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7 Reasons to Invest
Invest in Berlin
Berlin is developing into a leading real estate market on the international scene.
With an investment in the increasingly popular Berlin real estate market, you purchase a secure property with a good yield.
Using our in-depth knowledge and extensive international experience, we consult with you to help you safely acquire your property.
We strive to earn the trust of our clients by presenting only good quality properties from reliable owners.
There are a number of reasons to invest in a property in safe and secure Berlin. We offer you seven of them below.
Seven Reasons to Invest in Berlin
1. The typical yield of Berlin properties is between 4%-10%.
2. Purchasing prices are some of the lowest in Europe.
3. German tenants tend to stay long term and pay their rent on time.
4. Germany has a legal system that offers very good protection to the property owner.This system is also backed by the EEC.
5. Low mortgage rates are provided by German banks.
6. Berlin is backed up by the very strong German economy.
7. Prices are expected to rise further.
For more information about Berlin and Germany click here.
1. The typical yield of Berlin properties is between 4%-10%.
An apartment block or a single flat in Berlin provides a typical return (through rent payments) of 4%-10%.
2. Purchasing prices are someof the lowest in Europe. With so much demand, why are the property prices still so much lower than other cities?
Berlin’s recent history helps explain its low property prices. The reunion of the City’s two parts was accompanied by a vastly expanded residential and commercial property supply for which there was not enough demand. As a result, property prices dropped. Making the situation worse was the 1990’s recession, which put more pressure on real estate prices. The birth of the Euro further complicated matters. Since then, property prices have been slowly recovering from their depressed 1990’s levels. However, even as its prices rise, Berlin’s real estate remains highly undervalued. Market experts believe that real estate values in Berlin are about 30% below the German average prices.
Hence, large financial institutions such as Goldman Sachs and Morgan Stanley have been acquiring Berlin real estate investments worth billions of Euros. Their timing was right, as prices in Berlin have been appreciating significantly since 2004.
3. German tenants tend to stay long term and pay their rents on time. The majority of the citizens of Berlin prefer to rent a flat for a long term. Low rents subsidized by the government have encouraged Berliners to rent. Rental agreements are usually for an unlimited period, and tenants often stay in the same flat all their lives, with their children following on. Hence, a tenant in Berlin can be considered as a reliable partner bypaying rent on time. Although Berliners still prefer to rent than to purchase a property, this may be about to change. As rents increase, some will start to consider buying. This will push the demand for properties and property prices in the future.
4. Germany has a legal system that offers very good protection to the property owner. This system is also backed by the EEC.Germany has a modern constitution and is a democracy at the heart of Europe. Its constitution and its legal system protect the rights p of individuals and investors. The interpretation of the constitution and the administration of the country’s laws for in coordination with the EEC creates extensive security for individuals and investors.
5. Low mortgage rates are provided by German banks. Mortgages can be easily obtained from German Banks. The loan amount lies by 80% - 85% of the property’s value. Interest rates are currently very low and can be as low as 4%. They are offered on a variable basis or could be fixed for a number of years. Berlin Yield Estate works with the leading banks and financial institutions of Germany, such as Deutsche Bank or Creditweb.
This means that through our in-depth market knowledge we can obtain the lowest lending rates for you. Our real estate agents usually take over the entire financing process for our international clients.
6. Berlin is backed up by a very strong German economy.
After the crisis, Germany experienced healthy economic growth. This is being reflected in the property prices of a growing Berlin. After a small break during the recession, property prices of Berlin are again increasing. Germany is the most popular country in the world. According to the BBC World Service, Germany became the country of choice for the second time in a row. Berlin shares in Germany’s popularity, and is an economic center of Germany. An increasing number of firms from India and China have shown interest in investing in Berlin. In addition, some companies in Russia and Denmark have expressed a preference for starting businesses or opening branches in Berlin.
7. Prices are expected to rise further.Real estate values were appreciating as demand has accelerated. Marketobservers expect purchase prices and the rents to rise further. Increasing prices driven by increasing demand in addition to a currently low level of home ownership (about 16% according to Investitions Bank Berlin) and rising rentsare strong supports for a property boom in Berlin. This could be backed by the new government initiatives, which would subsidize homebuyers who wish to jump on the property ladder. Hence, experts forecast a market correction and recommend investing in Berlin now, as the timing is right.
Berlin is developing into a leading real estate market on the international scene.
With an investment in the increasingly popular Berlin real estate market, you purchase a secure property with a good yield.
Using our in-depth knowledge and extensive international experience, we consult with you to help you safely acquire your property.
We strive to earn the trust of our clients by presenting only good quality properties from reliable owners.
There are a number of reasons to invest in a property in safe and secure Berlin. We offer you seven of them below.
Seven Reasons to Invest in Berlin
1. The typical yield of Berlin properties is between 4%-10%.
2. Purchasing prices are some of the lowest in Europe.
3. German tenants tend to stay long term and pay their rent on time.
4. Germany has a legal system that offers very good protection to the property owner.This system is also backed by the EEC.
5. Low mortgage rates are provided by German banks.
6. Berlin is backed up by the very strong German economy.
7. Prices are expected to rise further.
For more information about Berlin and Germany click here.
1. The typical yield of Berlin properties is between 4%-10%.
An apartment block or a single flat in Berlin provides a typical return (through rent payments) of 4%-10%.
2. Purchasing prices are someof the lowest in Europe. With so much demand, why are the property prices still so much lower than other cities?
Berlin’s recent history helps explain its low property prices. The reunion of the City’s two parts was accompanied by a vastly expanded residential and commercial property supply for which there was not enough demand. As a result, property prices dropped. Making the situation worse was the 1990’s recession, which put more pressure on real estate prices. The birth of the Euro further complicated matters. Since then, property prices have been slowly recovering from their depressed 1990’s levels. However, even as its prices rise, Berlin’s real estate remains highly undervalued. Market experts believe that real estate values in Berlin are about 30% below the German average prices.
Hence, large financial institutions such as Goldman Sachs and Morgan Stanley have been acquiring Berlin real estate investments worth billions of Euros. Their timing was right, as prices in Berlin have been appreciating significantly since 2004.
3. German tenants tend to stay long term and pay their rents on time. The majority of the citizens of Berlin prefer to rent a flat for a long term. Low rents subsidized by the government have encouraged Berliners to rent. Rental agreements are usually for an unlimited period, and tenants often stay in the same flat all their lives, with their children following on. Hence, a tenant in Berlin can be considered as a reliable partner bypaying rent on time. Although Berliners still prefer to rent than to purchase a property, this may be about to change. As rents increase, some will start to consider buying. This will push the demand for properties and property prices in the future.
4. Germany has a legal system that offers very good protection to the property owner. This system is also backed by the EEC.Germany has a modern constitution and is a democracy at the heart of Europe. Its constitution and its legal system protect the rights p of individuals and investors. The interpretation of the constitution and the administration of the country’s laws for in coordination with the EEC creates extensive security for individuals and investors.
5. Low mortgage rates are provided by German banks. Mortgages can be easily obtained from German Banks. The loan amount lies by 80% - 85% of the property’s value. Interest rates are currently very low and can be as low as 4%. They are offered on a variable basis or could be fixed for a number of years. Berlin Yield Estate works with the leading banks and financial institutions of Germany, such as Deutsche Bank or Creditweb.
This means that through our in-depth market knowledge we can obtain the lowest lending rates for you. Our real estate agents usually take over the entire financing process for our international clients.
6. Berlin is backed up by a very strong German economy.
After the crisis, Germany experienced healthy economic growth. This is being reflected in the property prices of a growing Berlin. After a small break during the recession, property prices of Berlin are again increasing. Germany is the most popular country in the world. According to the BBC World Service, Germany became the country of choice for the second time in a row. Berlin shares in Germany’s popularity, and is an economic center of Germany. An increasing number of firms from India and China have shown interest in investing in Berlin. In addition, some companies in Russia and Denmark have expressed a preference for starting businesses or opening branches in Berlin.
7. Prices are expected to rise further.Real estate values were appreciating as demand has accelerated. Marketobservers expect purchase prices and the rents to rise further. Increasing prices driven by increasing demand in addition to a currently low level of home ownership (about 16% according to Investitions Bank Berlin) and rising rentsare strong supports for a property boom in Berlin. This could be backed by the new government initiatives, which would subsidize homebuyers who wish to jump on the property ladder. Hence, experts forecast a market correction and recommend investing in Berlin now, as the timing is right.