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Blog | 29. Januar 2017

GOING GLOBAL: FOREIGN INVESTORS TARGET BERLIN’S PREMIUM REAL ESTATE

Whether the new residential quarter at Leipziger Platz, the Palais Theising at the Brandenburg Gate or the exceptional project “Sapphire” on Chausseestraße – Berlin can also do luxury. In the past few years, more and more apartments have been created for more sophisticated buyers. Interest in exclusive objects is growing steadily. In the first six months of 2016 alone, the demand for exceptional properties has risen by a whopping 14 percent, according to an evaluation by the portal LuxuryEstate.com. This makes Berlin Germany’s largest market for premium residential properties (evaluation of the online portal LuxuryEstate.com).

CAPITAL GAINS VS. INITIAL YIELDS

Especially foreign investors have discovered Berlin for themselves. They come from Turkey, the Arab Emirates and the USA. The share of US-American buyers in the first half-year of 2016 rose by eleven percent compared to the previous year’s period. In contrast to many institutional investors, these private buyers have long since bid farewell to excessive yield expectations, and now accept three percent instead of five. There are others things that are more important than the initial return: the prospect of long-term capital gains, security, and a stable economic environment in times of volatile international markets. And that is exactly what Berlin premium properties offer.

LONDON, PARIS, NEW YORK − AND BERLIN

Some premium residential properties sell for more than three times the average market price, the brokerages report. At the top end of the market, buyers were already paying up to EUR 19,000 per square meter as early as 2015. The most expensive apartment changed owners for |EUR 4.3 million. In the “Sapphire” development from the US star architect Daniel Libeskind, which was completed in 2016, the recommended price for the most luxurious apartments started at EUR 15,000 per square meter. Market observers are therefore certain: Berlin has long played in the top league, alongside London, Paris and New York – without having reached the same price level. In these metropolises, buyers sometimes pay three times as much for an equivalent property. Advantage Berlin: On the Spree, there is still much potential for value growth.

In addition to the district of Berlin-Mitte, sophisticated buyers have been able to find what they are looking for in Charlottenburg-Wilmersdorf and Friedrichshain-Kreuzberg. For a luxury object with future-oriented prospects simply everything must be right. 1A-location, central and yet quiet, maybe a park view, modern architecture, generous room sizes, high ceilings, quality finishes, chic details, such as a dressing rooms, underground parking and an elevator directly into the apartment.

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Blog | 29. Januar 2017

GOING GLOBAL: FOREIGN INVESTORS TARGET BERLIN’S PREMIUM REAL ESTATE

Whether the new residential quarter at Leipziger Platz, the Palais Theising at the Brandenburg Gate or the exceptional project “Sapphire” on Chausseestraße – Berlin can also do luxury. In the past few years, more and more apartments have been created for more sophisticated buyers. Interest in exclusive objects is growing steadily. In the first six months of 2016 alone, the demand for exceptional properties has risen by a whopping 14 percent, according to an evaluation by the portal LuxuryEstate.com. This makes Berlin Germany’s largest market for premium residential properties (evaluation of the online portal LuxuryEstate.com).

CAPITAL GAINS VS. INITIAL YIELDS

Especially foreign investors have discovered Berlin for themselves. They come from Turkey, the Arab Emirates and the USA. The share of US-American buyers in the first half-year of 2016 rose by eleven percent compared to the previous year’s period. In contrast to many institutional investors, these private buyers have long since bid farewell to excessive yield expectations, and now accept three percent instead of five. There are others things that are more important than the initial return: the prospect of long-term capital gains, security, and a stable economic environment in times of volatile international markets. And that is exactly what Berlin premium properties offer.

LONDON, PARIS, NEW YORK − AND BERLIN

Some premium residential properties sell for more than three times the average market price, the brokerages report. At the top end of the market, buyers were already paying up to EUR 19,000 per square meter as early as 2015. The most expensive apartment changed owners for |EUR 4.3 million. In the “Sapphire” development from the US star architect Daniel Libeskind, which was completed in 2016, the recommended price for the most luxurious apartments started at EUR 15,000 per square meter. Market observers are therefore certain: Berlin has long played in the top league, alongside London, Paris and New York – without having reached the same price level. In these metropolises, buyers sometimes pay three times as much for an equivalent property. Advantage Berlin: On the Spree, there is still much potential for value growth.

In addition to the district of Berlin-Mitte, sophisticated buyers have been able to find what they are looking for in Charlottenburg-Wilmersdorf and Friedrichshain-Kreuzberg. For a luxury object with future-oriented prospects simply everything must be right. 1A-location, central and yet quiet, maybe a park view, modern architecture, generous room sizes, high ceilings, quality finishes, chic details, such as a dressing rooms, underground parking and an elevator directly into the apartment.

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