Coveted Inner-City Locations
Investing in a condominium in Potsdam thus combines attractive yield opportunities with a low risk exposure, according to the experts. Meanwhile, the land valuation committee found that property demand is keenest in inner city locations. Condominiums with convenient transportation access and superb social and cultural amenities were particularly popular. In downtown locations, buyers favoured listed properties because the associable capital allowances represent a serious financial incentive – and this even though free-standing homes and vacant plots are readily available for much less on the city's periphery. All in, the number of condominiums sold in Potsdam in 2015 totalled 1,098, implying a year-on-year increase by 42 percent. The priciest ones were apartments built before 1960 and changing hands for the first time. Given an average cost of 4,300 euros per square metre of residential floor area, the average price tag read 389,000 euros.
According to the land valuation committee, the run on real estate in Potsdam cannot be explained by the low level of interest rates alone. Rather, the committee suspects that buyers are attracted by the high value retention that real estate assets in Potsdam promise.