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Blog | 29. Januar 2017

BERLIN’S SOUTHWEST – IN THE MIDST OF NATURE, IN THE MIDST OF THE CITY

Steglitz, Zehlendorf, Dahlem – The southwest of Berlin is among the top locations in the city. Upscale flair, waterways and green areas, chic homes and stylish villas on park-like grounds dominate this part of Berlin. And yet the hustle and bustle of the city is only ten minutes away by subway, which makes it an expensive place to live. While rents and residential property prices have risen dramatically, especially in Berlin-Mitte, the city’s southwest districts are now catching up. Rents in good locations range between EUR 14 and 16/sqm per month; detached and semi-detached houses sold for an average of EUR 575,000 in 2016. Even in less desirable locations, such as near large traffic intersections, prices of almost EUR 400,000 are to be expected, according to the IVD real estate association. Thus Steglitz-Zehlendorf is Berlin’s second most expensive district after Charlottenburg-Wilmersdorf.

The popularity boom in the southwest of Berlin is mainly due to the fact that more and more condominiums are being built here. Where aging detached and semi-detached houses or single villas once dominated the cityscape, today, the district’s development land is used to create high-quality housing to accommodate the growing number of inhabitants. The consequence: A noticeable upsurge in prices. In Dahlem, the square meter price reached EUR 6,200 last year. In comparison, an average of EUR 3,200/sqm is the current norm in Berlin.

CHINESE INVESTORS ARE ATTRACTED TO DAHLEM, STEGLITZ AND ZEHLENDORF

This development is bringing more and more investors on board. And, for some time now, they have not just been coming from Berlin or the rest of Germany. Asian investors in particular have discovered the capital for themselves, Chinese investors are the second largest buyers of residential property after the Americans and the Russians. In October alone, the largest Chinese sovereign wealth fund invested EUR 1.2 billion in Germany – 40 per cent of the 16,000 apartments are located in the metropolis on the Spree.

Private Chinese investors are also flocking to Berlin, which is regarded as “Europe’s new capital of investment” in China (Info: China correspondent for German newspaper, taz). Transparent structures, economic stability and a favorable exchange rate have earned Berlin this title over the past few years. With average purchase prices between EUR 2,500 and 4,000, property is also affordable by Chinese standards. In Peking a condominium costs more than twice as much. Since Chinese people are allowed to have only one home in their home country, several families sometimes pool their resources to raise enough money to purchase larger properties, market observers report.

LARGE APARTMENTS FOR RENT

Above all, Chinese private investors appreciate large apartments, which in most cases they do not use themselves, but prefer to rent out. On average, they will pay around EUR 500,000 for such a property. In their search for suitable luxury properties, they are focussing ever more on Berlin’s southwest. Dahlem is especially popular because it has the district’s largest apartments, averaging 105 square meters.

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Blog | 29. Januar 2017

BERLIN’S SOUTHWEST – IN THE MIDST OF NATURE, IN THE MIDST OF THE CITY

Steglitz, Zehlendorf, Dahlem – The southwest of Berlin is among the top locations in the city. Upscale flair, waterways and green areas, chic homes and stylish villas on park-like grounds dominate this part of Berlin. And yet the hustle and bustle of the city is only ten minutes away by subway, which makes it an expensive place to live. While rents and residential property prices have risen dramatically, especially in Berlin-Mitte, the city’s southwest districts are now catching up. Rents in good locations range between EUR 14 and 16/sqm per month; detached and semi-detached houses sold for an average of EUR 575,000 in 2016. Even in less desirable locations, such as near large traffic intersections, prices of almost EUR 400,000 are to be expected, according to the IVD real estate association. Thus Steglitz-Zehlendorf is Berlin’s second most expensive district after Charlottenburg-Wilmersdorf.

The popularity boom in the southwest of Berlin is mainly due to the fact that more and more condominiums are being built here. Where aging detached and semi-detached houses or single villas once dominated the cityscape, today, the district’s development land is used to create high-quality housing to accommodate the growing number of inhabitants. The consequence: A noticeable upsurge in prices. In Dahlem, the square meter price reached EUR 6,200 last year. In comparison, an average of EUR 3,200/sqm is the current norm in Berlin.

CHINESE INVESTORS ARE ATTRACTED TO DAHLEM, STEGLITZ AND ZEHLENDORF

This development is bringing more and more investors on board. And, for some time now, they have not just been coming from Berlin or the rest of Germany. Asian investors in particular have discovered the capital for themselves, Chinese investors are the second largest buyers of residential property after the Americans and the Russians. In October alone, the largest Chinese sovereign wealth fund invested EUR 1.2 billion in Germany – 40 per cent of the 16,000 apartments are located in the metropolis on the Spree.

Private Chinese investors are also flocking to Berlin, which is regarded as “Europe’s new capital of investment” in China (Info: China correspondent for German newspaper, taz). Transparent structures, economic stability and a favorable exchange rate have earned Berlin this title over the past few years. With average purchase prices between EUR 2,500 and 4,000, property is also affordable by Chinese standards. In Peking a condominium costs more than twice as much. Since Chinese people are allowed to have only one home in their home country, several families sometimes pool their resources to raise enough money to purchase larger properties, market observers report.

LARGE APARTMENTS FOR RENT

Above all, Chinese private investors appreciate large apartments, which in most cases they do not use themselves, but prefer to rent out. On average, they will pay around EUR 500,000 for such a property. In their search for suitable luxury properties, they are focussing ever more on Berlin’s southwest. Dahlem is especially popular because it has the district’s largest apartments, averaging 105 square meters.

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