Berlin is one of the most dynamic cities in Europe, constantly changing, adding population, growing both economically and culturally. The statistical data of the last several years demonstrates that, despite the dire economic situation in Europe and worldwide, real estate in Berlin continues to add in value, and right now buying an apartment in Berlin is a great way to invest in European real estate. A well-purchased apartment can be rented easily and will continue to grow in price as well.
What is the explanation behind the real estate market stability in Berlin? The first reason is the growing population: compared to other major cities of Europe, living in Berlin is relatively cheap, finding work here is easier than in smaller cities, and Berlin attracts not only Germans from other parts of the country, but also citizens of other states. Second, the economy in Germany in general is stable and has been demonstrating growth. There are no restrictions imposed on foreigners looking to buy an apartment in Berlin, so a lot of capital comes onto the market from abroad. Third, even now the bank policies on mortgages is forgiving, allowing buyers to borrow credit with little difficulty and low interest.
Which neighbourhood in Berlin is best for buying? Of course, the answer directly depends on goals and financial capabilities of a buyer. With a hefty enough budget, the foolproof option is buying property in Charlottenburg. This is a central area, formerly part of the Western Berlin, with real estate of really high quality, whose prices grow stably. Living in Charlottenburg is comfortable and safe, and for this reason, despite the increase in monthly rent, there is no shortage of tenants willing to rent an apartment in Charlottenburg. Among other expensive areas are Friedrichshain, Kreuzberg and Wilmersdorf.
Apartments in the lower segment of the market are recommended for your own use and/or future reselling. Many areas in Berlin are actively being redeveloped, and real estate in these areas is often undervalued, so you have a good change to purchase a good apartment for a moderate price. For example, in 2009 price growth in Berlin's "economy-class" district, Spandau (the north-western area of Berlin), exceeded the overall price growth in the city almost 10 times.
A correct choice of the area in Berlin, the final price negotiations, the size of the initial deposit and the dates of closing the deal, an estimate of the cost of necessary renovations, the likelihood of mortgage approval and obtaining a vacation rental license - all these questions and many others are easier resolved with a professional consultant on the buyer's side. If you are interested in purchasing real estate in Berlin, do not hesitate to contact our agents in Berlin. You can do so by filling the feedback form or contacting us by phone.