Condominiums in Berlin, Germany are the hot place to put your investment these days. The growth in this area is predicted to continue to grow in the up-coming years, being driven by both domestic and foreign buyer demand.
According to Nikolaus Ziegert, Managing Partner of Ziegert - Bank und Immobilienconsulting GmbH, "For condominiums in the Mitte district, we predict a continued growth in the double-digit range. Within five years, we will achieve a price level of 10,000 euros in the high-end segment."
Berlin has seen a growth of 80,000 people just in 2015! With this type of growth and the stable economic development along with the slow building activity, the price trend for Berlin's housing market is bound to be positive.
Ziegert goes on to say , "For the time being, the city offers potential for opportunistic investors as well as for buyers with a long-term horizon. Compared to London, Paris or Munich, Berlin remains quite affordable and is simultaneously barely exposed to the risk of deteriorating prices."
There are great opportunities for buy-to-let investors, according Ziegert. "Berlin is a city of tenants. While Berliners are beginning to warm to the idea of buying property, many residents will keep renting even if the currently low interest rates would actually put home ownership within reach for them and even if buying is the far more affordable option."
International demand is quite diversified in Berlin. Australia, China, Russia, Italy, UK, France, Spain and the US, but mostly from Israel and Switzerland. "New Zealanders and Sweden love to buy new-built units in Friedrichshain. You also need to remember that quite a number of young Israelis have come to Berlin over the past two or three years," Ziegert said.
According Ziegert true luxury homes are anything above 7,500 euros per square meter. "The effects are to some extent explained by new unit sales and higher market prices," said Ziegert. "Specifically in the price bracket around 5,000 euros, there is now quite a number of offers with fit-out features that, while satisfying a high-end standard, are a far cry from luxurious."