-to-let apartment investment in Berlin-Marzahn. Modern apartment in attractive apartment development.

Reference: 20501
Location: Berlin (Berlin-Marzahn)
Type: Buy-to-let Apartment
Year of Construction: 1986, modernized 1998
Net Rent p.a.: €3,977.88
Gross Yield: 5.5%
Purchase Price: €72,000

Find full details on FindGermanProperty.com

For Sale: Apartment Block w. 38 Apartments and Superb Yield – EUR 660,000

kap-C — Sun, 16 Sep 2012 18:58:47 +0000

Apartment block with 38 apartments and a superb yield of 8.5% with further very substantial potential in attractive city location in Plauen, Saxony.

Reference: 20907
Location: Plauen (Free State of Saxony)
Type: Apartment Block
Year of Construction: c. 1930, modernized
Net rent p.a.: currently EUR 55,890.72, further potential of up to c. EUR 83,000.00
Gross Yield: currently c. 8.5%, further potential of up to 12.6%
Purchase Price: €660,000

Find full details on FindGermanProperty.com

Berlin is Booming – Part 1: Residential Rents

kap-C — Fri, 18 May 2012 20:58:59 +0000

The real estate market in the German capital Berlin is booming – and it is not too late to grab a slice of this dynamic market! According to the “IVD Real Estate Price Service 2011/2012″, further substantial growth can be expected for the foreseeable future as property prices in Berlin are still undervalued if compared to other German cities.

The Berlin Boroughs (Image: TUBS (Wikimedia Commons))

According to the “Real Estate Price Service 2011/2012″ (Immobilienpreisservice des Immobilienverbands Berlin-Brandenburg (IVD)) of the real estate agents’ association for Berlin-Brandenburg, IVD, the average rent in standard residential areas in Berlin increased from 6.00 Euro to 6.20 Euro per square metre and from 7.25 Euro to 7.60 Euro per square metre in preferred residential areas. Overall, rents increased by an average of 7.9 percent over two years between 2009 and 2011. The highest increases were recorded for the well established south-western Berlin boroughs, where rents increased between 10 and 15 percent in just one year between 2010 and 2011.

The highest rents for apartments in preferred locations are currently paid in the Berlin borough Charlottenburg-Wilmersdorf, where the average rent amounts to 9.25 Euro per square metre. This is followed by Berlin-Mitte with 9.15 Euro per square metre and Steglitz-Zehlendorf with 9.00 Euro per square metre. Pankow with 8.00 Euro per square metre and Tempelhof-Schöneberg with 7.75 Euro follow on places four and five of the Top-5-Ranking.

The rents in top locations have also increased and are now in Mitte at 18.50 Euro/sqm, in Charlottenburg-Wilmersdorf at 15.00 Euro/sqm, in Steglitz-Zehlendorf at 14.00 Euro/sqm and in Pankow at 13.00 Euro/sqm.

The lowest monthly rents per square metre in preferred locations are paid in Neukölln (6.15 Euro) and Lichtenberg (6.30 Euro). Standard residential locations in these areas achieve an average rent of 5.50 Euro. Rents are similar in standard locations in Marzahn-Hellersdorf and Spandau.

According to Dirk Wohltof, chairperson of the IVD Berlin-Brandenburg, the real estate market in Berlin will continue to grow despite the uncertain economic conditions. He emphasises, that the IVD study has clearly shown that it would not be appropriate to speak of an “explosion of real estate prices”, as the property prices in Berlin are still on a relatively low level if compared to other German cities. There was even a significant increase in demand for property in the Berlin “Bacon Belt”, the affluent commuter belt on the periphery of the city, which results in only marginal vacancy rates in the residential sector.

Berlin is Booming – Part 2: Prices for New Apartments

Karl Apsel Consutling Ltd. can offer you all types of properties – quality apartments, off-plan apartments, apartment blocks and development land – in various parts of Berlin. Please contact us or view Berlin properties on FindGermanProperty.com

Berlin is Booming – Part 2: Prices for New Apartments

kap-C — Fri, 18 May 2012 20:39:08 +0000

According to a study published by leading market research company BulwienGesa, purchase prices for apartments in the western part of Berlin increased on average by 11 percent if compared to the previous year. The greatest price increases were recorded for the district of Kreuzberg, where prices increased by an average of 14.8 percent, followed by Charlottenburg with an average increase of 11.3%.

The Berlin Boroughs (Image: TUBS (Wikimedia Commons))

The market researchers investigated 34 projects in the western city centre with approx. 1,350 apartment units, of which 1,190 units, approx. 90 percent, are currently under construction.

The new developments, that were surveyed, have an average price of 3,900 Euro per square metre, with the majority of projects having an average purchase price of between 3,501 Euro and 5,000 Euro per square metre. The highest prices for apartments are achieved in Tiergarten (4,240 Euro/sqm) and Charlottenburg (4,000 Euro/sqm), while Kreuzberg, with an average price of 3,270 Euro/sqm, is last among the western inner city districts.

Berlin is Booming – Part 1: Residential Rents

For Sale: Attractive City Centre Apartments in Berlin from €43,500

kap-C — Wed, 18 Apr 2012 17:02:39 +0000

Idyllically situated city centre apartments from €43,500 in the Berlin borough of Reinickendorf.

Reference: 20407
Location: Berlin (Reinickendorf)
Type: Buy-to-let Investment Apartments
Year of Construction: 1953/54
Size Range: 29 sqm – 101 sqm
Purchase Price: €43,500 – €151,000

Find full details on FindGermanProperty.com

For Sale: Attractive Waterfront Apartment Investments in Berlin

kap-C — Wed, 18 Apr 2012 16:34:36 +0000

Attractive waterfront apartment investments in the Berlin city centre district Tegel.

Reference: 20406
Location: Berlin (Tegel)
Type: Waterfront Investment Apartments
Year of Construction: TBC
Size Range: 64 sqm – 91 sqm
Purchase Price: €148,281 – €209,760

Find full details on FindGermanProperty.com

For Sale: Investment Opportunity – Modern Buy-to-let Apartment in the Berlin Metropolitan Area

kap-C — Sat, 14 Apr 2012 19:37:47 +0000

Investment opportunity in modern buy-to-let apartment in the Berlin Metropolitan Area.

Reference: 20405
Location: Berlin Metropolitan Area (Zeuthen)
Type: Single buy-to-let apartment
Year of Construction: c. 1995
Total Net Rent p.a.: c. €3,780
Gross Yield: c. 5.3%
Purchase Price: c. €72,000 (incl. underground car parking space at a value of €4,000)

Find full details on FindGermanProperty.com

For Sale: Attractive Buy-to-let Apartment Investment in the Berlin Metropolitan Area

kap-C — Sat, 14 Apr 2012 16:50:45 +0000

Attractive buy-to-let apartment investment in the Berlin Metropolitan Area.

Reference: 20404
Location: Berlin Metropolitan Area (Wildau)
Type: Single buy-to-let apartment
Year of Construction: c. 1997
Total Net Rent p.a.: c. €4,680
Gross Yield: c. 5.3%
Purchase Price: c. €88,600 (incl. underground car parking space at a value of €4,000)

Find full details on FindGermanProperty.com