The Facts and Figures that Support Charlottenburg’s Investment Case

(Part Two of Two)

In Part Two of our introduction (Part One here), we reveal who lives in the area and the numbers behind the investment case that highlight why this City-West location is so appealing to real estate investors.

Home to Wealthy Berliners, Creative Students and Young Families

Charlottenburg has always attracted Berlin’s wealthiest and chicest residents, ever since Sophie Charlotte commissioned the stunning Schloss Charlottenburg. Today, the district counts politicians and local celebrities among its affluent residents. The area has previously been likened to London’s Fitzrovia.

Charlottenburg’s high-end villas and spacious apartments are typically larger than the average in Berlin, with many featuring balconies, garden access and cellar space as well. Wide roads and pavements, elegant avenues lined with trees and classic 19th century architecture make this an attractive and refined neighborhood.

Yet, despite constant development in this busy city centre district, Charlottenburg still offers quiet corners of oasis and pockets of greenery, including playgrounds which attract many middle-class families to the area. To the east, Charlottenburg borders Tiergarten Park, a vast expanse of lakes and woodland in the heart of Berlin, comparable to London’s Hyde Park.

Charlottenburg is also an easy commute to the CBD and other prominent employment areas. The Strasse des 17. Juni runs eastwards from Charlottenburg Gate, through Tiergarten Park, to the famous Brandenburg Gate – connecting Charlottenburg with Berlin-Mitte (Central Berlin) in just a 10-minute drive. What’s more, the prime central location of Charlottenburg as an inner-city district inside the S-Bahn ring (train network) means this area is unrivalled in location as well as class.

In addition, Charlottenburg boasts a large student population due to two local universities: the Technical University of Berlin and the Berlin University of the Arts. Combined, they have a population of over 30,000 students.

Facts and Figures: Charlottenburg as an Investment

Charlottenburg is one Berlin’s best-performing property markets. A traditional, mature and middle-class neighbourhood, rather than an ‘up and coming’ district, Charlottenburg is an evergreen location for property investment in Berlin. Every property in the entire district is considered to have a sophisticated, premium and much sought-after address.

As of the end of 2015, Charlottenburg was reported to have a population of over 330,000 (CBRE). A strong continued pattern of population and price means there is a predicted population growth forecast of 6.1% before 2025.

Therefore, it’s no surprise that demand far outstrips supply and value is rare. Land for new builds is scarce in City West locations such as Charlottenburg-Wilmersdorf. As of January 2017, there were 460 apartments, either under construction or planned, per 100,000 residents – well below Berlin’s average of 890 per 100,000 residents (CBRE).

Exploring Charlottenburg: a mix of old and new in central Berlin

(Part One of Two)

The traditional neighbourhood of Charlottenburg-Wilmersdorf, named after historic aristocrat Sophie Charlotte of Hanover, Queen consort of Prussia, has long been an area associated with affluence and culture. Ever improving, this district is known for its brilliant mix of old and new, with many residents choosing to live in the area because of the unique combination of rich history and comfortable modernity.

A Long History of Affluence, Culture and Commercial Value

An independent city until 1920, Charlottenburg was then incorporated into Greater Berlin and became known as the ‘New West’ during an era known as ‘The Golden 20s’. At this time, the many theatres, cinemas, bars and restaurants which populated the district gave Charlottenburg the title of Berlin’s leisure and nightlife capital.

This reputation ended with the rise of the Nazi party and the area was heavily damaged in World War II, by both air raids and the Battle of Berlin. However, after 1945, the area quickly regained its influence by becoming the commercial city centre of newly-divided West Berlin.

Charlottenburg Today: A Luxury Retail Destination and Upmarket Residential District

Post-reunification, Charlottenburg is still known as one of the most upmarket areas of the city, with high-end bars and restaurants attracting a bourgeoisie crowd of wealthy residents and visitors.

A shopper’s paradise, Charlottenburg’s famous Kurfürstendamm (often abbreviated to Ku’damm) has been likened to London’s Bond Street and Paris’ Champs-Élysées; the Ku’damm shopping boulevard is packed with designer flagship stores and boutiques, while KaDeWe is the largest department store in Europe.

Aside from being Berlin’s biggest retail destination, Charlottenburg has preserved its historic status as a diverse cultural hub. The area is home to a range of museums, hotels and theatres; an Olympic Stadium from the controversial 1936 Olympic Games; an opera house; Germany’s oldest mosque still in use; and West Berlin’s Chinatown on Kantstrasse, dubbed ‘Kantonstrasses’ after the Canton area of South China.

Of course, Charlottenburg’s most iconic landmark is the picturesque Schloss Charlottenburg (Charlottenburg Palace, pictured above), which is the largest surviving royal palace in Berlin.

A Popular, Established Neighbourhood with a Bright Future

The ruins of Charlottenburg’s Kaiser Wilhelm Memorial Church date back to the 1890s, but today they stand alongside towering hotels and contemporary office blocks on the Ku’damm. This mix of old and new best defines the character of Charlottenburg and ultimately, Berlin’s ongoing transition from a city divided to a global-minded metropolis that is looking to the future.

Berlin landlords can attract the successful millennial renter with high quality furnished apartments

• As the millennial rental demographic booms, furnished apartments on short term contracts become highly sought after

• Millennials have high expectations of quality and comfort, as well as convenient city-centre locations

• Buy Berlin announces partnership with furnishing experts David Phillips to help Berlin property investors prepare their apartments to a high spec in order to attract short-term, high quality tenants

• David Phillips, based in the UK, is bringing its successful furnishing business model to the Berlin property market for the first time

Buy Berlin, a Berlin-focused real estate agency that offers a complete and personal service to its international and domestic client base, announced its partnership with furnishing experts David Phillips today.

Buy Berlin has long recognised the changing requirements of the Berlin market, with increasing numbers of millennial workers looking for good quality, short term furnished apartments to suit their lifestyle and expectations.

Darrell Smith, Buy Berlin’s CEO who has operated in the Berlin market for over ten years says, “Berlin, like Germany as a whole, has traditionally offered long term rental agreements which, of course, have their benefits in terms of stability. However, this can inhibit the ability for young workers to easily move when their work and social needs change. We developed our Corporate Furnished Service as a way to provide the right accommodation for this demographic and to encourage more landlords to convert their apartments into millennial-friendly homes whilst securing the best rental value they can.”

The furnishing service is unique in Berlin, with the Buy Berlin / David Phillips partnership being the first of its kind in Germany.

Nick Gill, CEO of David Phillips, says “There is no comparable option available in Germany right now, and we are excited and proud to be partnering with Buy Berlin to deliver a service that is badly needed and long overdue in Europe’s most dynamic and evolving property market. Buy Berlin is a visionary and interruptive company in their field, open to innovation and new ideas, so the partnership is a perfect fit.”

The world continues to evolve rapidly. Many of us have quickly become accustomed to instant news, last minute travel and having everything available at the push of an app.

Moreover, whether we are a landlord or tenant, we are looking for convenience, flexibility and quality when it comes to our choices.

Smith continues, “Partnering with David Phillips means it is now easier than ever for Buy Berlin’s property investors to purchase the right kind of furniture for the Berlin rental market and to secure the best rental value in an increasingly competitive market. We can now offer landlords a unique service in Berlin, supplying high quality furniture packages quickly and installed without fuss.”

It may be a boutique real estate agency compared to some of Germany’s big hitters, but a straightforward service is what has set Buy Berlin apart.

Smith concludes, “We are committed to continually working on behalf of our clients to make property investment as easy and as successful as possible, and this extends to understanding what the best Berlin tenants want. This service sits alongside, and enhances, our entire suite of real estate services and we look forward to both landlords and tenants benefiting from David Phillips’ exceptional furnishing services.”