More investors snap up homes in Berlin

A growing number of international property investors, including more Brits, have identified the Berlin property market in Germany as a good place to invest their money, according to a new Savills report.

Anyone buying an investment property in Berlin, with a view to letting it out, can expect to receive a rather high rental return, with yields of eight per cent and over not uncommon, partly because many locals prefer to rent rather than buy property.

The Germany property market is performing rather well at the moment, on the back of a rather strong domestic economy, which is outperforming most other countries in Europe.(more)


Berlin sees big rent increases

Rents in Berlin have increased in the last two years by an average of 7.9 percent. This was revealed in a report on the city’s rent index (Mietspiegel) presented by Ingeborg Junge-Reyer (Social Democratic Party, SPD), the urban development minister in the Berlin Senate (city government).

The SPD-Left Party coalition that controls the Senate in Berlin and implements policies exclusively in the interests of the large housing corporations and financial speculators is responsible for the dramatic increase in rents in the city.

 

German commercial real estate likely to see €20 billion in investment transactions in 2011

This year’s strong start in the German real estate sector was followed by a similarly brisk second quarter, with transaction volume nearly the same as in the three months before, according to the latest report from Colliers International.

In total, the volume invested in commercial real estate during the first half of 2011 was €11 billion, 24% up on the same period of last year. ‘In light of the first half year results and sales currently in negotiations, we continue to stand by our earlier forecast of over €20 billion in transaction volume in the commercial investment market this year,’ said Andreas Trumpp, head of research at Colliers International in Germany.

At the close of the first half of the year, open ended and special real estate funds accounted for transaction volume of about €2.3 billion, just ahead of investors with an opportunistic or added value oriented investment profile, who also accounted for about €2.3 billion in transaction volume. (more)

This is the story of the “Wirtschaftswunder,” the German economic miracle.

 

Erhard courageously and almost single-handedly unshackled German citizens from the Nazi-inspired, socialist-endorsed and American Keynesian-imposed economic controls. He later confessed that he launched his plan on a Sunday, when the American occupation authorities’ offices were closed, because he was certain they would otherwise have countermanded his orders. Germans later made Erhard their chancellor but his lasting legacy is the German Miracle: a lesson of how free people in a free market, rather than an oversized and overbearing government, can rescue an economy – even one as devastated as post-war Germany‘s.

The lesson is right there for anyone who can see it.

Almost a century ago, Presidents Herbert Hoover and Franklin D. Roosevelt converted a great recession into the Great Depression with their big-government schemes. Similarly today, Mr. Obamahas turned our Great Recession into the Obama Depression with his own – now old, tired and discredited – big-government schemes. Meanwhile, Mr. Obama cannot see the obvious lessons of the German Miracle: Unleash the free market, unshackle entrepreneurs and workers from big-government controls and we, the free people of the United States, can rescue our economy and create our own 21st century American Miracle. (more)

 

 

Big sales loom as German resi gains momentum

The German residential market is gaining momentum after three years in the doldrums, with several large sell-offs on the cards. In the first half of 2011, there were 42 residential portfolio deals, according to Cushman & Wakefield, a jump of 19% on the same period last year. In total, 37,000 units were traded with a combined value of around EUR 1.76 bn.

‘The market started to recover in the first half of the year although demand is stronger than supply,’ Dr. Malte Maurer, head of residential investment at JLL in Frankfurt, told PropertyEU. ‘There is a big gap between buyer and seller expectations with regard to price. Buyers still expect a discount and a lot of deals have fallen through because buyers weren’t prepared to do this.’

Nevertheless, some big deals have still been pushed through, including TAG Immobilien’s acquisition in February of just over 50% in Colonia Real Estate, which holds a residential portfolio of 18,800 units, for EUR 400mln.(more)