Berlin Property for Sale
A web resource for UK and Irish buyers looking to invest in Berlin propertyBerlin Property for Sale
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| Foreign investors home in on Berlin property | ||
10 June 2006 Financial Times According to The Financial Times, real estate agents, lawyers, and tax advisers across the German capital are reporting a sharp increase in interest from Irish, Scandinavian, British and Spanish buyers. Engel & Völkers the city's largest real estate broker reported that 80 per cent of its deals are now with foreign buyers. W&N Immobilien reported that Irish and Danish private investors have been swamping the market in recent months. The number of real estate transaction rose from 1,218 in 2004, to 2,208 last year, according to government statistics. |
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Private equity funds, mainly US-based, have been joined by smaller investors looking for whole rented buildings. These investors have also entered the market for medium-size flats in renovated historical blocks. The Financial Times attributed the increased interest to the wealth affect of rising property prices in investors' domestic markets, and the increase in direct air flights to the city. |
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Berlin
based German Property Investments elaborated that investors have
built up sizeable equity in domestic properties and want to realize
and hedge this gain. Investors should remain focused on yields as
capital gains may be modest said the company. DB Research explained
that while the major private equity funds' activities drew investor
attention to the Berlin market, essentially all investor categories
are focused on the attractive yields. Because of low prices - €2,500 ($3,185, £1,722) per square metre on average - which are 30 per cent below Munich prices - and low but slowly rising rents, yields can reach 6 to 8 per cent, against, for example, 3 per cent in Ireland, according to the article. |
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