Eighteen years after the fall of the Berlin Wall, which separated capitalist west Berlin from communist east Berlin, this unique city is now finding it’s way as the capital of a reunified Germany. Germany was one of the founding members of the European Union, is a member of the United Nations, NATO and the G8. It is the world’s third largest economy by nominal GDP, and is the largest economy in Europe. Germany has developed a high standard of living and established an advanced system of social security. It holds a key position in European affairs and is recognised as a scientific and technological leader in several fields.

With a population of 3.4 million in its city limits, Berlin is the country’s largest city. It is the second most populous city proper and the ninth most populous urban area in the European Union. Berlin is the third most-visited tourist destination in the EU and is home to world-renowned universities, research institutes, sporting events, orchestras, museums and personalities.

Bargains in Berlin
Much disruption since the Second World War (war damage, occupation, partition and reunification) has made this city unique and for many years made “normal” life impossible. This city, unlike other German and European cities, has had to start from scratch in 1990 and as a result it has been slow to become a property hot spot.

The very impressive regeneration of the city since 1990 coupled with good economic prospects is precisely why many experts think that it is worthwhile to invest in Berlin now, and if you look at the many articles now appearing in the international press you can see that the momentum is building.

Invest in real estate
Berlin has a highly sophisticated rental market, which is in some ways quite different from the UK and Irish markets in that it is geared more for long-term tenancies rather than for the short-term. Rents in Berlin are relatively low compared to other cities in Germany so many Berliners have been content to rent instead of buy.

In fact only around 25% of Berliners reportedly own their own homes (German national average is 43%) and there is a very good demand for rental property. Rents are increasing steadily and from 2005 to 2007 there was a 5.8% increase. The reason for low rental levels is not a reflection on the properties themselves but rather as a result of the many changes that the city has seen. Many investors and speculators expect steady growth in Berlin as the market and the city continues to come in line with other German cities and to the level of an important capital city.

The average tenant is said to rent for eight years at a time and with a strong rental culture and a ready supply of tenants, the buy to let investment market here is surely a sensible prospect. Improvement in the economic fortune of the city is expected over the next few years, and indeed major investment has already transformed parts of the city. So investors are urged to think about Berlin as a long-term investment growing at a steady pace, rather than for a quick turnaround.

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Contact Stephen on 0800 980 7262
or 02890 849 890.
Email: stephen@interlinkireland.co.uk