Berlin's real estate market is more popular than ever among cross-border investors. “Emerging Trends in Real Estate Europe 2015,” a survey recently published by the Urban Land Institute (ULI) and the consulting company PricewaterhouseCoopers (PwC) suggests that no other city in Europe is currently favoured by investors as much as the German capital. This means that Berlin has pushed Munich off the throne for the first time ever – or indeed kicked it out of the Top Ten altogether. The only other German city among the Top Five is Hamburg, whereas the Bavarian state capital merely ranked eleventh. The “Emerging Trends in Real Estate Europe” survey is based on an annual poll in which 500 industry experts are asked for their assessment of the investment climate and of the development prospects for European property markets.
Berlin – an Affordable, Fast-Growing Metropolis
For some years now, Berlin has been booming, and the reasons for its attractiveness are perfectly obvious: innovativeness, creativity and urban appeal combine into a fascinating blend here. Berlin no longer needs to fear comparison with cosmopolitan cities like London, Paris, or Rome. Not least because of its recently positive economic development, the number of companies and high-skilled professionals moving to the city has increased with every passing year. Demand for housing in general and for condominiums in particular is growing.
At the same time, homes and apartments in Berlin remain quite affordable compared to other countries. And while price levels in other German cities have more or less stabilised, Berlin's real estate market continues to report brisk price growth. For the time being, rents and prices in Berlin keep showing upside potential, and residential property in the city has every chance of appreciating further.
Forecast: Upward Trend in Transaction Volumes to Continue in 2015
Having been dominated by domestic investors for the longest time, the property market of Berlin with all its perks has lately whetted the appetite of a growing number of foreign investors. The trend is likely to continue. In fact, 83 percent of the experts interviewed by ULI and PwC assume that the share of Asian investors will increase. The respondents also expect the transaction volume to keep expanding in 2015. Asked about the outlook for European property markets, the experts ranked Berlin in fourth place, behind Amsterdam, Athens and Barcelona.