By autumn it will be 19 years since one of the most significant events in the history of
Then came the reality.
While much of the latter is an issue for sociological study, the economic aspect is of relevance to property investors, who may have wondered if and when the city, now the capital of a nation once more, would start to see any kind of property boom. Why go there, it might be asked, rather than affluent
Discussing this, the manager of German estate agency Top-Immobilien, Michael Schmidt, said that the next few years will see developments that investors will enjoy. He noted that in
He commented: “That means that there is more and more demand. At the moment there is no reason for tenants to buy a flat, for example, because rents are cheap. When they buy the property, they have to pay the interest on repayments – and at the moment, rents are cheaper.”
However, this will change, he stated: “But from last year to this year, we saw increases to rents of ten per cent. Next year it will be ten per cent again, and again – and then they will decide to buy.”
A lot of potential
Therefore landlords may have two exciting possibilities – firstly that of rising rental income and secondly the chance of being able to sell on the property at a profit as buyer demand rises and consequently pushes up house prices.
Mr Schmidt said there was “a lot of potential” for price increases, noting that not only was Berlin property cheaper than places like Munich, but it is also in the middle of a vast wave of investment which has put €80 billion (£61 billion) into the city so far and has more to go.