5 current news that real estate investors should know
The basis of good decisions is good information. This naturally also applies to real estate investments. We have selected 5 News providing you with valuable information mainly regarding the Berlin real estate market. Read this post to find out what makes Berlin real estate so interesting to real estate investors.
Fewer new build apartments than expected
Only 247,700 apartments were newly built in Germany in 2015. This corresponds to a minimal increase of one percent to the previous year as the Statistischen Bundesamt surveys show. The government target of 265.000 new apartments was thus not achieved. However, an increase in new build residential accommodation (plus 8.1 percent) and new build apartments in apartment buildings (up 4 percent) was achieved. Despite shorter processing times and higher approval rates with the building authorities, the new build is by far not enough to appease the demand for it.
Trendy city areas: Berlin still attractive
Good prices for residential properties in the classic trendy city areas have not been possible for quite some time according to an investigation by VDP Research Institute on behalf of the Handelsblatt. Trendy areas, as defined by VDP, are the districts, in the 15 major German cities, in which purchase prices are higher than in the remaining areas of the respective city. The scarce supply of apartments and building land has led to an increased demand in areas that were previously less prominent. Especially Berlin is in high demand among investors. Besides the well-known districts of Prenzlauer Berg, Friedrichshain, Kreuzberg and Neukölln, districts which previously did not rank as highly have now also become more attractive, such as Moabit and Gesundbrunnen.
Retail: Berlin most popular expansion location
New figures from CBRE show that Berlin is becoming increasingly popular with international retailers. The study “How Global is the Business of Retail” examined a total of 334 international trade and catering companies and found that more than 42 percent of them operate a shop in Berlin. Berlin is thus on the 10th place worldwide out of a total of 190 cities. In Germany, Berlin is even leader. Other top German cities such as Munich (40.1 percent), Frankfurt and Hamburg (both 37.2 percent), Dusseldorf (33.7 percent), Cologne (32 percent) and Stuttgart (25.2 percent) were not ranked within the top ten.
Gründungsmonitor 2016: Berlin is the start-up capital
No other German Bundesland can boast as many start-ups as Berlin. As the latest KfW-Gründungsmonitor (start-up monitor) shows, the Spree metropolis recorded twice as many start-ups as Bavaria and Baden-Württemberg between 2013 and 2015. According to KfW, Berlin is popular with young entrepreneurs mainly because of its short distances and excellent transport infrastructure. Berlin’s rapidly growing media and IT industry is also a plus.
The capital’s lively start-up scene not only creates necessary innovations, but also a large number of jobs. Alone in the service industry “information / communication” around 6,000 new jobs were created between March 2015 and March 2016.
Berlin plans new think tanks on the Tempelhofer Field
Under the brand name “Berlin Creative District”, the former Tempelhof airport building will become a new address for young creatives. Necessary building conversions will be implemented, so that companies in the creative industries can make use of the extensive grounds. Investments of 28 million euro by the city and the Bundesland are planned to also accommodate publicly accessible areas such as the Berlin Allied Museum next to the creative industries on the 300,000 square meter area. The main attraction of the new city district will be a 1.2 kilometre-long roof gallery, which is to extend over the entire length of the monumental building.
Conclusion
New build is lagging behind demand for apartments in all major cities. This leads to continuously rising rents and prices. In Berlin tomorrow’s trendy areas are emerging. The capital is also becoming increasingly interesting for retailers. Overall Berlin’s economy is buzzing, certainly also due to the many start-ups which Berlin attracts. Good arguments for investing in the Berlin residential property CALVIN BERLIN.