Find out what’s happening in the property investment arena both in the UK and internationally
British buyers rush to Berlin to enjoy best FX rate in 8 years
August 10, 2015Article by Charlotte Ashton
With the pound currently enjoying a sustained high against the euro, the time is ripe for British buyers looking to invest in property overseas. Earlier this year, the pound hit its highest level against the euro since November 2007 and experts predict it could go even higher.
As ever with currency fluctuations, the current rate is the result of a combination of complex underlying factors, but two key ones are the Greek crisis, which impacted heavily on the value of the euro, and the prospect of interest rate rises in the UK, which has served to give the pound a boost. The result was that sterling hit €1.43 in July – its highest rate for eight years.
Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, comments,
“UK property investors are enjoying an excellent time to buy overseas right now, thanks to the strength of the pound against the euro. We’ve seen a big rise in demand for properties in leading European cities and Berlin has emerged as one of the most sought-after locations. In fact, in a recent survey of Property Frontiers clients, 90% said that they were interested in buy-to-let property investments in the German capital.”
Berlin’s growing population and buoyant economy have created an inviting atmosphere for property investors. Demand for rental property there is strong, with a culture of renting prevalent in German cities.
Stadtpark Steglitz is an excellent example of the stylish, contemporary apartments that UK investors are seeking out in Berlin. From studios for single professionals to three bedroom, family-sized apartments, the development offers modern living in elegant surroundings, in one of the city’s most verdant and attractive districts. Prices start from €109,600 for a studio apartment, with gross yields up to 5.6%.
Property Frontiers’ Ray Withers continues,
“As property investment specialists we like to stay ahead of the curve and so have been searching for the perfect Berlin buy-to-let property for some time. Stadtpark Steglitz is just that. The location is ideal – it’s a wealthy area with strong demand for rental properties, within easy reach of the nearby S-Bahn station and extensive shopping area of Schlossstraße. It’s not just a great place for professionals to live in terms of work location, but also an attractive area in which families can enjoy their leisure time.”
Demand for apartments at Stadtpark Steglitz is expected to spiral throughout H2 2015, as the pound continues to enjoy its strength against the euro. UK buyers looking to be part of the Berlin heyday are keen to act soon in order to take advantage of the favourable rate, before world events conspire to swing the FX rate back the other way!