If you want to bag yourself a bargain in an up-and-coming city, Berlin is the place to look, says property guru Jonny Benarr
Some 135 million people visited Berlin in 2010 and it’s no wonder given the city’s unique and vibrant energy. This is evident in everything from the eclectic architecture to the open, friendly attitude of its people.
Germany is also a financial powerhouse and one of the most stable economies in the world. An estimated 84% of the city’s population rent rather than own. And, compared with capitals like London and Paris where you can expect to pay in excess of €10,000 per m2, in Berlin that figure is less than €3,000 per m2. Low-cost property combined with high rental demand equals an investor’s dream.
Darrell Smith from Buy Berlin (www.buyberlin.co.uk) is an estate agent and property finder dealing with both residential and commercial sales and lettings.
“Although compared with other European capitals Berlin is considered cheap, that is not going to be the case for long,” he says. “Historically, Berliners were happy to rent long-term, and many still will be, but with increasing rental costs they are switching on to the fact that it can be cheaper to have a mortgage.” (more)
Berlin experienced a record year for its office market in 2011, driven largely by a burgeoning technology start-up scene that is starting to attract the big players.
Surrendering to cliché, it appears that a new ‘Silicon Valley’ is springing up in the German capital after a 24.5% surge in office space leased by IT companies over the past 12 months.
Online retailers Amazon, Groupon and Zalando have all been attracted by Berlin real estate market’s relatively low rents and steady property prices.
When this is combined with a young, well educated and creative workforce, it creates an ideal location for start-up companies in the technology, media and telecommunications (TMT) sectors looking for the most talented workers. (more)
Vienna-listed real estate investor CA Immo plans to invest some EUR 300 mln in the Berlin and Frankfurt real estate markets in 2012.
In a recent announcement, the company said Berlin is particularly attractive as a business location as it has a comparatively low level of income and rents, a broad mix of industries and a growing service sector.
Chairman Bruno Ettenauer: ‘In conjunction with a traditionally modest supply of new area, this yields a growth market that is resistant to crisis from the point of view of the property investor, and one in which CA Immo will also be planning to increase its activities in the years ahead.’ Frankfurt is and will continue to be a top location but is more vulnerable because of its ongoing strong orientation to the banking sector, he added. (more)
How Europe’s biggest economy grew employment during the crisis.
BERLIN, Germany — Unemployment is rising in most European Union countries, as the effects of crippling sovereign debt crisis, and the austerity measures prescribed to tackle it, take their toll.
Yet the bloc’s biggest and richest member has seemed almost immune to the effects of the crisis, particularly when it comes to its labor market. While dole queues lengthen in Spain, France and Greece, in Germany they are rapidly dwindling.
In fact Germany has seen the number out of work decrease to its lowest level since 1991. It’s a remarkable turnaround. (more)
Concerned about the euro zone crisis and suffering the pinch from painful austerity measures at home, de Vito is among many middle-class Europeans, especially from worst-hit Italy and Greece, seeking to shelter at least part of their life savings in property in the capital of the region’s strongest economy.
“I feel responsible for my two children and I thought I had to keep something for them while we are preparing for the worst,” said de Vito, a former court clerk who lives in a small town near Avellino and retired four years ago. (more)
Home sales in Germany rose by 22% in 2011 compared to the preceding year, with sales revenue of £8.6bn (€10.4bn) according to the German Real Estate Association (IVD).
The German property market, supported by cheap property prices and high rental rates, is attracting a growing number of property investors seeking high rental returns and potential room for capital appreciation. There is a huge rental market because Germans, in general, tend to rent rather than buy a home. (more)
CA Immo anticipates increased competition for tenants and investors in the Central European locations in 2012 and subsequent years. The commercial property sector will be decisively influenced more than ever by the factors of banking system stability and economic development in the individual markets and their ability to weather crises.
Germany: Berlin and Frankfurt compete for top position. Comparatively low levels of income and rents, a broad mix of industries and a growing service sector are what make Berlin particularly attractive as a business location. Dr. Bruno Ettenauer, Chair of the CA Immo Management Board says: “In conjunction with a traditionally modest supply of new area, this yields a growth market that is resistant to crisis from the point of view of the property investor, and one in which CA Immo will also be planning to increase its activities in the years ahead.” Frankfurt is and will continue to be a top location but is more vulnerable because of its ongoing strong orientation to the banking sector. (more)
2011 is emerging as a record year for the German residential market. More than 220 large-scale residential portfolios were sold to international investment groups during the year versus 171 in 2010, the Patrizia Immobilien Group told OPP this week.These deals represented an investment volume of about €5.7 billion, global agency group Jones Lang Lasalle told OPP and “the most active buyers were institutional investors like listed companies, funds, banks, REITs, and fund managers.”
Companies like this nearly €4.4 billion of the total spend.And in leading commercial centres like Munich rents are also starting to reach new record levels. (more)
— Auctions of safer European government bonds attract stellar demand
— German five-year auction sees strongest demand in eight years
— Germany pays less than 1% to borrow money for five years
— UK 10-year auction also gets robust demand
(Rewrites throughout, adds analyst comment.)
LONDON (Dow Jones)–Investors rushed into German and U.K. bond auctions on Wednesday, showing a strong appetite for assets considered to be safe amid continued worries about a deepening euro-zone debt crisis if the economy continues to deteriorate.(more)
BERLIN, Jan. 4 (Xinhua) — German economy will avoid recession despite possible contraction in 2012 due to the deepening eurozone debt crisis, a leading economist said Wednesday.
“We expect 0.6 percent growth for Germany in 2012, which is clearly below the 3 percent growth in 2011,” Ferdinand Fichtner, an economist with German Institute for Economic Research (DIW), told Xinhua. “But in the end, Germany is still the most potent economy in Europe in the current situation.”
The German economy is expected to return to solid growth in 2013 and rise by 2.2 percent, Fichtner said, quoting DIW’s forecasts for the new year.
Fichtner said the DIW, one of the country’s top institutes, expects that the recession in the eurozone will deepen in the first half of 2012, which will prod the European Central Bank (ECB) to intervene in a stronger manner than it did previously. (more)