Investing in Capital Cities: Berlin
Posted by Jude Buttle on Tuesday, August 05, 2008
Famous for its wall that divided East and West Germany, Berlin has now built up a reputation as a diverse and cultured city.
Brandenburg Gate - photo by ceriess
Fast Facts
Country: Germany
Population: 3,416,300
Area: 892 km²
Currency: € Euro
Official Language: German
Telephone Code: +49 30
Location Information
Berlin is the largest city and one of the sixteen states of Germany. Located in the north-eastern part of the country, it is the centre of the Berlin-Brandenburg metropolitan area, which comprises 5 million people from more than 180 nations.
Shortly after the Second World War, the city was divided into East Berlin - which became the capital of East Germany - and West Berlin, which became a Western enclave. The Berlin Wall was constructed by the communists and separated the west side from the east side and the rest of East Germany from 1961-1989. During 1989, the wall was mostly demolished as East Berliners gained access to the free west. This led to the reunification of Germany in 1990 and Berlin regained its status as the capital of the entire country.
What's the Attraction?
Berlin is a very cultured city, home to more than 150 museums, a selection of them being based on the UNESCO World Heritage Site, Museum Island. In the Kreuzberg part of Berlin there is the Jewish Museum, which exhibits 2,000 years of German-Jewish history, the German Museum of Technology and the Gay Museum (Schwules Museum), reflecting the freedom and openness of a modern Berlin.
The city also has a number of galleries, theatres, three main opera houses and seven symphony orchestras, with the Berlin Philharmonic Orchestra famous throughout the world.
The city has many cafés and restaurants in every price category, featuring international and local specialties. At night-time Berlin comes alive and entertains visitors with countless bars, discos and clubs that stay open all night, reflecting the vibrancy and vitality of the city.
Berlin Architecture
The Brandenburg Gate is a former city gate and an iconic landmark of Berlin and Germany. Built in the 18th century, it also appears on German euro coins and is considered one of Europe's most famous landmarks.
The Fernsehturm (TV tower) at Alexanderplatz in Mitte is the second highest building in the European Union at 368 meters (1,207 ft). Built in 1969, the city can be viewed from its 204 meter (669 ft) high observation floor.
The East Side Gallery is an open-air exhibition of art painted directly on the last existing portions of the Berlin Wall. It is the largest remaining evidence of the divide the city once suffered from.
Gendarmenmarkt is a neoclassical square in Berlin and is bordered by two cathedrals of similar design, the French Cathedral and the German Cathedral. The Konzerthaus (Concert Hall), home of the Berlin Symphony Orchestra, is centre of attention between the two cathedrals.
Infrastructure & Investment
Since the political reunification of East and West Berlin, the city has developed a highly complex transportation infrastructure providing very diverse modes of urban mobility. As well as long distance rail lines that connect Berlin with other major German cities and neighbouring countries, the area is also known for its eco friendly encouragement of bicycle usage and has a highly developed bike lane system.
In 2007, the nominal GDP of the metropolitan area of Berlin experienced a growth rate of 1.8% and totaled €81.7 billion. Since 2005, the unemployment rate in the city has steadily decreased and reached a 13 year-low with 13.6% in June 2008.
The affordability of its property and numerous cultural attractions made Berlin a magnet for foreigner investors. But due to an influx of thousands of artistic and affluent buyers, residing in the ‘bohemian' buzz of Berlin, property prices have started to rise.
According to a Deutsche Bank report, Berlin prices are now expensive on a price/earnings basis, catching up with other major German cities.
The Berlin Property Market
Entry level - A vacant studio apartment in Wedding with central heating and a balcony, located north of central Berlin. Built in 1960, the flat is on the second floor and comprises of a living room, separate bathroom and a fitted kitchen. The studio is close to local shops and only 800 metres from Schiller Park. Price €29,950.
Mainstream - A spacious lower ground floor, one bedroom apartment. The building dates back to 1910 and was modernized in 2005 to include central heating and wood strip flooring. The property is located in a residential area of Pankow, Berlin close to Prenzlauer Berg, an area that has recently seen a significant increase in property value. Price €122,813.
Top of the range - A superb apartment house built in 1896 but restored recently in a beautiful stucco façade. Located in the heart of Charlottenburg, Berlin, the property comprises of 11 residential and one commercial unit over five floors. The property has many period pieces and features, as well as being in excellent condition throughout. Price € 1,015,709.
Rental Potential
About 58% of Germans rent the accommodation they live in, which is one of the highest proportions in the world.
Rental yields on average on apartments in Berlin are at 4.93%. A standard 120-sq. m accommodation generates a yield of around 4.8%, while a 60-sq. m unit generates higher yields at 6.02%.
Apartment prices in Germany in 2007 have risen slightly from last year at around €2,395 per sq. m. But with lower rent prices at €9.7 per sq. m, yields have expectedly dropped.
Conclusion
A truly wonderful city, Berlin has come through the darkness of its history and is now a diverse, entertaining and open place that is full of life and culture.
Search For Property In Berlin
Comments
Our comments section.
No comments added yet
Add Comment
Bookmark This Page
Tag, share or bookmark this page:
Copyright (c) 2008 TheMoveChannel. All rights reserved. Terms of Use Privacy Policy
Our International Property Portals: Bulgaria • Cyprus • Florida • France • Italy • Portugal • Spain • Turkey