• Germany's news in English
 
app_header_v3

Foreign buyers clamour for Berlin property

The Local · 18 Dec 2012, 06:56

Published: 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.

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)

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
Pegida take to Dresden streets - to march against Pegida
Pegida demonstrators. Photo: DPA

Followers of the xenophobic Pegida movement marched in two factions on Monday evening in the capital of Saxony, brandishing fierce accusations of treason against one another.

Analysis
Is it fair to call the AfD far right?
AfD leaders, from left, Georg Pazderski, Frauke Petry and Jörg Meuthen. Photo: DPA.

The AfD has been dubbed "far-right" over the past year as it has taken on a tougher stance against immigration and made gains in state elections. But at what point does one call a group far-right?

Dresden police guard Islamic buildings after mosque attack
The Dresden mosque that was hit by a homemade bomb attack on Monday. Photo: DPA.

All Islamic buildings in the capital of Saxony have been put under police protection on Tuesday after explosive devices were detonated at a mosque and a congress centre in the city.

Germany blocks WhatsApp data transfers to Facebook
Photo: DPA

German data protection authorities on Tuesday said they had blocked Facebook from collecting subscriber data from its subsidiary WhatsApp, citing privacy concerns.

Stuttgart fest pulls in twice as many boozers as Oktoberfest
Is this Oktoberfest or is this Stuttgart's Cannstatter Volksfest? Can you tell the difference? Well, it's Stuttgart. Photo: DPA.

Apparently Munich is no longer the top place to wear lederhosen and down beer one litre at a time.

The Local List
10 German films you have to watch before you die
Photo: DPA

These films are so good, not even The Cabinet of Dr. Caligari made the list.

Young man destroys 17 cars after visiting Oktoberfest

Early on Monday morning a drunk 29-year-old trashed 17 cars after staggering out of Oktoberfest into the Munich streets. It was one of several eye-popping crimes from "Wiesn" over the past few days.

VW emissions scandal
Audi tech chief leaves after reports link him to 'dieselgate'
Audi's head of technical development Stefan Knirsch stepped down on Monday. Photo: DPA.

Audi's head of technical development stepped down "with immediate effect" on Monday, the luxury carmaker announced, after German media accused him of involvement in parent company Volkswagen's "dieselgate" scandal.

Deutsche Bank shares hit lowest level in quarter century
Photo: DPA.

Shares in Deutsche Bank, Germany's biggest lender, sank to a historic low on Monday after reports at the weekend that Berlin had refused state aid for the embattled lender.

The Local List
The 10 worst German cities for students to find digs
Photo: DPA

It's the start of autumn, which means the start of the university year. But along with the excitement comes the stress of finding housing - and in some glamorous locations this can be a nightmare.

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Lifestyle
15 pics that prove Germany is absolutely enchanting in autumn
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
10 German films you have to watch before you die
Lifestyle
6 things about Munich that’ll stay with you forever
Lifestyle
10 pieces of German slang you'll never learn in class
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
National
Six reasons why Berlin is now known as 'the failed city'
National
15 tell-tale signs you’ll never quite master German
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
Culture
7 American habits that make Germans very, very uncomfortable
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Travel
Enter if you dare: Berlin's best abandoned haunts
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
6,591
jobs available
Toytown Germany
Germany's English-speaking crowd