Diamona & Harnisch - Life's Finest Values
Menu
Blog | 29. Januar 2017

STRONG BUSINESS LOCATION, ATTRACTIVE METROPOLIS

Berlin is an incredibly popular tourist destination – the number of holidaymakers is constantly on the rise and has now reached twelve million per year. More than ever before, Germany’s capital is an attractive destination for international guests – around 4.6 million overseas visitors came to the city last year to gain firsthand experience of Berlin’s vibrancy and color and its multi-facetted cultural offerings. In addition to these tourists, more and more people are also coming to Berlin to make the city their new home. The population of Germany’s largest city has risen to 3.52 million – roughly 150,000 more than just five years ago.

BERLIN IS GERMANY’S OFFICE CAPITAL

It’s not only a great place to live, there are more and more jobs in Berlin too. The city’s economy has been delivering strong growth for a number of years now. For the fourth quarter in a row, the Spree metropolis defended its crown as Germany’s most popular office market. Neither Munich, nor Hamburg or Frankfurt am Main were able to wrestle the title from Berlin. BNP Paribas Real Estate recently announced that a total of just under 840,000 square meters of office space was let in the city in 2016. Not even the Bavarian capital, Munich, managed to match this impressive total, and had to settle for a full-year total of less than 800,000 square meters; Frankfurt and Hamburg didn’t even manage to top 600,000 square meters.

The strong demand for commercial property reflects the growing importance of Berlin as an economic motor. According to Colliers International, transactions involving commercial real estate in Berlin totaled EUR 4.9 billion in 2016. This placed Berlin third in the national rankings, trailing Munich (EUR 6.86 billion) and hot on the heels of Hamburg (EUR 4.91 billion).

Berlin’s ascension has been underway for years – more tourists, more inhabitants, more businesses. The amount of available on Berlin’s office market has become steadily scarcer. In comparison with the previous year, the volume of office space available at short notice fell by almost one third. According to BNP, the office vacancy rate has dropped to just 2.8 percent. The most drastic declines in vacancies were registered in Berlin’s central districts. This is where large numbers of people want to combine both living and working. Offices, apartments, schools, bars, restaurants and shops – Berliners love their neighborhoods because they provide every convenience of a booming metropolis within easy reach.

RESIDENTIAL REAL ESTATE ON THE SPREE IS A SAFE INVESTMENT

As a result, the housing market is becoming ever tighter. A recent analysis from Aengevelt estimated that roughly 248,000 new residential units need to be built by 2030. This means that 17,500 new apartments must be developed every single year. Unfortunately, this total has only ever been achieved in one year, namely 2016. Over the last ten years, an average of 5,000 new apartments have come to market. This is nowhere near enough to meet the rapid growth in demand. The latest population forecasts from Berlin’s Senate Department for Urban Development and the Environment predict that the city’s population will increase to four million by 2030, excluding refugees. Housing will become an even more scarce commodity. Anyone who buys an apartment in Berlin right now will certainly be sitting pretty – especially given the historically low interest rates.

Buying an apartment is well worth it, especially as rental prices will continue to increase. Berliners are already paying seven to eight per cent more in rent each time they move, the local Tenants’ Association has reported. And that’s not set to change this year – the shortage of available housing will see to that. As a result, citizens and business representatives are demanding more and quicker building permits, increased housing density in central urban districts, and additional investment in IT infrastructure to support the city’s businesses. Christian Wiesenhütter, boss of Berlin’s Chamber of Commerce, says that Berlin is, “Number one for job growth,” not least because of its booming IT sector, and that “The chances of finding a job in Germany’s capital city are good and demand for skilled workers is higher than ever before.” And long may it continue.

Archiv

 
Blog | 29. Januar 2017

STRONG BUSINESS LOCATION, ATTRACTIVE METROPOLIS

Berlin is an incredibly popular tourist destination – the number of holidaymakers is constantly on the rise and has now reached twelve million per year. More than ever before, Germany’s capital is an attractive destination for international guests – around 4.6 million overseas visitors came to the city last year to gain firsthand experience of Berlin’s vibrancy and color and its multi-facetted cultural offerings. In addition to these tourists, more and more people are also coming to Berlin to make the city their new home. The population of Germany’s largest city has risen to 3.52 million – roughly 150,000 more than just five years ago.

BERLIN IS GERMANY’S OFFICE CAPITAL

It’s not only a great place to live, there are more and more jobs in Berlin too. The city’s economy has been delivering strong growth for a number of years now. For the fourth quarter in a row, the Spree metropolis defended its crown as Germany’s most popular office market. Neither Munich, nor Hamburg or Frankfurt am Main were able to wrestle the title from Berlin. BNP Paribas Real Estate recently announced that a total of just under 840,000 square meters of office space was let in the city in 2016. Not even the Bavarian capital, Munich, managed to match this impressive total, and had to settle for a full-year total of less than 800,000 square meters; Frankfurt and Hamburg didn’t even manage to top 600,000 square meters.

The strong demand for commercial property reflects the growing importance of Berlin as an economic motor. According to Colliers International, transactions involving commercial real estate in Berlin totaled EUR 4.9 billion in 2016. This placed Berlin third in the national rankings, trailing Munich (EUR 6.86 billion) and hot on the heels of Hamburg (EUR 4.91 billion).

Berlin’s ascension has been underway for years – more tourists, more inhabitants, more businesses. The amount of available on Berlin’s office market has become steadily scarcer. In comparison with the previous year, the volume of office space available at short notice fell by almost one third. According to BNP, the office vacancy rate has dropped to just 2.8 percent. The most drastic declines in vacancies were registered in Berlin’s central districts. This is where large numbers of people want to combine both living and working. Offices, apartments, schools, bars, restaurants and shops – Berliners love their neighborhoods because they provide every convenience of a booming metropolis within easy reach.

RESIDENTIAL REAL ESTATE ON THE SPREE IS A SAFE INVESTMENT

As a result, the housing market is becoming ever tighter. A recent analysis from Aengevelt estimated that roughly 248,000 new residential units need to be built by 2030. This means that 17,500 new apartments must be developed every single year. Unfortunately, this total has only ever been achieved in one year, namely 2016. Over the last ten years, an average of 5,000 new apartments have come to market. This is nowhere near enough to meet the rapid growth in demand. The latest population forecasts from Berlin’s Senate Department for Urban Development and the Environment predict that the city’s population will increase to four million by 2030, excluding refugees. Housing will become an even more scarce commodity. Anyone who buys an apartment in Berlin right now will certainly be sitting pretty – especially given the historically low interest rates.

Buying an apartment is well worth it, especially as rental prices will continue to increase. Berliners are already paying seven to eight per cent more in rent each time they move, the local Tenants’ Association has reported. And that’s not set to change this year – the shortage of available housing will see to that. As a result, citizens and business representatives are demanding more and quicker building permits, increased housing density in central urban districts, and additional investment in IT infrastructure to support the city’s businesses. Christian Wiesenhütter, boss of Berlin’s Chamber of Commerce, says that Berlin is, “Number one for job growth,” not least because of its booming IT sector, and that “The chances of finding a job in Germany’s capital city are good and demand for skilled workers is higher than ever before.” And long may it continue.

Archiv

 

© 2017 D & H Projektmanagement GmbH | Voßstr. 23 | 10117 Berlin | T. +49(0)30. 89 38 46 0 | info@diamona-harnisch.com | Monday – Friday: 09:00 am – 18:00 pm
ImpressumHaftungsausschluss | Datenschutz

Instagram

© 2018 Diamona & Harnisch Development GmbH
Voßstr. 23 | 10117 Berlin | T. 030 89 38 46 0 | info@diamona-harnisch.com

Imprint & Disclaimer