Montag, 23. Juni 2008

Berlin Investment Property

Investment Property in Berlin is becoming more and more sought after, as more and more people hear about the returns to be made on Berlin Property Investment.

The economy in Germany grew by 2.5% in 2006, with confidence amongst business leaders at it's highest point in 15 years, Germany's economy is finally on the edge of recovery. Along with a strong export industry, these factors point to an increase in house prices, making now an ideal time to invest.

There has been a high increase in the number of investors buying Berlin investment property due to the long period of economic stagnation, particularly in the Eastern part of the country, such as Berlin, keeping property prices low. An increase in the amount of investment in the city has started, and will soon become an investment boom. Now is the time to consider investing.

The German government is due to liberalise the mortgage market, meaning an increase in the number of Germans interested in buying their houses, rather than renting them out. Around 60$ rent their house out, bringing increased demand for purchasing, upon the liberalisation of mortgages within the country.

There is an expected growth of 2.5% in 2007, with house prices expected to increase by 0.5%. There is a flurry of investment into Berlin with many UK and European investment banks attracted by low costs and cheaper commercial office space. Upon the reunification of Germany, Berlin has had to play catch up with Munich and Frankfurt, and is finally starting to catch-up.

However, there is the unusual situation of property in a capital city half the price of other cities within the country.

The best areas within Berlin to purchase investment property are in Charlottenburg and Mitte, amongst the most exclusive in the city. However, these are the investments which are likely to see the biggest price increases over the next five years, as more and more Berliners look to invest in their own homes. As investment property in Berlin increases in popularity, now is the time to buy.

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