There’s been a “steep rise” in international investors coming into Berlin’s residential property market, reports the city’s biggest real estate broker. As a result, the number of foreign buyers has breeched the number of home-grown German buyers for the first time.
More people moved to Berlin from abroad than from Germany (93,000 compared to 89,500). As you’d expect, this level of demand is pushing prices up, with inner city districts such as Tiergarten (up 85%), Charlottenburg (up 56%) and Friedrichshain-Kreuzberg (up 49%) increasingly popular.
Berlin’s trendy Mitte district experienced an increase in population of 30,000 since 2011, the highest in the capital, with almost half of the population – 44% – moving there from abroad. It is also the district with the biggest rise in higher income earners with a net income of €6,000 per month and above. Sales in the luxury segment have outperformed the lower end of the market for the first time in 2015, with three times as many apartments were sold for more than €5,000 per square metre compared to those sold for less than €2,500 per square metre.
Ziegert reports that its sales in Berlin’s residential market increased by 6%, the company sold 450 flats worth 140 million euros in the first six months of 2016 and are forecasting an overall price increase of 20% by 2018.
Nikolaus Ziegert, Founder and Managing Director of Ziegert Bank-und Immobilienconsulting GmbH: “Berlin’s burgeoning tech sector is spurring a new swathe residential development in the city, as international investors realise the income potential inherent in the local market. Recently rated as a top investment destination for global venture capitalists, Berlin is increasingly popular with technology; media and telecoms (TMT) start up firms, attracted by low commercial rent prices and a conducive business environment.”