Montag, 23. Juni 2008
Buying Berlin Property
Very little housing construction has taken place in the last 10 years, spelling out an expected housing price increase due to the eventual shortage. A bright future is being predicted for investors into Berlin, as house prices are expected to rise, with over half of the inhabitants under the age of 35, there will be a cultural shift towards those buying their own homes, and we should expect to see a increase in house prices in the near future.
There's been a lot of interest in Germany recently, led by major institutions and banks who can sniff a profit. The investment levels shown by these major investors buying Berlin property, will start to drive prices up, which keeps home ownership down, although the demand will still be there.
There are great opportunities to make short term capital gains, or long term financial yields when buying property in Berlin. When buying in Germany, both these options are available to investors, so it is worth considering which is more important to you.
The boom in construction in the early 1990's happened at the same time a large number of residents left Berlin but, more importantly, their spending power diminished, also coinciding with an increase in unemployment levels. The result was a drop in house prices in the city.
Between 1994 and 2004, new development prices dropped by 30%. Germany is the only country in Europe where prices dropped in this time period. Berlin now represents the most competitively priced investments in Europe.
A long period of economic stagnation has helped to open up some new opportunities in the German property market. The introduction into the Euro had a devastating effect on the German economy and the stock market, leading Germans to look at buying property as an alternative to buying shares. A new government and new policies have woken up the sleeping economy, offering different kinds of investments for the inhabitants and foreign investors.
Now is the time for the smaller overseas property investor to consider buying in Berlin's housing market. Research reveals compelling evidence that buying property in Berlin is the next big thing in European city investment.
Berlin Investment Property
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.
Freitag, 20. Juni 2008
Berlin Property: Unprecented Growth Makes a Hot Prospect
The reports are true; Berlin is currently one of the safest countries in the world to make a property investment, but a new report also hints at it being one of the best, writes Liam Bailey.
According to a major study into the Berlin housing market in the first quarter of 2008, rental rates are growing in every district in the city. It is 50/50; in 6 of the 12 districts rental rate growth is accelerating, and in the other 6 it is slowing, but in none are rents bottoming out or falling.
In the same report last year, rental rate growth was accelerating in only three districts: Spandau, Charlottenburg-Wilmersdorf, and Treptow-Köpenick, in all the rest rents were either bottoming out or falling.
In Spandau, which displayed the fastest growing rental rates in last year’s report, rental rate growth has begun to slow according to the recent report, but in the other two districts that saw accelerating rental rate growth last year — Charlottenburg-Wilmersdorf and Treptow-Köpenick — rental rate growth is still accelerating.
Mitte and Neukölln, two districts that saw falling rental rates this time last year, along with Pankow and Steglitz-Zehlendorf, that both saw rental rates bottoming out last year, have joined Charlottenburg-Wilmersdorf and Treptow-Köpenick in the rental rate accelerating bracket in this year’s report.
The fact that 5 of the 6 districts now seeing rental rate growth slowing, were in the rental rates bottoming out, or rental rates falling brackets in the report this time last year, means that they must have seen accelerated growth at some time over the past year. This all shows that Berlin rental rates have been on an upward trend for the past year.
Germany’s government is strict about rental rate rises in Berlin. It has to be, to avoid people being priced onto the streets because of the large portion of Berlin’s population forced to live in rented accommodation, because they haven’t been able to buy their own home. Landlords are only allowed to raise rental rates when the economy and wages are growing, and even then by no more than 20% in three years. Berlin rental growth is so strong now because the economy is extremely strong.
The extremely large proportion of Berlin residents either forced or choosing to live in rented accommodation (82%) gives Berlin one of the strongest residential rental markets in the world, but government control means residential tenancies barely achieve more than a five percent yield.
The current unprecedented level of economic growth, and the fact that it is largely fuelled by growth in the export sector, which should see Germany survive a rocky global economy better than most, has brought reports that the government may soon be able to bring new legislation relaxing the strict laws governing rental rate rises.
For the first time there is hope of achieving higher yields in Berlin, which should really be the case from the solid all year round rental that is so easily achievable. But even without a government relaxation, the growth in Berlin rental rates without government help, the aforementioned stability of Germany’s economy and the high likelihood of it best weathering the global economic storm, is turning Berlin into one of the world’s most popular destinations for a property investment.
Donnerstag, 19. Juni 2008
Berlin Mitte goes Bilbao

Is downtown Berlin the next Bilbao? Daniel Miller reports on plans for a massive creative development at the heart of Germany’s capital including a modern art museum rivalling Frank Gehry’s flashy Guggenheim.
Ever since Frank Gehry’s fantastically popular titanium Guggenheim branch sparked the rebirth of the gritty Basque city of Bilbao in northern Spain, the contemporary art museum has become a favourite tool to drive urban regeneration efforts.
So it’s perhaps only logical for Berlin – having staked its economic future on the creative industries – to follow the Basque example by confirming this week the construction of a bold new structure for 21st century art right near the city’s new central train station.
“Museums are capable of attracting the people to an area and upgrading it,” Torsten Wöhlert, spokesman for Berlin’s culture ministry, told The Local on Wednesday. “This mirrors the development of Berlin itself, which over the last ten years has become a European, if not global centre for creativity and the arts.”
Wöhlert said details of the ambitious plans for a new contemporary art museum would be officially announced at the end of the month, but the German press reported this week that city had agreed to a controversial deal where a private investor would build an architectural masterpiece in return for the building rights on the exclusive waterfront property right next to the train station.
Most speculation in the Berlin art scene has been focused on Nicolas Berggruen, the son of the deceased art collector Heinz Berggruen. Not only does he have an impressive selection of artwork for such a high-profile project, but he also has good contacts with city officials, according to daily Die Welt.
“The plan is already established,” Wöhlert said. “Berlin will provide only the basics, and others will contribute the rest.”
If successful, the bold museum project will anchor the redevelopment of a massive swath of Berlin’s still barren centre.
Heidestrasse, a long street dominated by cars and flanked by underused warehouses, ends right where the new museum will be built. Perhaps surprisingly, nearly 20 years after German reunification, the road at heart of the country’s capital is essentially a useless wasteland - aside from moving traffic to the nearby train station.
Yet changes are afoot. A number of art galleries – among them the prestigious, Christie's-controlled contemporary dealer Haunch of Venison – have begun to spring up on the street's southern end, attracted by cheap and plentiful space in warehouses close to Berlin’s modern art museum the Hamburger Bahnhof.
Bigger than Potsdamer Platz
And the redevelopment of the area is set to intensify after a collaborative design by the architects KCAP/ASTOC and Studio Urban Catalyst was selected last month to form the basis of a master plan for the derelict district. Involving around 610,000 square metres of floor area and 1,200 apartments, the project is around twice the size of Berlin’s vast construction site at Potsdamer Platz in the 1990s.
Those works remain controversial to this day. Writing on the topic in the New York Review of Books in November 2001, the venerable American architecture critic Martin Filler attacked the development as super-sized, anti-urban, and cravenly commercial. Vivico, the real estate developer which is the driving force between the Heidestrasse project, claims that their own approach is different. “The Potsdamer Platz development was emotionally very connected to German unification,” said the company's spokesman Wilhelm Brandt. “In a way, it was very revolutionary. Our project is more evolutionary. It’s about the new Berlin Mitte, and about how one can organically grow and develop a quarter.”
Vivico is a former government subsidiary, privatized at the beginning of the year, and now owned by the Austrian real estate giant CA Immo. The holder of vast tracts of inner-city brownfield sites, once owned by railway operator Deutsche Bahn, but bequeathed to the German government in 2001. The company's last major urban regeneration project was Munich's Arnulfpark, a large-scale exercise in a mixed-use district that the company say is their working model for Heidestrasse.
Berlin isn't Munich
But Berlin isn't Munich, and in a least one major respect, Vivico have altered their development concept dramatically. Whereas the breakneck speed of the Arnulfpark development earned the project the title of “Munich’s Fastest Construction Site,” the Heidestrasse project is expected to reach completion any time between 10 and 15 years – according to Vivico – and 20 to 30 years, according to Studio Urban Catalyst's principal architect Klaus Overmeyer.
The logic behind this drawn-out time-scale is commercial: while Bavaria's capital enjoys a lucrative shortage of real estate, Berlin suffers from a less-profitable glut.
According to Overmeyer, Berlin presently plays host to around two million square feet of empty office space – a fact that means that natural demand for a further 100,000 square metres is essentially non-existent. Hence Vivico have been drawn to pursue a slow-burn strategy of artificial stimulation, managed through a series of phases that boil-down, in effect, to successive injections of art. The first of these remains represented in the Hamburger Bahnhof itself – a building that Vivico owns.
The latest was completed two weeks ago in the form of the Halle am Wasser, a renovated modernist shed housing six upmarket, commercial galleries.The Halle am Wasser is the first element of a larger development program that Vivico call the “kunst-campus”. The operational idea is to catalyze the area with creativity, in order to clear a path for more directly profitable developments later.
Vivico’s Brandt admitted they had been surprised by the announcement of the new modern art museum this week, but told Berlin daily Der Tagesspiegel it could only increase the development’s creative pull.
“It’s like a sausage counter – the bigger the selection the better,” he quipped.
Berlin to Exchange Exclusive Real Estate for New Art Museum
source: DW-WORLD.DEThere's just one catch: The taker has to include a 10,000 square-meter modern art museum in the shopping and office complex that's foreseen for the site.
According to the call for bids, which are to be advertised throughout Europe at the end of the month, the new museum should resemble the Guggenheim Museum in Bilbao, Spain. Completed in 1997, the masterpiece by Canadian-American architect Frank Gehry is one of five modern art museums funded by the Guggenheim Foundation.
A stylish building and massive modern art collection did just the trick to rejuvenate the small town of Bilbao. The one million tourists who visit the Spanish Guggenheim each year are a financial windfall for Bilbao.
Prospective buyer
Multi-billionaire developer Nicolas Berggruen is considered a favorite for the Berlin project. Both art and money run in the family. His father Heinz Berggruen, who died last year at the age of 93, offered his 750-million-euro art collection to the state-run Prussian Cultural Heritage Foundation in 2000 in a gesture of reconciliation.
Berggruen, the elder, fled Germany during the Holocaust and immigrated to the US. He didn't return to Germany until 1996. The Berggruen Museum across from the Charlottenburg Palace was built to house the family's Classical Modern collection, which boasts works by Picasso, Klee, Giacometti and Matisse.
According to a report in the Berliner Zeitung, 46-year-old Nicolas Berggruen is also considering several other locations in Berlin for his own substantial modern art collection.
Land-for-museum deal questioned
The terms of the unusual agreement have stirred up some political controversy in a country where privately sponsored cultural institutions are a rarity and where complaints about under-funded museums are commonplace.
Greens fiscal spokesperson Jochen Esser, for example, warned against "giving away plots of land for free that are worth millions."
Dubbed "poor but sexy" by its own Mayor Klaus Wowereit, the German capital could do with a tourism-driven financial boost a la Bilbao -- regardless of who owns the museum.
However, a little competition wouldn't hurt the Hamburg Bahnhof, Berlin's only other modern art museum, opined the German daily Die Welt on Thursday, June 19. Critics have complained about the lack of innovative new exhibitions in the museum. The state-sponsored museum was built in 1996 to house several private collections, including that of Erich Marx. Notably, in 2004, it also obtained a seven-year loan of the Friedrich Christian Flick Collection.
Also coming soon: exhibition hall
According to reports, the museum at Berlin's Humboldt Harbor is not intended to replace plans for a new national exhibition hall in the city, which have had Wowereit's support. The hall would provide exhibition space for international artists who live or work in Berlin, but a location has not yet been determined.
In the meantime, ground was recently broken for a temporary exhibition space on the Schlossplatz, which is scheduled to open in October and remain there for two years.
Mittwoch, 18. Juni 2008
Berlin - "Europe´s Butterfly" - USA TODAY
"The city is dynamic—it's always changing and there is always something new to discover," says Heather Ellis, a Pennsylvania native who now lives in Berlin. "Berlin is literally alive with history in a way that no other city in Europe is. It's young because of its students, full of culture because of its artists, and a bit unpolished because of its past, which makes it seem like the visitor has stumbled onto something truly special. It is also much cheaper than any other major Western European city."
With literally hundreds of museums and galleries and thousands of restaurants, shops, and nightclubs, there's no shortage of things to see and do in the city. Be sure to pick up a Berlin WelcomeCard, (16.50 euros for 48 hours, 21.50 euros for 72 hours) which offers free public transportation and half-price admission to more than 130 attractions. Some must-see museums include the Gemaldegalerie (8 euros), which houses some of Europe's top collections of 13th to 18th century art and the Pergamonmuseum (8 euros), which displays Greek and Roman antiquities and Islamic art. Sarah Steinberg, an engineer from Boston who studied in Berlin, highly recommends the Museum Haus am Checkpoint Charlie (Berlin Wall Museum; 9.50 euros) and the Judisches Museum (5 euros), a sobering and powerful museum focusing on Jewish history in Germany. "It is seriously amazing and one of my favorite museums in all Europe," says Steinberg.
You should take some time to walk around the city and explore its different neighborhoods. "If you're here on a Sunday, I would say do as the Berliners do: Have lazy brunch in Prenzlauerberg (a pretty neighborhood with lots of cafes and shops) and then spend the afternoon at the Mauerpark Flea Market (one of several weekend markets in Berlin where you pick up some real bargains)," says Ellis.
Many Berliners treat clubbing almost as a second job, so, for tourists, going to night clubs is a great way to experience the city's latest music, trends, and fashion on full display. Since clubs come and go almost overnight, it's hard to make specific recommendations, but if you pick up a copy of the English-language Ex-Berliner, you'll find listings for the latest hot spots.
Freitag, 13. Juni 2008
Städte-Ranking: Berlin schlägt London
Berlin - Die weltweite Finanzkrise hält Europas Immobilienmärkte im Würgegriff - mit einer Ausnahme: Berlin. Während in London, Paris und Madrid die Preise von Bürotürmen und Einkaufszentren, von Eigentumswohnungen und Penthäusern in die Tiefe rauschen, zeigt sich der Markt in der deutschen Hauptstadt erstaunlich stabil. Denn Investoren aus Skandinavien, den USA und dem Nahen Osten investieren kräftig in Berliner Objekte.
Welchen Reiz die deutsche Hauptstadt auf milliardenschwere ausländische Immobiliengesellschaften hat, zeigt eine aktuelle Umfrage der Wirtschaftsberatungsgesellschaft PricewaterhouseCoopers (PwC) und des renommierten Forschungsinstituts Urban Land (ULI) unter rund 500 internationalen Immobilienexperten. Danach ist die deutsche Hauptstadt im Ranking der europäischen Standorte binnen Jahresfrist von Platz 25 auf Rang neun gestiegen.
Vier deutsche Städte liegen vorn Zwar schnitten Frankfurt/Main, Hamburg und München noch besser ab. Doch eines zeigte die Umfrage deutlich, meint Helmut Trappmann, Leiter des Immobilienbereichs bei PwC: "Berlin hat sich als Immobilienstandort zurückgemeldet." Die Entwicklung in Berlin sei bemerkenswert, lag es im Städte-Ranking 2007 noch abgeschlagen auf den hinteren Plätzen. "Über den Aufstieg aus dem unteren Feld in die Führungsliga der europäischen Immobilienstandorte freuen wir uns", sagte Berlins Bausenatorin Ingeborg Junge-Reyer (SPD). "Wir merken auch auf der Mipim in Cannes, wie stark das Interesse an Berlin ist."
Auf dem Berliner Immobilienmarkt sehen die PwC-Experten vor allem Potenzial für Wohnimmobilien. Hier raten 45 Prozent zum Kauf. Allerdings werden die Investitionsrisiken in Berlin (Rang 18) höher als in Hamburg und München eingeschätzt.
Nicht nur bei Wohn-, sondern auch bei Gewerbeimmobilien sehen Investoren in der Hauptstadt Potenzial. Das bestätigt auch Rolf Scheffler, Chefanalyst der Immobilienberatungsgesellschaft Aengevelt: "Weil Unternehmen in Berlin weiterhin neue Mitarbeiter einstellen, gehen Investoren davon aus, dass das Flächenangebot bei Wohn- und Gewerbeimmobilien in den kommenden Jahren schrumpfen und die Mieten von Wohnungen, Büros und Einzelhandelsflächen steigen werden."
Die hohe Erwartungshaltung spiegelt sich auch in der Preisentwicklung wider. "Während die Preise bei Londoner Gewerbeimmobilien seit Beginn der Krise im vergangenen Sommer um 20 Prozent gefallen sind, haben Berliner Topobjekte seither kaum an Wert verloren", berichtet Scheffler. In Toplagen ziehen die Spitzenmieten für Büros sogar wieder an.
Wie viel Geld manche Investoren trotz der Finanzkrise für Berliner Trophäen zu zahlen bereit sind, zeigt das Beispiel Potsdamer Platz. Ende vergangenen Jahres, inmitten der Turbulenzen an den Finanzmärkten, erwarb die schwedische SEB-Bank das Quartier vom Automobilkonzern Daimler für ihren offenen Immobilienfonds Immoinvest zum stolzen Preis von 1,4 Mrd. Euro. Die Bank beziffert die Rendite aus den Mieteinnahmen mit fünf Prozent. Das gesamte Sony-Center ging gerade an US-amerikanische Investoren wie Morgan Stanley. Die Rede ist von 600 Millionen Euro.
Dass Deutschlands Hauptstadt dem rauen Sturm an den internationalen Immobilienmärkten trotzt, hat mehrere Ursachen. "Anders als an vielen anderen Standorten stehen in Berlin derzeit vergleichsweise wenige Immobilien überhaupt zum Verkauf", analysiert Aengevelt-Chefanalyst Scheffler. Nach seinen Berechnungen wechselten in 2006 und 2007 Wohn- und Gewerbeimmobilien im Gesamtwert von 29,8 Mrd. Euro in der Hauptstadt den Eigentümer. Nach einer Studie der Beratungsgesellschaft Atisreal übertraf das Investmentvolumen am Berliner Gewerbeimmobilienmarkt im vergangenen Jahr erstmals sogar das Geschehen in München und fiel lediglich geringfügig geringer aus als in der Bankenmetropole Frankfurt/Main.
Wegen der hohen Erwerbsnebenkosten (Makler-, Notargebühr, Grunderwerbsteuern) werden Immobilien aber nicht sofort wieder am Markt angeboten. Die Käufer trennen sich meist erst dann von ihren Objekten, wenn deren Marktwert deutlich gestiegen ist. Scheffler: "Deshalb werden in diesem Jahr deutlich weniger Immobilien in Berlin zum Kauf angeboten werden als in den Vorjahren." Das dürfte das Preisniveau auch in den kommenden Monaten weiter stabilisieren. Preisstabilisierend wirkt zudem der Anstieg der Büromieten. Denn internationale Konzerne entdecken zunehmend Berlin als Standort.
So verlagerte vergangenes Jahr das US-Pharmaunternehmen Pfizer seine Deutschlandzentrale von Karlsruhe in die Spreemetropole. Nach einer Studie der Immobilienberater von CB Richard Ellis verteuerten sich die Büromieten in Berlin im vergangenen Jahr im Schnitt um 4,8 Prozent. Damit fiel der Anstieg signifikant höher aus als in vielen anderen Städten. In Hamburg konnten Eigentümer bei Neu- und Anschlussvermietungen die Preise lediglich um 2,2 Prozent erhöhen, in Lissabon nur um 1,3 Prozent. In Amsterdam, Athen und Brüssel stagnierten die Mietpreise sogar.
Mieten ziehen in der City an Nach einer Untersuchung der Beratungsgesellschaft DTZ müssen Unternehmen für Büroflächen im West-Teil heute 2,50 Euro mehr pro Quadratmeter und Monat zahlen als vor einem Jahr. In der Innenstadt-Ost stiegen die Spitzenmieten gar um fünf Euro. Weitere Impulse erwartet DTZ-Bürovermietungschef Rainer Hamacher vom Ausbau des Flughafens Schönefeld zum Berlin-Brandenburg International (BBI): "Das wird die Hauptstadt wirtschaftlich ein großes Stück voranbringen und für die Ansiedlung weiterer Unternehmen sorgen."
