Montag, 8. Oktober 2007

American Hipsters and Hollywood Stars Invade Berlin

By Kate Connolly, The Observer UK

Posted on October 8, 2007

It's not, is it? Clint Eastwood downing a beer in the Helmut Newton Bar, John Cusack cycling along a cobbled street, Matt Damon strolling through a courtyard of fashion boutiques drawing on a cigarette? Nearly two decades after the fall of the Berlin Wall, the cultural life of the city has suddenly exploded again and is propelling it on its way to becoming the new New York.

Hollywood stars are rapidly discovering the once divided city, lured by its sizzling creativity and raw charm. Brad Pitt and Angelina Jolie are just the latest to have bought a home -- a loft apartment in the trendy district of Mitte in the former communist East Berlin. Tom Cruise is considering the more sedate lakeside area of Wannsee.

Their arrival and that of other celebrities in love with Berlin's grittiness, its disrespect for authority, the lack of paparazzi, even its lax smoking laws, is part of a wider trend -- creative Americans are discovering Berlin.The city is increasingly said to have the edge over New York as an international centre of art and creativity that many say America's cultural capital started to lose 20 years ago, when they began scrubbing the graffiti from the subways."Berlin is like New York City in the 1980s," proclaimed the New York Times.

"Rents are cheap, graffiti is everywhere and the air crackles with a creativity that comes only from a city in transition."New York artists have been moving here in droves, lured by low rents and an 'anything goes' atmosphere. According to Damaso Reyes of the cultural magazine Krax: 'Gone are the days when up-and-coming painters such as Jasper Johns and Robert Rauschenberg could rent a huge loft in Manhattan for just a few hundred dollars a month.'Naturally the art dealers have followed the artists.

A year ago Robert Goff opened a branch of his New York gallery Goff + Rosenthal, citing Berlin's 'energy as a city in which artists can actually afford to live'.The creative atmosphere has snowballed, with more and more artists drawn in. David Krepfle has swapped a loft under the Manhattan Bridge for a leafy street in east Berlin. The move has enabled him to concentrate on his bold paintings rather than on worrying about the bills. Those who have left the US because of the Bush administration's foreign policy see Berlin as a land of exile.Long-term residents of the city who cite high unemployment, empty coffers and smelly drains cannot understand the hype.

But glamour is not what lures the "Amis," as Berliners refer to Americans, rather the lack of it. The makeshift nightclubs in railway stations, lofts and warehouses are an antidote to the slickness of Manhattan or LA.It took Berlin a long time to recognise the value in its creative talent and the extent to which it drives the city whose mayor refers to it as “poor but sexy.”

Some 114,000 people are employed in the creative industry, a rise of 50 per cent in a decade, and Berlin is home to a tenth of all Germany's creative professionals, many of whom filled gaps left by traditional industries.Neither has it taken long for the Berlin buzz to seep through to Hollywood. Studio Babelsberg in Potsdam, which had its heyday in the 1920s, has had admirable success in recent years in drawing in big-name producers attracted not just by government subsidies and an efficiency that enables them to produce to budget, but by Berlin's coolness.Several major productions are currently shooting in Babelsberg, including Tom Cruise's controversial Valkyrie, directed by Bryan Singer, about the July 1944 plot to kill Hitler, while ex-wife Nicole Kidman has just arrived to start filming the adaptation of Bernhard Schlink's novel, The Reader.

"It used to be that producers came to us, but now it's the other way round," a member of a Babelsberg investment team says.The love appears to be mutual. Not since the 1930s, when film directors fled Nazi Germany to find refuge in the US, have Germans been so much in demand in Hollywood. Names of the moment include Marco Kreuzpaintner, Christian Alvart, Sandra Nettelbeck and Florian Henckel von Donnersmarck, creator of the Stasi drama The Lives of OthersGerman gossip magazines, which until a few years ago had little choice but to concentrate on home-grown celebrities, now have a field day with news of who's in town. Jennifer Lopez was spotted in the riverside warehouse nightclub Spindler and Klatt, Norman Mailer was observed -- but not hassled- wandering through the streets, and Robert De Niro was seen eating schnitzel in the elegant Borchardt restaurant.

Pitt and Jolie favour the swish Swiss restaurant Nola's in a converted public convenience in Mitte, while Willem Dafoe is drawn togrittier haunts like Markthalle in rebellious Kreuzberg and Jude Law likes to woo his new flame, 26-year-old model Susan Hoecke, at Shiro i Shiro.British artists are also getting in on the picture. Helping to shape Berlin's creative landscape is the architect David Chipperfield. Berlin is waiting with bated breath for his reworking of the city's historic Museum Island, a World Heritage site, which, cultural chiefs say, will rival the Louvre. The vision is that Chipperfield's glass and steel colonnade-style construction will turn Berlin into nothing less than the "new Paris.

source: http://www.alternet.org/story/64641/

Donnerstag, 4. Oktober 2007

Why Berlin?



Berlin of late has become one of the world’s most exciting capital cities. Forget Paris, New York or London – Berlin is now attracting people from far and wide! The relaxed co-existence of diverse lifestyles, the openness allows newcomers to easily fit in.

Everyone’s welcome here to add his own part to the fabric of this fine town. It’s friendly, safe and easy to get around. Whether for investment or to take up residence

Berlin is the right place to own property.

Just a few reasons . . .

  • Very low living costs & high standard of living
  • Excellent public transport system
  • One of the world’s safest cities
  • Major world art city
  • International and tolerant inhabitants
  • Relaxed road traffic
  • Exciting nightlife
  • Many direct flights
  • Rated lowest property price of European capitals
  • Greenest European capital

Dienstag, 2. Oktober 2007

Berlin´s Neighborhood Developments by Area - MAP

Berlin's "Social Development Status" by area (Entwicklungsindikator Soziale Stadtentwicklung)

Berlin is a huge city, and if you're not familiar with it, it's not always easy to judge what a certain area's "character" might be like. Viewed from the streets, some districts can look quite attractive, but this isn't always a reflection of the social structure behind the fassades. The city government has just released a "Social Development Status Atlas" (Entwicklungsindikator Soziale Stadtentwicklung, pictured right) which provides an easy-to-understand overview of where's hot, and where's not quite so hot

The map colours represent the following status levels:

sehr niedrig (red): very low status
niedrig (orange): low status
mittel (lavender): medium status
hoch / sehr hoch (green): high / very high status

(Grey represent non-residential areas, while non-built up areas such as parkland and forest are white).

The status levels are based on a combination of "social status" and "social dynamic", calculated on the basis of social statistics (income, rent levels, employment situation etc.). Understandably the outer suburbs are mainly green, while the "problem districts" of southern Reinickendorf, Moabit, Wedding, northern Neukölln and parts of Kreuzberg are red.

The inclusion of a "social dynamic" factor in the calculations means, interestingly, that the orange areas are undergoing a positive development from a low level. This is particularly true of southeastern Kreuzberg, which was red on last year's map.

More detailed information is available from the city website here (German only).

Montag, 24. September 2007

Lively, Laid-Back Berlin

Germany's capital offers modern architecture, design, and great food—at bargain prices

Ever since Germans from both sides danced on the Berlin Wall in 1989, ending 40 years of communist rule in the East, Germany has toiled to transform a scarred enclave into a world-class capital. Although Berlin's makeover is far from complete, the city has become one of Europe's most vibrant cultural centers.

Even if business doesn't take you there, it's worth a side trip from London or any city on the Continent. Famous for its museums and world-class music, Berlin now boasts eye-catching modern architecture, a thriving contemporary art scene, a boom in design and concept stores, and serious global gastronomy.

It's also a bargain: Luxury hotels are among the cheapest in Europe, and an ice cream cone that costs $5 in London is $1 here. As Mayor Klaus Wowereit says: "Berlin is poor, but it's sexy."The city hums with life yet is not frenetic, despite a population of 3.4 million. Traffic is tame, and residents are decidedly unharried. Walk into any café and people are more likely to be reading philosophy and fiction than stock reports. "Berlin is about the good life. The city does not move fast. There's not a lot of pressure," says Nicola Bramigk, founder of online travel guide Smart Travelling.

Choosing which facet of Berlin to explore first is the hard part. For a quick overview of the historic center, take a one-hour boat ride ($14) down the river Spree past museum island, home of the Pergamon, the Bode, and the Old National Gallery. If you have time for only one of the city's 153 museums, a good bet is the Pergamon, which houses Babylon's stunning 47-foot-high Ishtar gate, constructed in 575 B.C.The refurbished government quarter is the best place to see 21st century Berlin.

British architect Norman Foster remodeled the house of Parliament, or Bundestag, in the '90s, adding a striking glass dome over the plenum—a visual symbol of reunited Germany's commitment to transparency and democracy. Other government buildings echo the glass-and-light theme, making the area stunning to view at night.

UNSPOILED LAKES, TOO

The Mitte District is a focal point of Berlin's creative spirit. Contemporary art galleries, designer ateliers, eclectic concept stores, and cafés line Auguststrasse and Linienstrasse. You can also immerse yourself in film subculture, dive into the Cold War past at the museum of the Stasi (East Germany's secret police), or wander into the many enticing inner courtyards full of cafés, shops, and exhibits.A surprising aspect of Berlin is its proximity to a belt of unspoiled lakes and outdoor activity.

Schlachtensee ("see" means lake) is a 30-minute ride by train or car from the city center. A ring of lush green pine trees surrounds the water, and willows bent over the shore reflect on the surface. Stroll around the lake, rent a boat, take a dip if the weather is warm enough, or enjoy the view from the terrace at the Café Fischerhütte am Schlactensee.In Berlin a five-star hotel is half the price of those in London and Paris, so book a room at the Mandala hotel at Potsdamer Platz at weekend rates as low as $250 a night. The breakfast buffet—a spread of meats, cheeses, pastries, jams, and fresh salmon that looked like an artist's creation—was the most perfect I've had in 20 years of European travel. At night, the same room becomes one of Berlin's best restaurants, Facil.

Another gem is Rocco Forte's Hotel de Roma, with its monumental façade and entryway, red-and-black décor, and massive furnishings. The spa is wonderful. Terraces offer panoramic views from the rooms, which are often $300 a night on weekends.Borchardt's is the hip address for dinner, with its blend of French and Mediterranean cuisine (dinner for two, $130). The Art Deco interior, with its high ceilings, mosaics, and massive columns create the ambiance of a Parisian brasserie.

Café Einstein on Kurfürstenstrasse is quintessential Berlin: Bring a book and snuggle up in the corner with a glass of wine or a schnitzel. Vau and Margaux are Berlin's two gastronomic temples, each awarded a Michelin star. Italian restaurant Bocca di Bacco is a favorite of celebrities during the Berlin Film Festival.Off the beaten track is Oki on Oderbergerstrasse in Prenzlauer Berg, a tree-lined residential zone. Oki marries Japanese and northern German cuisine with Spätlase rieslings. But the wait can be long since owner-chef Otto Pfeiffer rustles up all the food alone in the kitchen.

Berlin is easy to get to by train or air. Its centrally located, modern glass-and-steel train station by architect Meinhard von Gerkan is Europe's largest. Low-cost fares on Air Berlin and easyJet abound, and flights from most European cities are only an hour into Tegel International Airport, an uncrowded gateway that is a breeze to escape from quickly after landing. That accessibility is a plus because one visit just scratches the surface of this vibrant city.

AUGUST 8, 2006 Design By Jude Stewart

source: http://www.businessweek.com/magazine/content/07_39/b4051068.htm

Donnerstag, 20. September 2007

Ballymore invests €155 million on Berlin property

Ballymore, the property development and investment group, announced today that it has purchased the Kudamm Karree, approximately 93,000 square metres (1 million square feet) of mixed-use real estate on Kurfürstendamm in the centre of Berlin. The vendor is Fortress Capital and the consideration is €155 million.

The Kudamm Karree comprises retail, office, restaurant, residential, theatre and car park space on the most important shopping street in the German capital. The Karee, which covers approximately 2 hectares (4.9 acres), is a landmark site. Ballymore plans a programme of refurbishment, renovation and redevelopment for the properties.

Sean Mulryan, Chairman and Chief Executive of Ballymore, said:

This is a stunning location in the very heart of one of the great cities of the world. We plan to further develop and enhance the Kudamm Karee to make it an appealing destination for Berliners and visitors alike. This demonstrates our global focus on large scale mixed use developments in prime locations.”

The world-famous Kurfürstendamm, known to Berliners simply as "Ku'damm," is Berlin's most popular shopping street and promenade.

Ballymore is one of Europe’s largest property developers and investors. It’s most significant interests are in the UK, Ireland and the countries of Central and Eastern Europe. It currently has 58 major projects under construction or in planning. The total built areas of its projects is over 4 million square metres (43 million square feet). It is a privately-owned business with principal offices in London and Dublin.

Mittwoch, 19. September 2007

Upper Eastside Berlin : Luxus-Quartier an der Friedrichstraße



Bisher ging es an der Friedrichstraße Ecke Unter den Linden fast nur in die Tiefe.

Bisher ging es an der Friedrichstraße Ecke Unter den Linden fast nur in die Tiefe. Nun soll es auch in die Höhe gehen. Nach monatelangen Abriss- und Schachtarbeiten wird heute der Grundstein für die Neubebauung des 6000 Quadratmeter großen Eckgrundstücks gelegt. An Berlins prominentester Kreuzung will die Münchener Meag AG ein Wohn- und Geschäftshaus der Extraklasse errichten. Mit Bezug auf den New Yorker Nobel-Stadtteil Upper Eastside wird das 200 Millionen Euro teure Ensemble mit dem Namen "Upper Eastside Berlin" international vermarktet.

Gleich drei namhafte Architekturbüros hat die Meag - eine Tochter des Versicherungsriesen Münchener Rück und der Ergo-Versicherungsgruppe - für das Prestigeprojekt engagiert: Das Büro Gerkan, Marg und Partner, das in Berlin unter anderem den Hauptbahnhof konzipierte, ist für die Ausführungsplanung zuständig. Die Büros von Romano Burelli (Venedig) sowie von Petra und Paul Kahlfeldt (Berlin) wurden mit der Gestaltung von zwei Abschnitten der Außenfassade beauftragt. Bereits Ende 2008 soll das achtgeschossige Gebäudeensemble fertiggestellt sein. Während die unteren zwei Geschosse dann Platz für exklusive Geschäfte bieten werden, sind laut Meag die oberen Etagen für Büros und Wohnungen "der gehobenen Klasse" reserviert. Gastronomische Einrichtungen, die die Nachfolge des im Zweiten Weltkrieg zerstörten legendären Cafés Victoria antreten könnten, sind bislang nicht vorgesehen.

Wegen seiner Kompaktheit ist der Neubau durchaus umstritten. Sorgt er doch unter anderem dafür, dass die Friedrichstraße in diesem Bereich von vier auf zwei Spuren verkleinert wird. Der Senat sieht das Projekt jedoch als wichtigen Beitrag zur Wiederherstellung historischer Stadtstrukturen an.

Quelle: http://www.morgenpost.de/printarchiv/berlin/article219416/Upper_Eastside_Berlin_Luxus_Quartier_an_der_Friedrichstrasse.html


Freitag, 7. September 2007

Eurocastle Sells Berlin Property for 155 Million Euros.

ST PETER PORT, Guernsey, September 21 /PRNewswire/ -- Eurocastle Investment Limited (Frankfurt Stock Exchange: EUI1 and Euronext Amsterdam: ECT) today announced that it has agreed to sell the Kudamm Karree building in Berlin which it acquired earlier this year as part of the Mars portfolio. The property is mixed-use retail and office complex totaling circa 63,000 sqm.

The property is a redevelopment project and was part of Eurocastle's non-core portfolio. The gross sale price is EUR155 million. The transaction will realize a gain (net of all costs) of approximately EUR23 million, or ...

(Read the rest of the article at HighBeam Research)

Samstag, 11. August 2007

Großes Preis-Plus für Berliner Einfamilienhäuser

Einfamilienhäuser und Eigentumswohnungen sind nach Angaben des ifs Instituts für Städtebau, Wohnungswirtschaft und Bausparwesen (Berlin) 2006 in vielen deutschen Regionen erheblich teurer geworden.

Einfamilienhäuser und Eigentumswohnungen sind nach Angaben des ifs Instituts für Städtebau, Wohnungswirtschaft und Bausparwesen (Berlin) 2006 in vielen deutschen Regionen erheblich teurer geworden. Berlins Eigenheime lagen dabei sogar auf Platz 2, weil sie sich um 8,6 Prozent auf durchschnittlich 249 300 Euro verteuerten, knapp hinter Hamburg (plus 9,1 Prozent auf 295 100 Euro). Allerdings: Die Eigentumswohnungen der Hauptstadt sollen sich um 6,8 Prozent auf 114 800 Euro verbilligt haben. So ungewöhnlich stark rauf, so stark runter - diese Zahlen verwirren.

"Das vielfach verknappte Wohnungsangebot wird in nächster Zeit zu weiteren Preissteigerungen führen", sagt Stefan Jokl, Leiter des Instituts für Städtebau, Wohnungswirtschaft und Bausparwesen (ifs, Berlin). Nach einigen Jahren Preiskonstanz dürfte es in den meisten Regionen "inzwischen eine Trendwende bei der Preisentwicklung gegeben haben".

Um einen Kommentar gebeten, nährt Jokl erst einmal die Zweifel an der Eigenheim-Preisexplosion. Die Zahlen für Berlin litten darunter, dass es hier einen "engen Markt" mit starken Schwankungen gebe.

So rechnete das ifs. Es übernimmt Untersuchungen des Hamburger Gewos-Instituts über sämtliche 424 900 Verkaufsfälle (Neubau und Gebraucht-Immobilien) von Einfamilienhäusern und Eigentumswohnungen, davon 361 700 in Westdeutschland und 63 200 in Ostdeutschland. Dann teilt das ifs alle erzielten Kaufpreise durch die Zahl der Kauffälle. Diese Rechnung ergab bei den Eigenheimen für Berlin einen Durchschnitt von 249 300 Euro.

Rein theoretisch könnten das 100 verkaufte 100-qm-Häuser zu je 249 300 Euro gewesen sein - der statistische Idealfall. Es könnte sich aber auch um eine verkaufte Supervilla zu 8,4 Millionen Euro und 99 Häuser zu knapp 167 000 Euro handeln.

Oder anders gerechnet: Wenn in diesem Jahr fünf Luxusvillen (à 2,2 Millionen Euro), 50 großzügige 160-qm-Eigenheime (à 400 000 Euro) und 50 kleinere Häuser (à 150 000 Euro) in Berlin verkauft würden, käme ein Durchschnittspreis von gut 366 000 heraus - eine sensationelle Preissteigerung von 47 Prozent. Solche Beispiele nähren die Statistik-Zweifel. "Was verkauft wird, sind jedes Jahr immer wieder andere Häuser und Wohnungen - und nicht die aus dem Vorjahr", sieht auch Jokl die Ungenauigkeiten, die bei einer Rechnung ohne Quadratmeterpreise die Folge sind.

Eng sei der Markt auch bei den Eigentumswohnungen, meint Jokl. Hier meldet sich Berlin eher vom unteren Ende der Tabelle zu Wort: Die Berliner Durchschnitts-"ETW" kommt auf 114 800 Euro - 6,8 Prozent weniger als der Schnitt von 2005. Auch beim Etageneigentum liege Hamburg unverändert vorn mit 181 400 Euro pro Wohnung (minus 3,4 Prozent). "Immerhin sind die Eigentumswohnungspreise in Berlin 2005 mit plus 8,4 Prozent deutlich gestiegen", deutet Jokl auf die Langzeitperspektive.

Weder die 2005er noch die 2006er Zahl sagt Insidern etwas. Laut Andreas Habath, dem stellvertretenden Wertermittlungsausschuss-Vorsitzenden beim Maklerverband IVD Berlin-Brandenburg, sind sowohl bei Eigentumswohnungen als auch bei Eigenheimen die Berliner Preise "auf dem Teppich" geblieben. Da es manchmal sogar in sehr guten Lagen Preisrückgänge gegeben habe, sei bei der Preisentwicklung derzeit "noch kein Grund für Euphorie".
Wenn heute verhandelt werde, dann eher nach unten. Dabei sei besonders bei Renditeimmobilien (vermietete Eigentumswohnungen und Mietshäuser) zu beobachten, dass viele Verkäufer - motiviert durch Wohnungspaketverkäufe - heute mit (viel zu) hohen Verkaufsforderungen an den Markt gingen.

Habath sieht Häuser und Wohnungen weniger als Fall für die Statistik, sondern eher als Anlass für eine jeweils individuelle Betrachtung. Besonders gute Verkaufschancen und bessere Preise erwartet er derzeit im hochwertigen Bereich. Häuser ab 500 000 Euro und Eigentumswohnungen mit Quadratmeterpreisen von mehr als 2500 Euro seien gefragt - wer sich für solche Luxusimmobilien interessiere, verhandle oft weniger lange um den letzten Euro. Aber auch in diesem Bereich sieht Habath kein Plus von 8,6 Prozent, wie das ifs es meldet.
Auch die Landesbausparkassen (LBS) kommen zu einem anderen Ergebnis als das ifs. Die LBS Berlin-Hannover sieht "in den meisten Berliner Bezirken" im Vergleich zum Vorjahresquartal deutlich günstigere Immobilienwerte: Die durchschnittlichen Hausangebotspreise sieht diese LBS nur in der Spanne zwischen 180 000 und 225 000 Euro. Mit drei Ausnahmen: In Reinickendorf, Steglitz-Zehlendorf und Tempelhof-Schöneberg werden deutlich höhere Preise aufgerufen.

Bundesweit übrigens zeigt die ifs-Untersuchung, dass Einfamilienhäuser in fast allen Bundesländern 2006 teurer geworden seien. In Westdeutschland um 1,2 Prozent auf 173 100 Euro, in Ostdeutschland um 1,4 Prozent auf 100 100 Euro. Eigentumswohnungen fielen im Westen um 0,6 Prozent auf 123 600 Euro und im Osten um 5,4 Prozent auf 99 000 Euro zurück. Durch den hohen Anteil von Berlin am ostdeutschen Markt mit rund 48 Prozent des Umsatzvolumens für Eigentumswohnungen sinke der Durchschnittspreis in Ostdeutschland allein dadurch deutlich - ein kleiner Widerspruch zu den von Jokl beklagten geringen Verkaufszahlen auf dem Berliner Markt.

Quelle: Berliner Morgenpost, Artikel

Freitag, 10. August 2007

BERLIN PROPERTY RENTALS STAND AT '85%'

In some parts of Germany, particularly Berlin, the rate of property rental stands at around 85 per cent, it has been claimed.

Paul Collins, property editor for Buy Association, says that such a proportion makes investing in Germany a very attractive option - as the chance of being able to rent out your property "are particularly good".

"In Germany, particularly in some parts of Berlin, the rate of people renting property is about 80-85 per cent. So if you were to buy a property in Germany then the chances of being able to let it out are particularly good," Mr Collins commented."There just isn't the same property culture so if you buy a property somewhere like Germany, there's not so much of a market to sell it on again afterwards."

A recent report revealed that around 70 per cent of properties in the UK are owned with 30 per cent rented out. This proportion stands at 42 per cent owned and 59 per cent rented in Germany, in comparison."It's quite like the UK in the fact that the law is very much weighted in favour of the tenant.

So again that's something to consider if you're thinking about buying a property abroad to then let out," Mr Collins added.

Property Select offers a comprehensive selection of overseas property in Germany, news, members club and reviews of the latest property developments.

Samstag, 14. Juli 2007

Zukunft verkauft für eine Million Euro: Ku’damm-Bühnen

Durch ungeschickte Deals des Landes haben die Ku’damm-Bühnen ihren Bestandsschutz verloren. Für eine Million Euro gab Berlin sein Mitbestimmungsrecht auf.

Das nennt man einen Spitzendeal: Bauunternehmer Rafael Roth kaufte im Jahr 1990 das Grundstück des Ku’damm-Karrees für 30 Millionen DM vom Land. Als er das Ensemble samt Gebäuden zwölf Jahre später weiterveräußerte, strich er 194,2 Millionen Euro ein. Schon 1990 sprachen Experten von einem „Spottpreis“. Auch in den späten neunziger Jahren zeigte der damalige CDU–SPD-Senat beim Karree wenig Verhandlungsgeschick: 1998 verzichtete er auf so genannte Nutzungsverpflichtungen aus dem Deal von 1990. Für die beiden Bühnen im Ku’damm-Karree bedeutete das: Sie verloren de facto ihren politischen Bestandsschutz, denn Berlin gab sein verbrieftes Mitbestimmungsrecht bei Pacht- und Mietverträgen mit den Theatern auf. Dieser Verzicht war relativ billig: Roth zahlte zwei Millionen DM. Jahre später marschierten CDU- und SPD–Politiker in den Protestzügen vorneweg, als es um die Existenz der Theater ging.

Die Vertragsänderung wurde 1998 von der Finanzverwaltung unter SPD-Senatorin Annette Fugmann-Heesing und ihrem Staatssekretär, dem späteren CDU–Finanzsenator Peter Kurth ausgearbeitet. Dieser Vorgang ging auch an die Kulturverwaltung unter CDU-Senator Peter Radunski und Staatssekretär Lutz von Pufendorf. Radunski sagt heute, er könne sich daran nicht mehr erinnern, ob er das Schreiben überhaupt auf seinem Tisch hatte. Fugmann-Heesing möchte sich zu Details nicht äußern, bevor sie in die alten Akten geschaut habe. Sicher ist aber, dass das Parlament nicht informiert wurde. Das musste es auch nicht: 1993 hatte es selber die Kriterien für beschleunigte Verfahren bei Grundstücksgeschäften beschlossen. Darunter fiel diese Vertragsänderung, bei der Berlin auch auf ein Wiederkaufsrecht verzichtete. Generell wurde der Verzicht als „bedenkenlos“ eingestuft – mit einer Ausnahme: „Problematisch erscheint der Verzicht auf das Wiederkaufsrecht aber in Bezug auf die Sicherung von ’Theater am Kurfürstendamm’ und ’Komödie’“, steht in einem internen Verwaltungsschreiben. Doch Folgen hatte das nicht.

„Die gegenwärtig handelnden Personen waren dafür nicht verantwortlich“, sagte SPD-Finanzsenator Thilo Sarrazin auf der Abgeordnetenhaus-Sitzung vor zwei Wochen. Der Regierende Bürgermeister Klaus Wowereit (SPD) leitete 1998 zwar den Unterausschuss Theater. Doch von dem dem Deal erfuhr er offenbar erst bei einem Gespräch mit der Deutsche Bank-Tochter DB Real Estate am 7. Dezember 2005, in dem es um die Zukunft der Theater ging. „Da gab es eine Schocksekunde, als von einem Bankvertreter gesagt wurde, dass das Land seine Sonderrechte verkauft habe“, erzählt ein Gesprächsteilnehmer. Die DB hatte 2002 das Ku’damm-Karree von Rafael Roth gekauft. Dafür erhielt das Land rund drei Millionen Euro, weil Roth es vor der vertraglich festgelegten Frist von 2005 weiterverkauft hatte.

Die DB wollte anfangs beide, später dann nur ein Theater abreißen. Doch damit stieß sie 2005/2006 auf heftigen Protest von Schauspielern, Künstlern – und auch Politikern. Demonstrativ stellte sich im Dezember 2005 der damalige Vizepräsident des Abgeordnetenhauses Christoph Stölzl (CDU) mit Schauspielern und Regisseuren schützend vor die Theater. Am 20. Februar 2006 demonstrierte Wowereit zusammen mit Prominenten für die Erhaltung. „Da wusste er doch schon, dass das Land den Bestandsschutz aufgegeben hatte“, sagt Grünen-Kulturausschussvorsitzende Alice Ströver, die Wowereit „Zynismus und Heuchelei“ vorwirft. Auch CDU-Kulturpolitiker Uwe Lehmann-Brauns unterstellt Wowereit einen „scheinheiligen Umgang“ mit der Zukunft der Theater. Senatssprecher Michael Donnermeyer weist die Kritik zurück: „Wowereit hatte damals die Rechtslage zur Kenntnis genommen, dass es keine juristische Handhabe gibt, auf die Deutsche Bank Druck auszuüben. Er hat trotzdem für die Theater gekämpft. Und das ist nicht zynisch.“

Denkt Theaterdirektor Martin Woelffer an die Solidaritätsbekundungen von Politikern zurück, bekommt er heute ein flaues Gefühl im Bauch. „Da haben sich Leute wie Diepgen oder Wowereit stark gemacht, doch die Suppe war schon gekocht.“ 2006 hat der amerikanische Hedgefonds Fortress von der Deutschen Bank-Tochter das Ku’damm-Karree gekauft. Über Zukunftspläne gibt Fortress keine Auskunft. Nach Tagesspiegel-Informationen läuft derzeit ein Bieterverfahren für den Weiterverkauf.

Auf die beiden Theater lasten Mietschulden von 380 000 Euro, die Monatsmiete beträgt 40 000 Euro. Außer einmaligen Zuwendungen vor Jahren erhalten die von 240 000 Besuchern pro Jahr frequentierten Bühnen keine Subventionen. „Wenigstens könnten die vier Millionen Euro, die das Land erhalten hatte, für die Erhaltung fließen. Und die Häuser müssen unter Denkmalschutz gestellt werden“, fordern Woelffer, die Charlottenburg-Wilmersdorfer Bezirksbürgermeisterin Monika Thiemen (SPD) und andere.Das wiederum lehnt Wowereit mit Verweis auf Schadenersatzforderungen ab. Aber: „Es gibt keinen Schadenersatzanspruch. Denkmalschutz muss ein Eigentümer akzeptieren, auch wenn ein Gebäude nach dem Kauf in die Landesdenkmalliste aufgenommen wird“, sagt Manfred Kühne, Leiter der Obersten Denkmalschutzbehörde. Ein Denkmalstatus sichert allerdings nicht den Fortbestand als Theater. „Über die wirtschaftliche Nutzung ist damit nicht entschieden.“ Das Landesdenkmalamt hat mit Verweis auf spätere bauliche Veränderung abgelehnt, die in den zwanziger Jahren für Max Reinhardt errichteten Theaterräume auf die Denkmalliste zu setzen. Darüber streiten inzwischen die Experten.Ob sich an der Haltung der Denkmalschützer noch etwas ändert? Auf politische Einflussnahmen reagiert das Amt sehr empfindlich. Wolfgang Brauer, Kulturpolitiker der Linken, sagt, Wowereit stehe in der Verpflichtung, den Theatern zu helfen. Jede Landesregierung sei haftbar zu machen für „Vorschäden“ anderer Regierungen wie man am Beispiel der Bankgesellschaft sehe.

quelle: http://www.tagesspiegel.de/berlin/Landespolitik-Ku-damm-Buehnen-Komoedie;art124,2339566

Dienstag, 26. Juni 2007

Boom bei Büros und Lofts in Berlin-Mitte

Berlin - Von der wirtschaftlichen Entwicklung Berlins profitiert auch der Büromarkt der Hauptstadt. Nach Beobachtung von Engel & Völkers Gewerbe Berlin werden wieder mehr Büroflächen nachgefragt; in Teilmärkten von Berlin-Mitte seien derzeit nur noch kleine Büroflächen verfügbar. Generell ist das Interesse an Flächen in Berlin-Mitte und rund um Potsdamer und Leipziger Platz zunehmend. Auch die Nachfrage nach Loftflächen sei erstmals seit Ende des New-Economy-Booms 2001 wieder höher als das Angebot.

Freitag, 15. Juni 2007

Investors in Berlin property blitz

By Yvette Shapiro BBC Northern Ireland business correspondent

On a street in south-west Berlin, a beautiful red-brick building stands out from the fairly bland apartment buildings that surround it.

It's a former children's home, built in 1906 by a German princess. It once resembled a small cathedral, with a pointed roof, but that was blown off in a World War II bombing raid.
Now the building is being transformed into 37 apartments. A two-bedroom flat costs around £130,000. Tenants won't be hard to find for this development.

It's in Steglitz, a solid and affluent suburb of the city, popular with families and professionals.

All of the apartments have been bought by Irish investors from north and south.

"I was intending to launch this project to German buyers," said developer Dr Andreas Pichotta. "But through my contacts with an Irish agent I realised that there's a demand from Irish buyers."

We're buying them for less than they cost to build. It's a buyers' market for the Irish Mike Morris County Mayo estate agent

And that demand is huge. More than ten billion euro was invested by foreign buyers in Berlin property last year.

If you set aside the massive acquisitions being made by major international investment funds, and look at moves made by smaller private investors, then the Irish are reckoned to be among the top three nations investing here.

Irish investors have simply been priced out of the market in the Republic and Northern Ireland. And Berlin has offered them a new home for their money.

The city's status as a major European capital and its impeccable legal system makes it a more attractive destination that some other countries.

But considering that Berlin is currently 66 billion euro in debt, and property prices fell by 30% between 1994 and 2004, is property a good investment here? Many seem to think so.

"It's for exactly those economic reasons that now is the right time to invest here,"says Mike Morris of County Mayo-based agents, Premier Estates Maloney.

I would never recommend that people buy off a brochure Dr Andreas Pichotta Berlin property developer

"We've been operating here for three and half years and in that time we've seen the market stabilise and there are signs that the economy is improving under Chancellor Merkel.

"Prices are currently rock bottom and we're confident of major growth over the next decade. We're taking a long-term view."

Mike Morris flies back and forward from Dublin to Berlin, buying up apartment buildings and commercial property on behalf of Irish investors. Currently, he's handling around 100m euro of investment.

"Some of the buildings we're buying are around ten years old, constructed during the major building boom of the 1990s," he says.

"We're buying them for less than they cost to build. It's a buyers' market for the Irish."

In Berlin, as in Belfast or Dublin, location is the key and local knowledge is vital. The eastern suburb of Friedrichshain is considered to be "up and coming" and the investors are snapping up buildings here. But there are two faces to this district.

One part boasts renovated historic buildings with attractive facades.

Fashionable bars and restaurants have opened, along with organic supermarkets, always a sign that affluent and responsible young professionals have moved in. Two-bedroom flats here cost around £120,000 or more.

Two stops away on the train, and still in Friedrichshain, you'll find huge post-war blocks of flats.

If you want a tenant to leave, you have to give them a year's notice. And even if they default on their rent, you can't throw them out Calvin McBride Banbridge-born Berlin resident

These "projects" consist of state-owned housing stock, now being sold off in a bid to tackle the city's debt.

You can pick up flats here for £40,000-£50,000 (even less in some other districts).

But there are risks. The area has high levels of unemployment and there's a greater likelihood of
tenants with cashflow problems.

"The most important thing for investors is to come to Berlin and find out about the city for themselves," advises Dr Andreas Pichotta. He's surprised that many Irish investors never travel to Berlin before making their purchases.

"There are low-cost flights and the hotels are cheap. You have to come and see the areas, get a feel for the city and decide if you want to invest and, most importantly, where you want to invest. I would never recommend that people buy off a brochure."

His advice is echoed by Berlin resident Calvin McBride. The Banbridge-born theatre director and playwright has lived here for ten years. He acts as a private tour guide, often for groups of investors from the US, Britain and Ireland.

"Researching the area you want to invest in is extremely important," he says. "Somewhere like Friedrichshain is becoming very trendy and will be expensive in ten years time, but you have to be careful where you buy.

"And you must research your tenants very thoroughly. Tenants have very strong rights in Berlin. If you want a tenant to leave, you have to give them a year's notice. And even if they default on their rent, you can't throw them out."

So, if property such a good buy in Berlin, why aren't the local residents doing it themselves? Home ownership levels here are the lowest in Germany, at just 10%.

Achim Sander is a 40-year-old recruitment consultant, running his own business. He lives in the western suburb of Charlottenburg, in a rented apartment built in the 1930.

"I love my apartment, but I don't really see the point of buying," he says. "Berlin is known as the 'city of singles', and I am one of them. I have no children, and even if I did, they might move away and would not want or need a house from me.

"Also, we Berliners like to travel - Germans are the world champions in this regard - and we spend our money on cars. There are other things in live apart from property."

Achim also points to history, explaining that many Berliners are reluctant to put down deep roots in property because of the city's turbulent past, with so many people uprooted through two world wars and the division of the city in 1961.

"These attitudes may change in time, of course," says Achim.

"But I'm in no hurry to buy a flat, I can't see any sign yet that property prices are rising. If that happens, maybe I'll think again."

source: http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/6756703.stm

Berlin Property: A Genuine Bargain?

As property prices in London, Paris and quite a few other destinations on the Continent (with the possible exception of the Spanish Costas) continue to motor ahead, what are the prospects for the German city of Berlin? A big investment theme going around the City presently highlights the seemingly vast disparity in property prices between Berlin and other major European capitals. For example, in the exclusive Charlottenburg area of west Berlin a square metre of residential property costs around 1,800 (1,220). This is approximately one ninth of the price of the equivalent size in west London. Property prices are significantly below the level of 1990, the first post-unification year. A crude conclusion is that either London is absurd, or Berlin is absurd. The truth is probably somewhere in the middle...

As property prices in London, Paris and quite a few other destinations on the Continent (with the possible exception of the Spanish Costas) continue to motor ahead, what are the prospects for the German city of Berlin? A big investment theme going around the City presently highlights the seemingly vast disparity in property prices between Berlin and other major European capitals.

For example, in the exclusive Charlottenburg area of west Berlin a square metre of residential property costs around €1,800 (£1,220). This is approximately one ninth of the price of the equivalent size in west London. Property prices are significantly below the level of 1990, the first post-unification year. A crude conclusion is that either London is absurd, or Berlin is absurd. The truth is probably somewhere in the middle. There are important reasons why Berlin is at this price level. Even cities in the former Warsaw Pact countries; Prague, Budapest, Talinn are more expensive. There are a myriad of issues in Berlin, some of which might be off- putting. But Berlin is worth investigating if, as the marketing suggests, the weaknesses are all in the price.

The capital of former East Germany is defined by its unique history that still touches virtually every aspect of the daily life. Almost 18 years after the fall of the Berlin Wall (November 1989) Berlin is the German capital and a major cultural centre/ tourist destination. The relocation of the German government from Bonn is about half way complete, with some major ministries and civil service still to move. There is a push to attract new biotechnology/IT and media companies and new investments such as a big new international airport. In terms of its shortcomings through, Berlin is not yet in the same league as London or Paris, and might not be for years.

Berlin has not yet carved out an area of specific expertise the way capital cities these days need to, in order to sustain a high earning local population who will demand higher quality goods and services and support investments in new infrastructure. “A house divided against itself cannot stand” said President Abraham Lincoln in 1858. The same could be said of Berlin. The legacy of its history led to two major city centres one in Frederichstrasse the other in Alexanderstrasse, two smallish airports, two lots of City council and civil service, two of everything.

Berlin seems more American than European, plenty of big non- descript buildings, which resemble more a Los Angeles type disorganised sprawl than a strict Parisian grid system. Any comparison though is unfair to Berlin if the observer does not recognise the fact that Berlin was totally flattened in 1945 and has done remarkably well to rise from the ashes. Post re-unification, Berlin worked hard to end the old divisions.

The re-building boom in the former East (1990- 1994) was premised on a speculative bubble in property in the 1990-1993 period and a big improvement in unemployment. At the time expectations were high, investment horizons were short. The office market which in 1993 had near zero vacancy and prices of €50 per sq metre collapsed. In 2005 office vacancies stood at 10% with prices just over €20 per sq metre. The ending of accelerated depreciation, tax breaks and state subsidies caused the closure and relocation of a number of mid- sized businesses in the mid Nineties.

According to a report by Deutsche Bank, in 2005 Berlin’s per capita GDP was just €21,000 in 2004, around 20% lower than other former West German cities and below the level of 1991. The city has seen a stagnant population of 3.4m and has lost families to leafier suburbs in Brandenburg. Berlin has attracted 65,000 people from elsewhere in Germany and 155,000 from abroad but there has been no net population growth. One major problem is unemployment, which stood at 20% in January 2005 up from 13% in January 1995. During the period 1996-2003 the manufacturing sector shed around one third of its staff.

The City of Berlin is in debt to the tune of €56bn; a more than fivefold increase since 1991. Around 21% of Berlin’s income goes on interest and capital repayments. This scenario resembles a mid-1970s New York situation. The Senate Department in November 2002 claimed the city’s state was “extremely distressed” ie Berlin would require transfers from the federal government. It is not obvious how Berlin intends to extricate itself from this mess, there are very few assets it could sell and it is running into the problems of an ageing population. According to the State Statistical Office the number of households in Berlin is expected to rise to around 1.95m by 2050 but over 38% of households will be over the age of 61 by that time. At present there are around 1.85m households, 20% of whom contain over 65s.

Berlin needs to attract new businesses but also needs to increase taxation across the board. Increases in business taxes, property taxes and sales taxes are likely by 2010. On the plus side, there has been a relocation of media/films, IT and communications as well as biotechnology. Recently Universal Music and MTV Central Europe located to Berlin. To some extent growth in media & IT investment in Berlin has been curtailed by the post “dotcom era” valuation collapse, which saw new investment by these companies cut back heavily.

But Berlin has found around 160 biotech companies with four biotech business parks located in around 70,000 sq metres of city space. Berlin’s BioTOP Action Centre is attempting to create conditions for a centre of excellence in biotechnology. So far sufficient numbers of small biotech companies have located to Berlin to call this move a success, but critics point to the sustainability of most of these new enterprises. Another positive is tourism. Berlin compares well as an inexpensive short break destination with plenty of good restaurants, proximity to central Europe, loads of historical buildings.

The new Berlin Brandenburg airport at Schonefeld, currently under construction, will be a new hub that could attract around 20m passengers per annum. This will primarily take business away from the two existing airports, Tegel and Templehof who together handle around 15m passengers. The new international airport will help ease transport links and raise Berlin’s profile.

It follows that Berlin is cheap for good reasons. It might present a reasonable risk now at these low prices, but anyone investing needs to do so with a view to a ten year investment. There are also certain issues regarding Berlin as a property investment. Berlin has plenty of property to choose from, notwithstanding recent enthusiastic and optimistic buying from the City, the Russians etc. Residential prices were up around 6% in 2006 and a similar rise is possible in 2007.

Buyers face a 4.5% flat stamp duty charge, legal fees of between 1.5% and 2% depending on the complexity of the transaction, and negotiable agents fees of around 6%+VAT so 7.14% net. In Germany, buyers pay estate agents commission which is then shared with the seller and other agents if the property is sold on a joint agency basis. Therefore buyers are facing a big 13.6% transaction charge on the asking price. Once purchased, capital gains taxes are levied if the property is sold within ten years. The broad effect of this measure would be to strongly deter speculators but arguably benefit long term investors, if the property tax carrot remains in place. Obtaining a mortgage in Berlin is procedurally cumbersome and takes time. Banks generally offer mortgages for a maximum of 50%-60% on 80% of the valuation.

Hence a property costing €100,000 could obtain mortgage finance worth €40,000-€48,000. In this scenario the buyers’ deposits represents the balance, 52% to 60% of the property value plus transaction costs. This might explain why only 11% of Berliners are owner-occupiers. A London based investor in a rush, would be better off securing finance in London. But this means borrowing in sterling and investing in Euros hence taking a net currency risk. German law is favourable to the tenant, in almost every circumstance. If the boiler breaks down, or there are repairs to do, or other problems, then those expenses plus service charges are on the landlord’s account.

It might take a year to evict a non-paying tenant. However non payment is relatively rare in certain areas. The main problem is rent controls, which apply all over Berlin. The rent table fixes the price of rent per square metre per month for an unfurnished property. It is rare for a tenant to pay a premium to the rent table. If an investor purchases a property with a sitting tenant, then he is bound by the terms of that tenancy. Generally the landlord can raise rents by a maximum of 20% every three years, but a good tenant may be able to negotiate this down. The best scenario, ie the purchase of a top specification empty property will secure a rent that equates to a yield of between 4-5%.

Then the investor has to wait three years for the 20% uplift at the rent review. It is worth specifying the length of lease being offered to an incoming tenant otherwise the tenancy is deemed to be of indefinite length. A resident tenant has the right of first refusal in the event the property is up for sale. The question of where in Berlin is largely down to individual taste. The Friedrichshain area is on a 120 hectare plot near the docks that will see multi-billion euro investment to create the “Mediaspree park district”. This area is a bit like the 1980s Docklands, where 60 sq metre flats can be bought for around €90,000. The Charlottenburg area is the well established Kensington sort of area where prices are around €250,000 for a family flat. Steglitz in Berlin’s leafy suburbs, a good location near to the new airport also, has family flats of 100 square metres at around €170,000.

Then there is Prenzlauerburg, the fashionable Bohemian “arty” area in former East Berlin, where 60sq metre flats are around €100,000. Recently Berlin has been marketed to investors in London by corporate agents, who are selling managed apartment blocks with ten year leases. The investor is persuaded after a weekend break in Berlin, paid for by the agent, to buy a flat in a certain block. The investor gets a net rent but in many cases is buying from the owner of the apartment block at hefty 20%-30% premiums to the prices that they would pay if they were buying through a local agent, hence achieving a profitable exit for purchasers of the apartment block.

The properties generally are not in good areas and have sitting tenants. We would steer clear of taking this approach and would suggest interested investors take a long weekend and view a good selection of properties. To sum up, Berlin certainly offers value for money. The city has hurdles to jump, and it could be years before an Anglo-Saxon style owner culture emerges. Right now Berlin is the land of happy renters and that culture will need to change for serious property appreciation to take place.


Dienstag, 22. Mai 2007

German Investor Sentiment rises in May

Sentiment among German investors about the outlook for Europe's largest economy improved in May, the latest survey by the ZEW economic research institute showed today.

The think tank said its economic sentiment indicator, based on a survey of 301 analysts and institutional investors, rose to 24.0 this month from 16.5 in April.

'The economic upswing in Germany seems to be hardly influenced by the VAT increase and the economic downturn in the US,' ZEW President Wolfgang Franz said in a statement, referring to a three-point VAT rise earlier this year.

'Increasing employment rates in all economic sectors and a good investment climate put the upswing on a sustainable growth path,' he added.

A separate gauge of current conditions for Germany advanced to 88 from 76.9 in April. The consensus forecast was for a reading of 79.

A measure of expectations for the euro region rose to 22.3 in May from 10.7 the previous month, the ZEW said.

Story from RTÉ Business : http://www.rte.ie/business/2007/0522/Germany.html

links: Centre for European Economic Research

Dienstag, 15. Mai 2007

Germany shows strong growth - Eurozone beats forecasts

The eurozone saw solid growth in the first three months of 2007, beating expectations, official figures show.

The 13-country area's economy grew 3.1% year-on-year - below the 3.3% growth seen in the previous quarter, but beating the 2.9% forecast.

The data fuels analysts' view that the area's interest rates are set to rise.

Last week, the European Central Bank (ECB) kept rates at 3.75%, but the bank's head called for "strong vigilance" to counter price risks.

The expression by Jean-Claude Trichet is viewed as a way of implying that the benchmark rate will be lifted to 4% at the ECB's next meeting in June.

"Stronger-than-expected eurozone GDP growth should help provide the extra leverage to the ECB for higher rates in the next few months," said David Brown of Bear Stearns.

While annual growth was 3.1%, growth on a quarter-by-quarter basis hit 0.6%, beating the 0.5% forecast.

"Today's GDP [gross domestic product] report strengthens our belief that the eurozone economy is on a sustained growth trajectory," said Martin van Vliet, an economist at ING.
Less damage

A major factor behind the growth was strength in Germany -
the region's largest economy.

Separate data from Germany's government showed that national growth for the quarter - while less than the previous period - beat expectations, hitting 0.5%.

Although German consumer spending was dented by higher value-added tax (VAT), which rose from 16% to 19% in January, this was countered by strong investment.

Economists greeted the German figures - which showed a 3.3% rise year-on-year - positively.
Bear Stearns' David Brown said: "With the impact of Germany's VAT hike causing less damage to German growth in the first quarter, it has helped solidify euro zone growth... over the last 12 months."

Sebastian Wanke of Dekabank said: "Although the basic story of private consumption and trade as brakes on growth... appears to be valid, it is happening at a higher level than expected."
Eurozone forecasts

Meanwhile, official data from France showed its economy grew by 0.5% in the quarter - the same as the previous three-month period.

Overall, the 27-member European Union saw growth reach 3.2% year-on-year, exceeding the 2.1% seen in the US for the same period.

Separately, the European Commission forecast strong growth over the next six months in the eurozone, before slowing in the final quarter.

Donnerstag, 3. Mai 2007

Berlin Property: An Investment Market

It is a fact that Berlin in Germany has undervalued real estate and with shrewd multi national companies already investing in the city its only a matter of time that others will follow. It is now time for the smaller overseas property investor to examine Berlin's housing market. Research reveals compelling evidence that Berlins housing market is the next big thing in European city investment.

Berlin real estate offers overseas property investors a great opportunity to benefit from low prices with great potential for capital gains. Berlin's property prices are still low and represent the lowest prices in any European City. Recently Prudential Real Estate Investors announced that it had acquired the famous Ewerk office situated in the heart of Berlin. The Ewerk, a former transformer station built in 1928, was renovated during 2004 and 2005.

So why is Berlins housing market full of cheap property? A little research into Berlins City history reveals why Berlins property prices dropped and never caught up with other European cities.

The opening of the Berlin Wall (1989) and the reunification of Germany (1990) resulted in a wave of optimism. The expectations for Europe's largest economy and it's newly created capital city Berlin were high. The pent-up demand particularly from the East Berliners was immense. The conclusion at the time was that the city required a massive investment and construction programme in all sectors.

The Berlin construction boom of the early nineties coincided with both the reduction in residents and more importantly their purchasing power. This coincided with an increase in unemployment levels. The net result was a fall in the price of property and rental values. Berlin witnessed an increase in the availability of office and residential space without an appropriate increase in demand.

Between 1994 and 2004 new property prices fell in Berlin by 30% and rents by 15%.The disposal of large property portfolios by public authorities further undermined price levels.

Property prices in most European countries significantly increased while those in Berlin stagnated or fell. Berlin now represents the most competitively priced property in Europe.
The people of Berlin like to rent property with only 12% of Berliners owning their properties compared with over 20% in Hanover, Hamburg, Munich and Stuttgart. This lack of demand has kept prices low and provides buyers with ample supply of Berlin tenants.

Tourism has increased by 16% in 2004 alone. In excess of 2,000 four and five star hotel rooms have been built in the last 3 years including Ritz-Carlton and Radisson. There were 14 million overnight stays in 2005 compared to 11.2 million in 2003. British tourism increased by 22% in 2006 alone.

The indications are that Berlin is set to boom and the time appears to be now for overseas property investors to head for Berlin.

Nicholas Marr is the CEO behind overseas property website at http://www.homesgofast.com .
His position means that he is contact with hundreds of real estate agents and developers world wide.
This has enabled him to gain a unique insight into international real estate markets from those who work in them at first hand.http://www.homesgofast.com/home/Germany/

Donnerstag, 19. April 2007

Berlin and Munich - top for investment!

Britons considering Germany as a Property Investment location should put the cities of Berlin and Munich top of their list, an Overseas Property expert said today.

According to Amberlamb, the property market in both cities has been static for the past five years and as such offers investors an ideal opportunity to make real gains in the long-term.

Spokesperon Rhiannon Williamson said both of the cities offer potential investors everything "from the lifestyle to location" as well as employment opportunities.
"Germany is quite simpley a great place to invest for those seeking rental income. This is simple because Germans like to rent houses. There is most certainly not the same culture of home ownership in Germany as there is in the UK or Ireland for example. Both Berlin and Munich are in demand with tenants seeking a broad range of rental stock and both have an abundance of property for sale. They also have a wide range of property types available for sale, from city centre apartments to spacious houses in the suburbs."
She added that Frankfurt in the west of the country was also experiencing growth, due to its `excellent infrastructure.´.

Donnerstag, 29. März 2007

Buying up Berlin - the sale's on now

Investing in Germany Want a morgue, a TV tower, or Goebbels' rundown wartime lakeside love-nest? Derek Scally on why Berlin is auctioning off, well, everything

Fancy living in the former lakeside love-nest of Nazi propaganda minister Joseph Goebbels?
Or how about owning Berlin's television tower, the city's most recognisable landmark after the Brandenburg Gate?

It's sale of the century in the German capital. The invasion of foreign investors into the property market has boosted confidence here to the point where even the city government is opening its property portfolio, filled with long-hidden jewels and one-of-a-kind development opportunities.
All are sold at public auction, without advance guide prices.

"The Irish are hugely interested in everything we have and our property portfolio is extremely varied," says Anette Mischler of the Berlin Real Estate Fund (Liegenschaftsfonds, LFB), a state body set up in 2001 to sell off property owned by the city state of Berlin.

"Until our body was created, an unlucky would-be investor had to talk to up to 26 different government bodies. Now there is just one point of contact."

Nearly 18 years after unification, Berlin remains a one-of-a-kind property market. Unlike other cities, like Munich where the state owns less than 5 per cent of city property, over half of property in the capital belongs to the Berlin state government, the senate.

This legacy of East German state ownership is a costly burden in a city with debts of over €40 billion and so the government has consolidated ownership of all its property into the LFB. Its mission: to auction it all off.

"We've got everything: empty hospitals, industrial buildings, disused wartime bunkers. We sold a morgue the other day," says Ms Mischler.

Until now, all that was lacking in this property pick n' mix were willing, solvent buyers.
But Germany's economic recovery in the last 12 months has taken care of that. Now foreign investors are arriving in the capital in huge numbers, attracted by the quality, location and value of the properties up for grabs.

Perhaps the most curious "fixer-upper" on the LFB books is the "Waldhof" villa 40kms north of Berlin, dubbed "Goebbels' love-nest".

The Nazi propaganda minister used the villa, completed in 1939, to entertain the German film industry's leading ladies until the war spoiled his fun and his family was forced to move here from Berlin in 1943. Two years later the Goebbels family left the villa for their notorious swansong in Hitler's bunker.

The 100sq m (1,076sq ft) villa, with a livingroom overlooking the Bogensee lake, was remodelled after the war into a youth hostel for scouts and regularly housed GDR bigwigs, including the later Politburo chief Erich Honecker.

Now empty and rather shabby, the villa will need a good makeover from its new owners. Thrown in with the villa is 15 hectares (37 acres) of forest grounds.

Back in central Berlin, and just about to come on the market, is the Alte Manze (Old Mint) located in the eastern city centre just behind Alexanderplatz and Berlin's landmark "Rotes Rathaus" town hall.

Another landmark building up for auction is the Lapidarium, located directly on the Landwehr Canal near Potsdamer Platz. The building has a varied history - it was Berlin's first pumping station in the 19th century and Andy Warhol held wild parties here in the 1980s. Today the building is home to city statues that are surplus to requirements.

The LFB has no shortage of undeveloped sites of interest to property developers.

Cream of the crop is the Humboldthafen (Humboldt Harbour), opposite Berlin's new main train station and just 200 metres from the Chancellery and the Reichstag.

Investors are being sought for a 110,000sq m (1,184,029sq ft) waterside mixed-use residential and commercial development surrounding the harbour basin and the LFB has just begun to release onto the market the first of nine sites, varying from 3,900-23,000sq m (41,979-247,569sq ft).

"There is no other city in Europe with such huge sites in a central location on the open market, only in Berlin," said Ms Mischler.

Another site about to come on the market is on Hausvogteiplatz, near the foreign ministry and just behind Unter den Linden boulevard. It's expected to be turned into a development of townhouses, similar to another popular development nearing completion on a neighbouring site. Perhaps the LFB's most sought-after sites at the moment are a 24,000sq m (258,333sq ft) area of development property in the embassy district facing the Tiergarten park.

"People are snatching those sites out of our hands," says Ms Mischler.

She warns that much of the agency's high-yield property has already been sold off, making the property on offer more suitable for mid-to-long-term investment.

But the ongoing inventory process of Berlin's state-owned property agency means that the LFB doesn't know what it will have to auction off in the months and years to come, and recommends that potential investors make contact.

Last year the agency sold property worth €280 million and already 2007 looks like it's going to be a record year.

One landmark object not being sold by LFB which has just come on the market is the landmark Television Tower, a Sputnik-like monument to superior Communist engineering built in 1969.
Paddy Power bookmakers is already speculating that Coca Cola will buy the tower, worth an estimated €40 million, from its current owner Deutsche Telekom.

"The television tower is the ideal advertising hoarding for the company," said Paddy Power, "high above the roofs of the city, popular with Berliners and a popular tourist attraction."

But Berlin officials have rejected the idea of using the 368-metre tower for advertising purposes, making it unclear what the new owners are expected to do exactly with their new plaything. But with a fantastic viewing deck, a retro bar and revolving restaurant, anything goes . . .

Werner Jenke

source: http://www.ireland.com/newspaper/property/2007/0329/1175003387366.html

00 49 30 22 33 69 72 werner.jenke@liegenschaftsfonds.deMr Kai Renken
00 49 30 22 33 66 95


Kai.Renken@liegenschaftsfonds.de© 2007 The Irish Times

Dienstag, 20. März 2007

Walls of investment come down in Berlin

While property soars around the world, one country's prices are actually falling. So is this the time to snap up a bargain in Germany? Graham Norwood reports

Professional property investors say that if house prices have already risen in an area, they've missed the boat - and the bargains - and should move on to lower-priced locations. In which case, there must be an awful lot of investors staring at Germany.


At first sight, its feeble housing market performance seems inexplicable. Prices have fallen since 2000, while across the whole of western Europe values have risen by an average 90 per cent and those in Britain by 120 per cent.

Germany still limps along at the bottom of estate agent Knight Frank's Global Price Index, too, the latest results from which are revealed exclusively in The Sunday Telegraph.

Latvia tops the chart, with prices in the capital, Riga, rising by 66·6 per cent in a year. It is followed by Poland - a new entry because reliable figures were not previously available - and Denmark, up 33 per cent and 22 per cent, respectively.

Both are neighbours of Germany, yet there it sits at the bottom of the Global Price Index, with prices actually falling by 3·2 per cent. This is despite it having the EU's biggest economy and largest population, making it appear ripe for canny investors.

Three problems have held Germany back, at least until now. Firstly, supply of homes has far exceeded demand. After reunification between East and West in 1990, there was ferocious new house-building by developers, vying for buyers with hundreds of thousands of unloved Communist flats suddenly on sale.

Secondly, subsidised housing and strict rent controls have made renting much more attractive than buying on the open market. German owner-occupation is only 43 per cent (it is 72 per cent in the UK), while in Berlin it is a mere 12 per cent and in Hamburg 20 per cent.

Thirdly, the cost of buying is high (you pay about 12 per cent of the purchase price in fees) and it's not so easy to get a mortgage in Germany as in most of Europe.

As a result, prices remain low even in cities which have seen modest rises recently. One-bedroom apartments in Berlin, the country's capital and largest urban centre, range from £20,000 to £60,000. Frankfurt, the most commercially successful city in Germany and mainland Europe's finance capital, ranges from £40,000 to £70,000.

High-rolling investors can even buy whole blocks. For £1·2 million, the price of an apartment in prime central London, you can get 28 flats in a 100-year-old block in the Wedding suburb of Berlin, albeit in need of extensive refurbishment.

But there are changes appearing in the market. House-building levels have dropped from western Europe's highest to its lowest in seven years, some rent subsidies are being phased out to encourage more people to buy, and competing mortgage products are trying to woo investment buyers.

"Being at the foot of the table now is exactly why investors should look at Germany," says Knight Frank's head of research, Liam Bailey. "But they must select the right property in the right city. The East is a no-go area because of continuing massive over-supply and poor quality, but some cities in the West are expanding." The most promising investment markets are in Hamburg, Berlin, Dusseldorf, Frankfurt, Stuttgart and Munich.

A few pioneering British investors have already taken the plunge. London civil servant Simon Luker has bought a small Berlin studio apartment in a modernised period block in the suburb of Neukollen for only £21,000.

"I've been looking to invest overseas for some time," he says, "and was surprised to learn German property was considerably lower than even Riga or Prague." Ray Chapman, a business manager from Hastings, and Sue Hart, head of a health treatment centre in Hertfordshire, looked at Eastern Europe but decided against investing because the infrastructure was relatively undeveloped. Instead they bought a £35,000 one-bedroom apartment 15 minutes from Berlin city centre.

"Berlin has a superb infrastructure and is almost tailor-made for buy-to-let," Ray explains. "Our investment is long-term, as German law dictates that any property sold within 10 years attracts 25 per cent capital gains tax. Berlin is an attractive rental market that isn't based on seasons or low-cost airlines getting routed."

Estate agents are now beginning to sell properties to foreigners. "New builds have been decreasing at a record level," says Gregory Lu of Imoinvest, an agency selling property in Berlin and Leipzig. "This means those new schemes that have been available achieve high sales with little or no discount. This has knock-on effects with the refurbishment of old blocks and larger buildings spilt into condos."

But there are still some sceptics. "The idea that the German market is a sleeping giant which will roar into action with a burst of high price inflation remains an elusive dream," writes Professor Michael Ball in his annual European housing survey for the Royal Institution of Chartered Surveyors. He repeats the warning that East Germany has "substantial oversupply contributing to weak prices and rents" but says the West is picking up.

Knight Frank's Liam Bailey maintains that this is exactly the point, however. "Investors should go behind the headline figure and look more closely at the German sub-markets," he says.

"That's where the hot spots are."

source: http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2007/03/20/pgermany120.xml

Donnerstag, 15. März 2007

ORCO Germany erhält Baugenehmigung für FEHRBELLINER in Berlin

eierliche Übergabe durch Berliner Senatorin für Stadtentwicklung
Frau Junge-Reyer auf der MIPIM in Cannes

Die Berliner Senatorin für Stadtentwicklung Frau Junge-Reyer überreicht Rainer Bormann, Vorstandsvorsitzender der ORCO Germany, die Baugenehmigung für FEHRBELLINER in Berlin auf der internationalen Immobilienfachmesse MIPIM in Cannes.


Cannes, 15. März 2007 - „Wir sind stolz, dass mit der Baugenehmigung in dieser Woche alle Weichen für den Baubeginn Ende März gestellt sind und ein sehr ambitioniertes und echtes Wohn-Loft-Living-Projekt im Herzen der Stadt realisiert wird. Bis heute sind bereits 40 Prozent der Fläche reserviert.“ so Rainer Bormann.
Mit der Entwicklung der „FEHRBELLINER“ des Architekten Eike Becker entsteht ein Projekt, in dem die Identität Berlin Mitte, die Ambition individueller Lebensentwürfe und die Perspektive des Standortes aufeinander treffen. Architektonisch zeigt sich das in der
Verschmelzung von Gegensätzen und einer Vielfalt an Produkten. Äußerlich wird ein
Kontrast von Baustilen, Formen und Materialien entstehen. In der neuen Gebäudestruktur gruppieren sich verschiedene Wohnwelten für spezielle Lebensmodelle: Lofts, Flats, Townhouses, Penthouses – jedes mit ganz spezifischen Merkmalen in nach fünf verschiedenen Leitideen entworfenen Ausstattungen. Entstehende Freiräume auf den Dächern, in den Höfen und Gärten werden für individuelle Nutzungen konzipiert und ergänzen die Wohnangebote mit verschiedenen Services und Features. Bereits Anfang der Woche erhielt ORCO Germany – ebenfalls auf der MIPIM in Cannes – die Baugenehmigung für das geplante Sky Office in Düsseldorf.

Weitere Informationen finden Sie unter www.fehrbelliner.de.


ORCO Germany
ORCO Germany ist eine am Open Market der Frankfurter Wertpapierbörse notierte Immobiliengesellschaft. Das
Unternehmen ist seit dem Jahr 2004 in Deutschland tätig und konzentriert sich auf Wohn- und Gewerbeimmobilien
sowie auf Asset Management und Projektentwicklung. Im Bereich Projektentwicklung hat sich das Unternehmen
durch die Akquisition der Viterra Development im Jahr 2006 strategisch verstärkt. Derzeit beschäftigt ORCO in
Deutschland 87 Mitarbeiter.


Orco Property Group
Die Orco Property Group ist mit EUR 1.31 Milliarde (Stand: 31.12.2006) Asset under Management ein führender
Investor, Projektentwickler und Asset- und Fondsmanager im Real Estate- und Hospitality-Markt in Zentraleuropa.
Orco Property Group mit Sitz in Luxemburg ist an den Börsen Euronext and Prague Stock Exchange notiert und
bereits seit 1991 in Zentraleuropa aktiv. Das Beteiligungsportfolio umfasst IPB Real, MaMaison Apartments &
Hotels, Orco Real Estate und andere Gewerbeimmobilien.
Orco Property Group agiert in verschiedenen Ländern, darunter überwiegend in der Tschechischen Republik,
Ungarn, Polen, Russland, Kroatien, der Slowakei und Deutschland und analysiert permanent mögliche
Investments in weiteren Regionen.
Orco Property Group ist zudem Initiator und Manager des Endurance Real Estate Fund, ein in Luxemburg
regulierter so genannter “Closed-End and Umbrella Fund” für Immobilien in Zentral-Europa. Der geschlossene
Immobilienfonds richtet sich an institutionelle Investoren und beläuft sich derzeit auf EUR 141,6 Mio. Asset under
Management und verwaltet Assets in Höhe von EUR 160 Mio. ORCO hat innerhalb dieses Dachfonds einen
zweiten Subfonds mit einem Zielvolumen von 100 Mio. EUR aufgelegt. Das Hauptaugenmerk liegt dabei auf dem
Erwerb, der Entwicklung, dem Management und der Veräußerung von Wohnimmobilien im Mittelklasse- und
Luxussegment in Zentraleuropa, Deutschland, Kroatien und Russland.


AUSSENDER
Marcel Wiskow

Kirchhoff Consult AG
Ahrensburger Weg 2
22359 Hamburg

T +49 40 60 91 86 55
F +49 40 60 91 86 60
marcel.wiskow@kirchhoff.de
www.kirchhoff.de

quelle: http://www.pressemeldungen.at/bauenwohnen/d9f65e9ad7125f20f.html

Freitag, 12. Januar 2007

Lured by Property Bargains, Foreign Investors Flock to Berlin.

Drawn by some of the lowest property prices in Europe and signs of an economic revival in Germany, foreign investors are rushing to Berlin to get a piece of the hot real estate market.

Christine Munch, a 31-year-old graphic designer from Norway, last year bought an apartment in Berlin's Mitte neighbourhood for 157,000 euros ($203,000), or less than at least three times the amount she would have paid for a comparable place in Oslo.

"Owning an apartment that's really cheap in the middle of such a vibrant and culturally rich city is a dream come true," said Munch of her 100-square-meter (1,080-square-feet) home located on the 19th floor of a prefabricated high-rise close to where the Berlin Wall once stood.

The apartment, which offers sweeping views of the city, is five minutes away from a subway station in the city's centre.

Flood of foreign homebuyers

Notwithstanding Berlin's sluggish economy and high jobless rate, Munch is among a wave of foreign buyers lured to the German capital in recent years by some of the lowest property prices in Europe. Most of the investors are from Britain, Ireland and the US, followed by Spain, Norway, Sweden and France.

Jürgen Michael Schick, vice president of the IVD Real Estate Association of Germany said that over 10 billion euros were spent on Berlin properties in 2006. "Foreign investors accounted for more than 66 percent of those transactions," he said.

The surge in interest is fuelled by coverage in the international media with British dailies such as The Observer and The Daily Telegraph labelling Berlin a good place to buy a second home and the property pages of newspapers in France, Spain and Ireland routinely advertising real estate in the German capital.

"Cheapest metropolis in Europe"

"Berlin is the cheapest metropolis in Europe. Real estate values are significantly lower than those in London, New York or even Prague and Moscow," said Philipp C. Tabert, head of Berlin-based real estate consultancy Winters & Hirsch, whose firm generated annual revenue of 220 million euros last year. Almost 95 percent of Tabert's clients are from Britain, Ireland, America, Spain, Italy and France.

The dramatically low-cost nature of Berlin's property market is obvious when compared with other European cities.

According to statistics, real estate prices for Berlin dropped every year from 1996 to 2004. For that same period, real estate values in London climbed 80 percent. One estimate said a square meter for a renovated apartment in a prime area in Berlin today costs around 1,500 euros, while in London it's no less than 15,000 euros.

It's a difference that's hard to ignore.

Gary Savage, a teacher from London, said his 87-square-meter apartment in the heart of the coveted Mitte district -- for which he shelled out 145,000 euros -- was a real bargain.
"You couldn't even buy a garage or a shed in London today for that price," he said.
Eastern neighborhoods still popular.

Foreign homebuyers are attracted to the neighbourhoods of Friedrichshain, Prenzlauer Berg and Mitte in former Communist-ruled East Berlin -- famed for their fashionable cafes, lively clubs and central locations. But investors are also increasingly shopping around in districts in western Berlin such as Zehlendorf and Steglitz and other outlying neighbourhoods, experts say.
In recent years, not only private homebuyershave been flocking to Berlin but also increasingly private equity funds, such as New York-based Cerberus Capital Management and Goldman Sachs Group's Whitehall investment fund. In 2004, the two together bought 65,700 units of Berlin's public housing for 2.1 billion euros.

In 2006, other big investors included Swedish insurance company Akelius and GE Real Estate.
"Today foreign investors aren't just looking for high yields and quick profits but are more interested in sustainability with a long-term commitment of 10 to 15 years," Schick said, adding that Berlin's home-ownership rate of just 13 percent also meant that the market still had potential to grow.

Experts point out that foreign investors are also emboldened by signs of an overall economic revival in Germany as rising consumer confidence drives demand for housing. The country's economy is expected to increase by 2.5 percent this year, unemployment fell to the lowest in four years in November and business confidence surged to a 15-month high.

Most agree that Berlin's present property boom is here to stay as opposed to the upswing of the 1990s, which was marked by a spectacular crash when a state-owned bank had to be bailed out by the city as a result of failed real-estate investments.

"In the long-term, Berlin property investments will turn out to be very positive," Schick said.

"We're expecting them to reach a new record in 2007."

by Sonia Phalnikar

Mittwoch, 3. Januar 2007

Letter from Berlin: Boom Time for Revamped Economy

The German economy, written off in the last five years as fat, lazy and condemned to long-term decline, is bouncing back thanks to corporate cost-cutting, surging demand for its cars and machinery and the reforms of former Chancellor Gerhard Schröder.

By David Crossland in Berlin

DPA

Shoppers crowded into the new Karstadt department store in Leipzig ahead of Christmas. Chancellor Angela Merkel, who declared in June that Germany was a "basket case" in need of a radical restructuring, must be eating her words. Seven months on, the world's third-largest economy behind the United States and Japan is powering ahead as fast-growing economies in eastern Europe and Asia clamour for just the kind of goods Germany specializes in -- autos, industrial equipment and chemicals.

The "sick man of Europe" tag that stuck to Germany for half a decade after 2000 has disappeared. Germany is now regarded as the most competitive economy in the 13-nation euro single currency area, according to a survey of 1,175 European top executives published by business daily Handelsblatt this week.

Its perceived competitiveness even matches that of the United Kingdom, long cited as a model for Europe after the radical privatization and welfare cutbacks imposed by Margaret Thatcher in the 1980s.

The speed of the recovery has surprised the government which in the spring was predicting growth of 1.6 percent this year -- it has since revised that up to 2.5 percent. Until a few months ago, some economists were warning that the €25 billion in tax hikes coming into force in 2007 could choke off the upturn.

They too have changed their minds. After an expected dip to below 2 percent in 2007, growth is widely expected to pick up again in 2008.

The upturn was evident during the buoyant Christmas shopping season which delighted retailers, even though part of their higher sales was attributed to advance purchases to avoid the three-point hike in the VAT (sales tax) to 19 percent at the start of 2007.

A stream of good news has washed away the gloom and self-doubt which prompted former German President Johannes Rau to declare in 2004 that the country was in a state of "collective depression."

Southern German toy manufacturer Playmobil ran extra shifts but still couldn't keep up with Christmas demand for its biggest seller, a €120 hospital. December saw MTU Aero Engines win a €110 million contract to supply engines to China. And Siemens together with IBM clinched a €7.1 billion deal to modernize the entire IT network of the German army.

Figures out on Wednesday showed that unemployment, Germany's biggest headache for over a decade, fell by a seasonally adjusted 108,000 in December, the ninth consecutive monthly decline, to 4.115 million or 9.8 percent of the workforce.

"This appears to be a sustained upturn," Gernot Nerb, chief economist at the Munich-based Ifo economic research institute, told SPIEGEL ONLINE. "Germany has become more competitive in recent years, unit labor costs have fallen here while they've increased in rival economies such as Italy."

"It's primarily been due to painful restructuring by companies, but the government has done things too," said Nerb. Top companies such as industrial group Siemens or Volkswagen have been outsourcing production to lower-cost countries in eastern Europe and have pushed through cost-cutting deals with their employees in Germany. In many cases workers have been agreeing to work longer hours for lower pay to avoid threatened plant closures.

Ifo expects GDP growth to slow to 1.9 percent in 2007 from a projected 2.5 percent in 2006, and sees it accelerating back to 2.3 percent in 2008. The DIW economic institute projects 1.7 percent growth in 2007.


Jobless benefit cuts and tougher rules for the long-term unemployed implemented in 2003 and 2004 proved so unpopular that they effectively brought down former Chancellor Gerhard Schröder, defeated in a 2005 general election he called early after a string of regional election routs.

But to Merkel's delight, they now seem to be having an effect. "People are under much more pressure to find work now," said Lothar Hessler, an economist at HSBC Trinkaus. "Germany makes just the kind of investment goods that are in strong demand in growth markets like Asia," said Hessler, who said he saw no major risks to the economy in 2007.

Even the slowdown in the US economy, which sucks in 20 percent of German auto exports, is expected to be so soft and temporary that it won't do huge harm, say economists.

With everything looking hunky dory, powerful voices in the government seem tempted to spare the country further reforms. Kurt Beck, the leader of the center-left Social Democrat party which shares power with Merkel's conservatives, said the government's current program of measures had taken Germans to "the limit of what they can take."

While Merkel responded by stressing that her government would push forward with further reforms, Beck's comments were widely interpreted as a signal that the grand coalition isn't going to venture far beyond the health service cutbacks, tax and labor market reforms it has decided over the last year.


The problem is that there's so much still to do. Germany's rate of long-term unemployed people at 5 percent in 2005 was among the highest in the European Union. Few of them are qualified for the thousands of vacancies for skilled jobs in top industries. Industrial firms reported in December that they had vacancies for more than 20,000 engineers.

Meanwhile, eastern Germany continues to fall further behind the far more prosperous west. And red tape still represents a major obstacle to business start-ups. Examples of bureaucratic folly abound, such as the building firm that was almost shut down because its ceiling was two centimeters too low, or the photographer who was told to install a window in his darkroom so that his staff had access to natural light.

And despite the recovery, Germany can't yet be described as an engine of growth for the continent, said Ifo's Nerb. "Germany remains very strongly reliant on its exports. It won't be a real engine of growth until its domestic demand really takes off, which would suck in imports from elsewhere in Europe."

Dienstag, 2. Januar 2007

Investors Bet on German Property Boom

Investment in German commercial property is at a record high, boosted by the flood of foreign investors who are betting that the recovery in Europe's largest economy will at last trigger rising demand for offices and shops.

The volume of German commercial property transactions more than doubled to € 47,45bn ($59.8bn) last year from 2005, according to figures by Jones Lang Lasalle, the property consultant and investor. Activity is at an all-time high and foreign investors account for 79 per cent of the deal volume.

"We have seen extreme inflows of money in the German property market, mostly from the US," said Wolfhard Leichnitz, chief executive of IVG Immobilien.

"The big question now is when we will see fundamentals catching up with expectations," said Christian Ulbrich, managing director at Jones Lang LaSalle in Frankfurt. Mr Ulbrich expects the combination of economic growth and lower supply of offices to drive rents up. JLL forecasts average rent in the big five cities to rise between 1.8 and 4.6 per cent a year until 2009.

The introduction of real estate investment trusts in Germany this year is expected to boost investor interest in property assets further. Mr Leichnitz said IVG was considering whether to turn the company into a Reit.

source: FINANCIAL TIMES