Investing in property in Berlin is on the rise and is becoming increasingly popular; There is a large growth in prospective buyers and investors that learning just how great the financial returns are in Berlin investment property that is an extremely fast rising business venture.
In Germany there has been an economic increase rate of 2.5 percent that was posted in the year 2006; this has caused Germany to be at its highest level to at its highest level of confidence in about 15 years. The country of Germany is having a great time of economic revival due to its strong export market and rising housing price index, which makes it and very attractive time to invest there.
After many years of its economy being exceedingly sluggish mostly in the eastern parts and especially in Berlin there has been a solid and steady increase in the number of investors, this in turn has kept property prices pretty low. The outlook for mortgages in Germany is very encouraging by the government relaxing on its mortgaging policies, which cause many German citizens to their own homes rather than renting them.
Even throughout the year 2007, the economy has steadily grown by 2.5 percent and now we begin to see that housing prices have begun to rise slightly. Since commercial property and office spaces are very low in cost there have been many European and British investors setting up offices and headquarters there and continual pour money into Berlin. When the Berlin wall fell, the city entered the race with many other larger and advanced cities for economic development like Munich and Frankfurt to name a couple. However there is a particularly unconventional occurrence that is happening in Berlin since property prices are substantially lower in the capital the in less major cities of Germany Berlin investment property has become increasingly attractive.
The districts of Charlottenburg and of Mitte have become the choosiest investment properties, the properties in these districts are some the best deals in highly valued property across the continent. However, in just a few short years the prices of the properties will increase at a very high several times what they are worth now.
Very serious interests have been going into the Berlin investment property arena because of the huge returns it will deliver its investors. The development of Schlosspark-Carre for instance is held up by a ten-year rental agreement by a group of consorting bank, which makes it a great investment opportunity to behold over the entire continent. Another addition to that is complimented by a ten-year maintenance and modernizing plans, with free rental management properties offered up for sale.
When speaking of the population, it is the epicentre of a structured economy, Berlin has a steady population of 3.4 million people which is about the same number of Frankfurt, Hamburg, and Munich cities combined making in the most populated area.
In 2003 there were a little bit more than 1.8 million households in Berlin with each household made up of around 1.8 persons. Over the recent years, this statistic has grown steadily, and by the year 2025, the number of households in Berlin is expected to breach the 2 million household mark. Over an’-year period, this translates to an annual household increase of 8,400. This population expansion would trigger an exodus of big and small investors going into investment property in Berlin, and with the local residents having difficulty getting mortgages for their houses, many would resort to renting or leasing their homes.
This would happen by foreign investors purchasing high yield properties in Berlin and then reselling them to the locals for a decent profit, and Berlin would be the place to do this since it has the essential ingredients for a great property market venture.
The Advantages Of A Berlin Investment Property
In contrast to other investment markets and centres around the world Berlins is a very liquid rental base market. Around 87% of Berlin’s population which comes to about three million some people have decided to rent out their homes instead of buying them for ownership. Near the end of the year in 2008 vacancy rates of Berlin’s rental properties including homes and apartments were extremely low at 3.4 percent. Many profitable options appeared to investors in purchasing “buy-to-let” apartments and other properties giving them a consistent and very profitable income based on renting.
Another advantage in the Berlin investment property arena is the clarity of information which the German authorities give to potential investors. Data such as property prices, rental rates, return on investment and sales, are given accurately and in a straightforward manner to the investors so they are afforded informed decisions and choices in their investments.
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