• Germany edition
 
Foreign buyers clamour for Berlin property
Photo: DPA

Foreign buyers clamour for Berlin property

Published: 18 Dec 2012 06:56 GMT+01:00
Updated: 18 Dec 2012 06:56 GMT+01:00

Booming areas of the capital, such as Prenzlauer Berg, Kreuzberg and Mitte, have seen a dramatic rise in foreign buyers snapping up property. At property firm Accentro alone, one third of customers are now from overseas.

Almost all paid in cash said company head Jacopo Mingazzini. Some even bought without viewing a property, he added.

High-end property dealer Engel&Volkers also reported a rise in Greek and Italian clients, Tetzlaff-Immobilien said it had a lot of Spanish buyers and popular online house-finding site Immobilienscout24 also said it had found a notable increase in Greek business.

Foreign buyers were turning to Germany for several reasons, one of the main ones being that they wanted to put their money somewhere safe, away from the beleaguered economies of their home countries. The German capital's hip reputation was an added bonus.

“They are paying for safety and are often willing to accept high prices for it,” said Thomas Beyerle from property investment firm IVG. He added that Germany, alongside Switzerland, was “an international anchor.”

Rising rents were not even a deterrent for buyers, as increasing prices are being seen by investors as a sign that they would likely be able to sell off a property at a profit.

Plus, flats costing between €1,400 and €1,500 per square metre were still up for grabs in Berlin, “something that in other large metropolises is unthinkable,” said Mingazzini. He added that the city was “very affordable compared to other places in Europe and even within Germany.”

“People buying in Berlin are buying with the foresight of the value going up,” said Einar Skjerven from the Skjerven Group. In Munich or Hamburg, this was unlikely, he added.

And it was not just sought-after, sprawling loft apartments in trendier parts of the city that were in high demand from foreigners. Family homes in the former West Berlin were also popular.

DPA/The Local/jcw

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

08:41 December 18, 2012 by Berlin fuer alles
'Rising rents were not even a deterrent for buyers,'

Of course they are not a deterrent for buyers. They are an incentive. Who wrote this garbage? Berlin is still cheap compared to other major cities. Even without industry like Munich or Stuttgart Berlin is a good investment due to Dr. Merkyl and Mr. Hyde spreading financial disease around the Eurozone. I just hope this does not eventually create a property bubble like the currency bubble experienced with the Swiss Franc.

Some parts of Berlin are cheap with good reason and it may be very dangerous to invest blindly in Berlin. I bought a flat in Charlottenburg a decade ago and whilst it is not the trendy Mitte or Prenzlauerberg I am more than happy I did. Prices cannot continue to rise for ever so I would invest in Berlin with caution.
10:45 December 18, 2012 by smart2012
all of this is driven by speculation....

nothing to do with normal taxpayers...

and the downside is that Berlin people struggle with too high rent (exactly the same in Munich, a rent of a shity flat in Shwabing is 1700 Euros per month. This is what i pay), and normal workers have to live in shity Perlach
16:32 December 18, 2012 by catjones
smart2012...like you, I take my personal situation and extrapolate it to the entire country.
19:35 December 18, 2012 by gorongoza
Who wouldn`t invest in housing in Germany if he/she has the money?

With people streaming in from East and South every available house will quickly find an occupant.

Watch out - it will not be too long before all that we earn go to pay rent, and nothing else.
19:45 December 18, 2012 by Berlin fuer alles
Now I have heard it all. Blame the foreigners on rising rent. Maybe blame Dr. Merkyl and Mr. Hyde hey gorgongoza.
Today's headlines
Schweinsteiger is new Germany captain: Löw
Photo: DPA

Schweinsteiger is new Germany captain: Löw

Bastian Schweinsteiger will replace fellow Bayern Munich player Philipp Lahm as captain of the German national football team, head trainer Joachim Löw said on Tuesday. READ  

Munich minister resigns in 'model car scandal'
Christine Haderthauer at her resignation press conference in Munich on Monday. Photo: DPA

Munich minister resigns in 'model car scandal'

Christine Haderthauer, head of the Bavarian state chancery, resigned “with immediate effect” on Monday evening over the so-called “model car scandal” in which her company sold scale models built by a man convicted of three sexual murders. READ  

Russia 'severed' from Europe: President Gauck
President Gauck stands shoulder to shoulder with President Komorowski of Poland in Gdansk on Monday. Photo: DPA

Russia 'severed' from Europe: President Gauck

Russia has "effectively severed its partnership" with Europe and wants to establish a new order, German President Joachim Gauck said on Monday. READ  

National Uber ban is revenge of the taxis
Taxis are a powerful trade lobby in Germany. Photo: DPA

National Uber ban is revenge of the taxis

The Frankfurt regional court has imposed a temporary nationwide ban on chauffeur car service Uber, saying that it must pay a €250,000 fine if passengers continue to book rides through its app. READ  

Sex party 'desecrates' Bavarian royal spa
The facade of the Bad Reichenhall Royal Spa Hotel.

Sex party 'desecrates' Bavarian royal spa

The Bavarian finance ministry has demanded a report from the company running a publicly-owned spa in the town of Bad Reichenhall after they rented the property out for a fetish party. READ  

Merkel details Iraq arms shipment to MPs
Angela Merkel addressing the Bundestag on Monday as her ministers look on. Photo: DPA

Merkel details Iraq arms shipment to MPs

UPDATE: Chancellor Angela Merkel addressed the Bundestag on Monday to explain her government's decision to send weapons to Iraqi Kurds fighting terrorist group Isis. READ  

Town in shock as tax worker shot dead
DPA

Town in shock as tax worker shot dead

A tax office worker in the Schleswig-Holstein town of Rendsburg died in hospital after being shot on Monday morning. READ  

Olympic visions compete in Berlin and Hamburg
Berlin and Hamburg mayors Klaus Wowereit and Olaf Scholz on Monday. Photos: DPA

Olympic visions compete in Berlin and Hamburg

Germany's capital and its gateway to the North Sea each released details of their Olympic bids on Monday as the race for the 2024 or 2028 summer games nominations picks up momentum. READ  

Vacationer killed by Baltic Sea bacteria
Photo: DPA

Vacationer killed by Baltic Sea bacteria

Six people were infected with a bacteria from the Caribbean which has made itself at home in the popular German vacation destination. One of them is now in a coma. READ  

UN applauds Germany's help to refugees
DPA

UN applauds Germany's help to refugees

UNHCR Commissioner Antonio Guterres is lauding Germany's role in accommodating the influx of refugees in Europe, while pointing at the imbalance of effort within the EU. The federal government has pledged to do more. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Photo: Shutterstock
Gallery
Ten of the oddest things found by German border control
Photo: Gerkan, Marg and Partners/Tegel Projekt GmbH/J. Mayer
Berlin
How will Berlin look in five years' time?
Photo: DPA
Culture
Sprechen Sie Deutsch? 10 reasons why you should
Photo: DPA
Gallery
The best of Berlin's mayor Klaus Wowereit in 14 pictures
Photo: DPA
Politics
Germany sends burgers and sausages to Kurds
Photo: Matthias Kock
National
Tribes, ties and a movie: A German's Afghan life
Photo: DPA
Gallery
10 things to do before summer in Germany is really over
Photo: DPA
Gallery
The mysteries of Berlin's abandoned theme park
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,408
jobs available
Toytown Germany
Germany's English-speaking crowd