Berlin is the third biggest tourist city in Europe, the government centre of Germany and educational centre of Germany. Berlin is also the capital city of Europe’s biggest economy. Germany remains the world's largest exporter and is ranked as the 5th most competitive economy in the world- above the UK, Canada and Japan (source: Deloitte).

Germany has been in recession mainly due to the massive costs associated with merging the old east with west following the demise of the Berlin wall in 1989. This could lead to the Berlin property market being the bargain of the decade. With the German economy in recovery and domestic property purchase becoming more popular (Germans have traditionally rented their apartments) the scene is set for increases in values from a rock bottom, almost bargain basement start! Property in this city is currently being snapped up by international investors - large and small alike

Low Prices in comparison to other capital cities

Compare the average approximate price per square metre to buy a city centre apartment:

Investment has poured into Berlin over the last decade to ensure it is at the forefront of Germany’s economy. Over the last seven years alone the Berlin government has invested €75 billion in the city and its transport infrastructure.

Germany has the most affordable housing in the western world
Changing market dynamics are likely to drive up home-ownership from its current rate of 43% (lowest of any industrialised nation) and so capital values
Net yields are amongst the highest in Europe
An increasing demand for quality housing due to a rising population, growing living space requirements and a lack of investment is likely to drive capital growth
Many commentators predict the corner is being turned in the wider German economy, driving an improvement in consumer and business confidence
Over €25 billion invested in German property by private equity funds in the last 24 months
Secure legal infrastructure of Europe’s largest economy

High yields in comparison with other capital cities

Average gross yields in London and Paris are now generally below 5%. Its hard to cover the interest let alone have decent cash flow. In Germany you can borrow at around 4 to 5% and earn above 6% and sometimes as high as 8%

More Berliners will start to purchase property

Only approximately 13 - 18% of Berliners own their own property. This is due to subsidised housing from the old east German government. However as rents rise, more people are opting to buy and prices look like they will rise accordingly.

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