• Germany's news in English

Foreign buyers clamour for Berlin property

The Local · 18 Dec 2012, 06:56

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

Facebook Twitter Google+ reddit

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.

Story continues below…

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)

Facebook Twitter Google+ reddit

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
Isis suspect charged with scouting Berlin attack sites
Photo: DPA

German federal prosecutors said Thursday they had brought charges against a 19-year-old Syrian man accused of having scouted targets in Berlin for a potential attack by the Isis terror group.

Berlin Holocaust memorial could not be built now: creator
The Memorial to the Murdered Jews of Europe, in Berlin. Photo: DPA.

The architect of the Berlin Holocaust memorial has said that, if he tried to build the monument again today, it would not be possible due to rising xenophobia and anti-Semitism in Germany and the United States.

'Liberal' Germany stopping Europe's 'slide into barbarism'
Ian Kershaw. Photo: DPA

Europe is not slipping into the same dark tunnel of hate and nationalism that it did in the 1930s - mainly thanks to Germany - one of the continent's leading historians has said.

Eurowings strike to hit 40,000 passengers
Travelers impacted by the strike on Thursday wait at Cologne Bonn airport. Photo: DPA.

The day-long strike by a Eurowings cabin crew union is expected to impact some 40,000 passengers on Thursday as hundreds of flights have been cancelled.

Deutsche Bank reports surprise quarter billion profit
Photo: DPA

Troubled German lender Deutsche Bank reported Thursday a surprise €256-million profit in the third quarter, compared with a loss of more than six billion in the same period last year.

US 'warned Merkel' against Chinese takeover of tech firm
Aixtron HQ. Photo: DPA

The German government withdrew its approval for a Chinese firm to purchase Aixtron, which makes semiconductor equipment, after the US secret services raised security concerns, a German media report said Wednesday.

Long-vanished German car brand joins electric race
Photo: DPA

Cars bearing the stamp of once-defunct manufacturer Borgward will once again roll off an assembly line in north Germany from 2018, the firm said Wednesday.

Eurowings cabin crew union to strike all day Thursday
Photo: DPA.

UPDATE: A union representing cabin crews on Lufthansa's budget airline Eurowings has announced that strikes will last all day Thursday as ongoing contract negotiations continue to falter.

Hesse hopes to set example by building Iraqi orphanages
Refugee children in northern Iraq. Photo: DPA

The wealthy central German state of Hesse has set aside €1 million to build a school, family homes and an orphanage in northern Iraq, in an effort to help refugees there.

The Local List
10 German clichés that foreigners get very wrong
David Hasselhoff. Photo: DPA

Whether it be efficiency, humourlessness or a love of a certain Baywatch star, there are many cliches stuck in the heads of foreigners about Germany. But how true are they?

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd