Charlottenburg-Wilmersdorf could be Berlin’s next big property hotspot, according to one agent.
The area is a cultural hub that offers visitors a disparate and impressive collection of attractions, from the Berlin Institute of Technology and Berlin University of the Arts to Charlottenburg Palace and Deutsche Opera Berlin, home of the Berlin State Ballet.
Black Label Properties Berlin highlights the hotpot, where a new development has been launched. Reconstructed after the war, the residentially and commercially zoned complex consists of 52 different units, of which 46 are residential, six commercial, and eight are penthouses. The project includes an extensive renovation, which will drastically increase the value of, and available uses for, the property.
“The renovation project enjoys the fortunate combination of location, convenience, infrastructure and personal input,” says the agency. “Benefitting from the strong German economy and quickly-increasing real estate prices, the project is ideally-suited for investors. Rental rates in Germany have soared over the past five years, with Berlin as the recent frontrunner for the country’s success. As such, the area is a prime candidate for property investments.”
Indeed, Germany’s capital has been attracted increasing attention from investors overseas, thanks to the city’s booming population. It was expected to swell by 250,000 people between 2011 and 2030. Now, city planners believe that number will be added by 2019. In 2014 alone, the population grew by 44,700.
As a result, housing is sorely needed. CBRE’s Global living: A city by city guide reports that average values for apartment buildings have risen by 21 per cent in a single year. Rents have also shot up, by 5.7 per cent over the past year (compared with 3.6 per cent nationally), prompting officials to introduce new rental caps.
Ray Withers, CEO of specialist property investment company Property Frontiers, adds: “We’re seeing some rapid shifts in Berlin’s property market after almost two decades of very little activity. It’s an exciting time to be part of the market there.”