Germany's capital is experiencing a run on condominiums at the moment: This is one of the findings of the 2012/2013 Property Market Report published by Berlin's Land Valuation Committee. Once a year, the independent committee evaluates all property deeds signed in the course of the past year, and gathers the results in a report.
Increased Sales on Berlin's Property Market in 2012
The 2012/2013 Property Market Report reveals: There is a robust demand for flats and residential buildings in Berlin. The low level of interest rates and the Euro crisis make investments in Berlin's stable real estate market particularly attractive. Property worth 12.75 billion euros changed hands in 2012, which is the third-highest total since Germany's reunification in 1990. The only years with higher turnovers were 2006 and 2007, each grossing more than 14 billion euros. The growth in sales compared to 2011, which is tantamount to 15 percent, is mainly explained by increased purchase prices. Year on year, the number of signings increased by three percent in 2012. The land valuation committee registered a total of 33,581 sales transactions for real property in Berlin in 2012. A drilldown of the sales transactions by boroughs reveals: Charlottenburg-Wilmersdorf takes the lead with 4,244 transactions. Runner-up is Pankow with 4,183 transactions, and Mitte third in line with 3,722 properties sold.
Berlin's Land Valuation Committee: More Condominiums Created
The Land Valuation Committee also diagnosed a increase in the number of condominiums sold in Berlin. In 2012, nearly 26,000 units changed hands in the city, a year-on-year increase by six percent. In terms of the number of deed signings, Charlottenburg-Wilmersdorf again took the lead among Berlin's boroughs. Mitte was second, while Pankow ranked third.
In response to the keen demand for condominiums, the number of condominiums created went up by 39 percent last year when compared to 2011, rising to 10,812 units. The total number of condominiums created includes both newly completed buildings and rental flats converted into individual freehold units. The growth in converted flats was particularly brisk: While 4,744 rental flats has been converted into condos in 2011, the year-end total rose to 7,264 by the end of 2012. New flats either completed or under construction in 2012 totalled 3,548, up from 3,050 in 2011. Berlin's Land Valuation Committee expects the demand for condominiums to remain just as high in 2013.