According to Knight Frank’s Prime International Ranking Index, Berlin ranks thirteenth in the world for price growth in the premium condominium sector. As excess demand remains at a high level, this trend is set to continue throughout 2017 and beyond.
You won’t find a room 13 in most hotels, and in airplanes row 12 is followed by row 14. But for investors in Berlin’s premium condominium sector, 13 is definitely a lucky number. After all, Knight Frank’s latest Wealth Report states that the price per square meter for premium condominiums in the city has risen by 8.7 percent over the last year – the thirteenth fastest rate of growth in the world. Thus, investors in Germany’s capital are enjoying stronger capital gains than investors in Paris, New York, London and Munich. What’s more, the report highlights high level of transparency in the Berlin market, which gives a significant boost to the security of real estate investments in the City on the Spree.
One major reason for Berlin’s ongoing popularity is its adaptability. Year in, year out, Berlin adds an average of 48,700 new inhabitants – many of them young people arriving from abroad. Unsurprisingly, given the fact that the cost of living is low in international comparison, while the city’s cultural and leisure attractions leave no wish unfulfilled. Above all, Berlin-Mitte, Kreuzberg and Friedrichshain are the most fashionable districts. Berlin also has plenty to offer in terms of career opportunities. With 40,000 new companies founded each year, the City on the Spree has firmly established itself as the most important ideas factory for start-ups. However, there are simply not enough suitable apartments for the excellently qualified and highly skilled international workers looking to make a new home in Berlin, and this sustained strong demand has naturally caused prices to skyrocket.
In harmony with the new working approaches and mentalities pioneered by the city’s growing community of start-ups, requirements for innovative housing concepts are also being developed. For international business travelers, whose work is often project-based, there are a growing number of temporary living solutions. Well equipped and fully-furnished premium micro-apartments in the best city locations don’t only offer optimal access to transport infrastructure, they also often boast amenities such as fitness rooms, co-working spaces and English-speaking concierge services. A number of exciting new developments are underway, specifically targeted at satisfying this demand. For instance, a 17-storey residential tower with 266 micro-apartments is being developed on Lehrter Straße in Berlin-Mitte. Close to the reconstructed Berlin Palace, the new Luisenpark development does not just offer spacious multi-room apartments, it also includes compact student apartments of up to 42 sqm. These and other similar developments offer future-proofed investments and attractive value appreciation potentials. After all, renowned real estate experts forecast that property prices in Germany’s capital will continue to develop positively for years to come.