Montag, 28. Januar 2008

Berlin Property a Safe Harbour in Financial Storm

With the recent economic woes keeping many people awake at night, where can investors find a low-risk overseas investment property? In the midst of the financial storm, Berlin is a safe harbour. David Stanley Redfern Limited, the overseas investment property specialists, are now helping investors take advantage of these favourable conditions in the Berlin housing market.

In contrast to other prosperous German cities, low rent and abundant supply of space are drawing companies to Berlin. At the same time urban regeneration efforts have led many neighbourhoods in the former East Berlin to become increasingly fashionable. Jam-packed with cafes, boutiques and a thriving art scene, Mitte, Prenzlauer Berg, Kreuzberg, and Friedrichshain are now among Berlin's most sought after addresses for young professionals. With over 80 percent of Berlin residents renting, demand for these areas is likely to remain strong, particularly for the lower priced segment of the market.

At the same time, changes in the law have allowed landlords in the city to increase rents up to 20 percent in a three year period. Publicly owned housing stock is increasingly being bought by prominent private investors, including Goldman Sach's and Morgan Stanley's property funds, which is beginning to drive prices up. Savvy investors who get into the market while prices are still low can expect a healthy return on their investment.

To help investors take advantage of the favourable market conditions, David Stanley Redfern is offering a one-bedroom property in trendy Friedrichshain. Built in 1910 and refurbished in 2002, the building boasts historic charm combined with all the modern conveniences. Facing a courtyard, with laminate floors, spacious rooms and modern bathroom fixtures, the 57 square meter apartment is not only attractive but also a sound investment.

Already tenanted with scheduled yearly rent increases, David Stanley Redfern projects a healthy rental yield between 4.2% and 5.8% and expected capital appreciation of 10% as the neighbourhood continues to gentrify.

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