Is Berlin a Hotspot for Capital Appreciation Potential?
Despite being fashionable, trendy, strategically located at the heart of Europe and the capital of the healthiest European economy, Berlin still remains inexpensive compared to other top capitals, such as London, New York, Rome, Sydney, etc.
The boom in Berlin has revolved around its low rents (rising notoriously), the inexpensive living and the richness in culture, history and multiculturalism, which leads to affordable high quality of life. These factors are attracting big companies and tech-startups to settle in the city, and with them, multitudes of young, highly skilled manpower. This phenomenon of high influx of people in Berlin is currently boosting the residential real estate market with an increase in demand for properties to rent in the city, which is by far exceeding the supply and thus growing at a faster pace. Despite the boom, there is still a broad gap between local prices and European standards, so the potential for capital appreciation is high.
The real estate market in Berlin is healthy, safe and booming. Proof of this is Berlin scoring along with Munich at the top of the rankings of real estate investments destinations in the annual study done by the consulting firm Price Waterhouse Coopers (PWC) called "Emerging trends in real estate in Europe 2013." They state that Berlin is a market to watch and where everyone needs to be in it for the long term these days. It highlights investors' interest in luxury apartments in Berlin-Mitte (city center), which is spotted due to the significant rent increases this district has witnessed over the past years.
Berlin is a city to aim for capital appreciation potential. For example, prices for new apartments in Berlin increased by 13,1% from 2012-2013, as shown in indexes by Germany's biggest property portal, Immobilienscout. Furthermore, vacancy rates are less than 2% and demand for flats for rent is immense.
Going back to the study conducted by PWC, it is stated that a decisive factor for European investment locations is the long-term trend of demographics. Berlin is ranked as a hotspot for investing in real estate, with a population of 3.5 million that is rapidly increasing, especially by newcomers from other EU countries, and exceeding forecasts of population growth.
All in all, Berlin's property market is the perfect investment scenario: what a better combination than comparatively low prices in a promising and booming city, along with high capital appreciation potential and exceeded demand for properties to rent out where reliable tenants are easily found?
Berlin Capital Investments specializes in offering the best of investing opportunities in Berlin: exclusive off-plan apartments in the center of Berlin in the trendy and classy district of Berlin-Mitte, with high capital appreciation potential. We advise our clients in what suits their needs better and manage their assets if required, also assisting in financing and legal issues with our exclusive network in the city.