New concept: Larger apartments to be converted into smaller units
Zabel Property AG will undertake the sales of Metropol Park in Berlin, an ensemble of historic buildings and modern annexes in Berlin-Mitte. Metropol Park is centrally located, bordering Köllnischer Park and Märkisches Museum. The residential development comprises more than 130 condominiums of between 30 and 330 square meters. “We are seeing extremely high demand for smaller and mid-sized apartments, from both our domestic and international buyers. In response, we have fine-tuned the concept for Metropol Park. Larger residential units are being converted to create a number of smaller apartments,” said Thomas Zabel, CEO of Zabel Property AG. The ensemble of buildings at Metropol Park is being developed by Home Center Management GmbH.
By dividing the larger apartments into smaller units, an additional 18 condominiums are being created, ranging in size from 72 to 165 square meters. “The division of larger apartments into smaller units creates new opportunities for buyers to purchase premium residences in the most attractive architectural ensemble in Berlin-Mitte. We expect that the condominiums at Metropol Park will sell briskly, both to domestic and international buyers,” said Zabel. A majority of the company’s international buyers hail from the international middle-class, and typically invest EUR 250,000 to EUR 700.000 when buying an apartment in Berlin.
“Metropol Park, with its singular location, imposing Entrée, ceiling heights of up to 3.8 meters − in one loft this even reaches seven meters − combined with a stunning facade and countless historic features, is truly unique in Berlin“, said Kai Massoumi, Head of Sales at Home Center Management.
Buyers of the apartments in the section of Metropol Park to which heritage protection status applies can potentially take advantage of special tax write-off provisions. Special depreciation for historic buildings is governed by Germany’s income tax code, Section 7i EstG/10f ESTG. “Heritage building provisions are the last remaining tax shelter that buyers can take advantage of in the real estate sector,” explained Kai Massoumi. In the year of completion, and in each of the following seven years, nine percent of modernization costs can be written-off per year. For an additional four years, the write-off represents seven percent per year.
The 25 apartments in the brick-built, heritage protected building from 1930/31 will range between 30 to 165 square meters in size. The apartments in the modern annexes are between 70 and 180 square meters, and the four penthouses and lofts offer 180 and 330 square meters of living space, respectively.