Marlborough International Property Ltd
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Berlin Investor Guide
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Berlin Investor Guide
28th May 2007
 KEY FACTS OF BERLIN:
Capital City of Germany
Strong Rental Yields of 6%-10%
Low vacancy rates
Population of over 3.5 million
High quality properties at affordable prices
Marlborough International can introduce buyers to rental agencies, legal firms and organise furniture packages pior to purchase
Berlin, the capital of Germany, has over recent years, begun to show signs of recovery from the steady decline the city’s property market endured since 1994. Property prices fell heavily during the period between 1994 to 2004. However during the last decade, Berlin has undergone a major facelift in terms of a large scale renovation of buildings and improvement of the city’s amenities and infrastructure.
There are 23 districts in total and with a population of over 3.5 million, Berlin is a huge city, with diverse cultures and unique quarters throughout.
Mitte, (meaning “The Center”) is the central district of Berlin and contains many of the city's oldest buildings. This is a bustling district of contrasts with beautiful architecture dating back to the Middle Ages coupled with the futuristic architecture of the glass department store, Galeries Lafayette.
From an investor’s point of view, the districts that surround Mitte; Kreuzberg, Friedrichshain, Prenzlauer Berg and also Tiergarten presently offer investors strong rental yields with excellent potential for capital appreciation in the long term.
Irish investors have been leading the charge for foreign investment in the Berlin property market which has also seen large global financial institutions buying residential and commercial property for its pension funds.
As both business and consumer confidence begin to regain strength, the common consensus is that the Germany economy is on the road to recovery. There are a number of economic factors behind this belief;
- company profits have been rising quickly
- unemployment rate is falling
- economic reforms have been implemented which should facilitate this growth
- labour costs are growing at a significantly slower rate than the rest of Europe
- plenty of scope for growth in house prices, home ownership is at 13% only!
- Rental yields in Berlin are attractive, ranging from 6-10% depending on location
The crystal ball question that every investor wants the answer to is:
How Long Will I Need To Hold My Property Investment?
From a tax perspective, generally speaking capital gains tax is exempt once the investor holds the property for a minimum of 10 years. However the German tax system is complex and any investor should take professional advice before investing.
From an investment perspective, we would view German property investment as a long term investment. Long term may mean 7 years but it could easily be longer. The term of the investment will depend on how quickly the German economy absorbs the reforms that are being implemented at the moment, this in turn will have a positive effect on both the residential and commercial property markets.
Marlborough International Property will be able to guide you through the investment process of buying property in Berlin, from sourcing the right property for you to providing expert advice.
We would advise any investor thinking of buying investment property to visit Berlin prior to purchasing. Marlborough International Property will organise for our German colleagues to meet potential investors, provide tours of our properties and also offer local knowledge and advice.
For further information please contact us at 01-4964134
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With 5 years experience selling homes overseas, Marlborough International Property help you realise your property dream. Simply contact us to talk to a customer advisor.
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