People from neighbouring countries in Germany are taking lots of interest in buying property or investing in Real estate in Berlin. The reason being there is pretty good chance of appreciation of value of properties in near future. Also, the rate of rentals of the apartments is skyrocketing and therefore Berlin makes an attractive destination for most of the investors in the Europe.
For last few decades people did not pay much attention to this important country in Europe which is economically quite a strong nation. However, it seems that now it is making up whatever was lost during last few decades. Lets us look at few reasons why Berlin property prices have suddenly attracted attention of people from almost all the advanced countries of the world.
German property value has not appreciated much
In spite of massive industrialization of the country the property price in Berlin has remained almost stable for all these years. Particularly if you compare the prices of any Berlin property with any other city then you will find that it is still undervalued. You can compare the prices of property with any other city in Europe and you will know the fact. Also, you may notice that the cost you need to pay as rent for any apartment in Berlin is much lower as compared to London or any other important city in Europe.
Many investors also think that investing in any Berlin property may be risky as the price may fall in due course of time. However, based on the recent study about the trend in the property market, this fear is totally unwarranted. According to the study report the value of German real estate has no chance of falling however it may not be highly inflated either.
The property price will have normal growth in comparison with many other European cities. As per the data available with us after the Germany’s unification, the price of property has appreciated by 20 per cent from the value that was during 1990. However, now it is catching up very fast.
Rental value of Berlin properties is also increasing
According to the recent report the rental value of Berlin property is increasing very rapidly and the data shows that if you want to rent any accommodation near Friedrichshain or Kreuzberg in Berlin then you have to pay almost 13 percent higher rent than what you have paid in the previous year. Therefore, it certainly makes good sense to invest money in buying home property and use it for renting purpose.
Demand of property is increasing rapidly
Following are few new developments in the Berlin city which has fuelled the appreciation in the value of real estate.
- Population growth
As per the statistics, the population growth is increasing by 15,000 families in a year. If this development continues to prevail then there will be shortage of building in near future.
- Job creation
Many companies are now moving to Berlin due to which there will be more creation of jobs and as a result there will be more influx of population in Berlin.
- Purchasing power
Cost of living in Berlin was much lower for last many years as compared to other cities in Europe and therefore the purchasing power in Berlin is 59 per cent higher than London. However, in next few years it is going to reduce as the rental value increases.