Berlin Has The Fastest Rising Property Prices in the World
April 12, 2018 - Berlin
Berlin has emerged as the frothiest property market in the world, with the city engulfed by expensive highrise developments and speculative buying that threatens its traditionally low rents and hip arts scene.
London was ranked 101st, with a 2% gain, while Auckland in New Zealand, once gripped by a property frenzy, dropped to 99th with a 2.2% increase.
But attempts by the authorities in Vancouver to quell its soaring prices – including a 15% foreign buyer tax – appear to have stalled, with prices in the Canadian city jumping by 16% in 2017, the fourth fastest in the world.
Berlin’s move to the top of risers followers several years of soaring prices; the average property price has increase by more than 120% since 2004 [...]
The boom has been fuelled by cheap borrowing and a fast growing population. The city’s population has grown by about 50,000 a year over the past five years to 3.5 million. It is projected to reach 4 million by 2035.
The surge in prices has prompted warnings of a bubble waiting to burst. In February, Germany’s central bank, the Bundesbank, suggested that property in many German cities was at least 15% overpriced and could be as much as 35% overpriced in Berlin.
But to buyers from London or New York, Berlin remains cheap even after years of 10% annualised rises. Apartments in prime parts of the German capital fetch only about a third of the price of equivalent-sized properties in London.
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