There is no doubt about it - Berlin is more popular than any other city in Europe. For years now, creative people from across the globe have been flocking to the capital by the River Spree. It is hardly surprising, then, that Berlin's property market has also been in the fast lane for some time. Be it the establishment of new companies, growth in tourism or increasing population - the capital is breaking every German record standing. But Berlin has now also entered the big leagues in European terms. International real estate experts have long seen the federal capital as an innovative hotspot for media and technology. This is reflected in a recent study called "Emerging Trends in Real Estate Europe 2016" by auditing and consultancy firm PwC and non-profit organization, the Urban Land Institute (ULI). The study surveyed 550 international market experts on trends and development prospects in the European property market. The result: Berlin held on to its pole position as the real estate market with the most promising investment and development opportunities.
The result was not entirely unexpected. Last year, Berlin was able to oust Munich from the top spot as the most attractive city. The reason behind this is that prices in Munich's property market are too high for many real estate investors and it is now virtually impossible to achieve any significant growth in value. The situation in the German capital could not be more different. Many real estate experts continue to value Berlin particularly on account of its young population, its growing importance as a technology location and its huge potential for project development of premium properties. Respondents agree that in terms of long-term diverse investment opportunities, Berlin has more to offer than any other location. Based on this, they attest that Berlin can continue to look forward to a clear, upwards development trend.
Second place in the European cities ranking went to another Germany city: Hamburg, followed by Dublin, Madrid and Copenhagen. Unlike last year, Munich also made it into the Top 10.
Overall, European real estate market experts are extremely optimistic about the future of the industry. Real estate investments in higher quality dwellings continue to be seen among investors and buyers as a safe bet and this is unlikely to change any time soon. Given the persistently low interest rates and the growing volatility of the capital markets, this year, real estate investments continue to offer more attractive returns than the alternatives, like equities or bonds.