Berlin’s rental market is ideal for foreign investors
December 09, 2015 - Berlin
Berlin’s property market has taken off and the Eastern side has been gentrified and is now home to various luxury apartments, says Black Label Properties.
The average price for property in Germany’s capital city is €2,500-€3,500 per square metre, around one-third of that in Paris or London, which makes it an attractive investment option for personal enjoyment or a stable rental income for international investors.
The rental market is thriving – Berliners tend to rent rather than buy, so 10-year fixed term contracts are popular. Over 42% are owner-occupied but only 15% of Berliners are home owners, according to statistics from the Federal State Office.
Tenant cooperatives are strong, meaning renters are likely to stay in properties for longer as well as undertaking basic property maintenance.
Berlin is the first city in Germany to pioneer rental caps to stop rents rising rapidly, which provides tenants with some security. This creates a healthy rental market as they will stay in properties for longer. Unlike London, it gives Berlin a diverse cultural mix as people of varying income levels can afford to live in the centre, says Black Label Properties, Berlin.
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