In its recent analysis, the independent rating agency Scope, identified the 20 most important office locations in Europe. The findings are clear: Berlin is the European leader for professional office investments.
According to Scope, the City on the Spree offers much more attractive prospects than Paris, London, Madrid or Amsterdam. Berlin’s top ranking is also an important indicator for the development of the city’s housing market and shows that the acquisition of a high-quality condominium is a promising investment for private investors.
Scope’s assessment is based on rental price developments in the selected European locations, taking into account various economic aspects, which results in a detailed forecast for the next few years. The size and liquidity of the respective markets are of prime importance. However, factors such as the number of planned construction projects and the region’s economic growth also play a role. Another important aspect in which Berlin has performed particularly well is the development of the labor market. In recent years, the German capital has seen office workplaces grow at an average of four percent per year. By way of comparison: In Munich, the number of employees rose by only three percent in the same period. London brings up the rear – a clear consequence of the imminent Brexit.
There is a strong correlation between the positive growth of Berlin’s labor market and rising demand for high-quality housing. As the population in the City on the Spree is becoming more and more international, apartments in modern high-rise residential buildings have become an ever more attractive opportunity for private investors. International tenants, in particular, know this form of living from their home countries and appreciate the numerous amenities on offer, which can include an English-language concierge service or shared fitness and coworking spaces. Alongside Frankfurt, Berlin is a pioneer in Germany in this segment. In the next five years, almost 30 high-rise apartment buildings will be built in the German capital.