Find out what’s happening in the property investment arena both in the UK and internationally
Accessing Berlin’s property market just got a whole lot easier
November 5, 2015Article by Charlotte Ashton
Berlin’s property market is fast becoming one of Europe’s most enticing markets when it comes to residential real estate. An uprising of youthful new talent in the German capital has led to Berlin rivalling London as the start-up hub of Europe and has led to a steep rise in demand for contemporary rental accommodation.
Buy-to-let investors have been quick to respond. Ray Withers, CEO of specialist property investment company Property Frontiers, which is offering Berlin buy-to-let properties for investment at Stadtpark Steglitz, comments,
“Berlin’s property market has seen some fundamental changes in recent years and the latest of those is a marked upturn in demand from the city’s young tech entrepreneurs. Office space is being snapped up and commercial rents are rising and we’re now seeing the impact of that spread over into the residential real estate sector.”
Berlin’s affordable prices and educated youth have created the perfect environment for tech companies to flourish. According to Colliers International, some 36% of space leased in H1 2015 was to tech businesses. From startups to established market players, it seems everyone wants to be a part of Berlin’s bright future.
One Berlin-based startup, Nestpick, is seeking to revolutionise the way the property rental industry works. Originally set up for students and expats who needed to rent a home overseas, the site has quickly caught the attention of a whole generation of renters by removing in-person viewing from the property rental process. Nestpick has just announced $11 million of new funding, to transfer the entire rental process online.
Making it easy
While Nestpick is making renting easier for tenants, Property Frontiers is making buying easier for buy-to-let investors. At Stadtpark Steglitz, homes range from stylish studios to generously proportioned three bedroom apartments, with a variety of modern, open plan designs available. Most apartments feature their own balcony or terrace and the development will also include an attractive courtyard garden with dedicated play and recreation areas.
Located in an affluent part of south west Berlin, Stadtpark Steglitz is well connected, with the nearest S-Bahn railway station just 10 minutes away, making it ideal for young professionals looking for easy access to the city centre.
Prices start from as little as €153,670, with gross yields up to 5.6% realistically expected. One particularly attractive feature in investors’ eyes is the ability to avoid capital gains tax if the property is held for more than ten years, making Berlin the ideal city for a long-term real estate investment in a thriving market.