Property in Berlin

Smiley101

What are your thoughts on buying property in Berlin? Is there likely to be much capitol appreciation in the future? I know that alot of germans choose to rent and that there are large fees involved in buying and maintaining property but property seems quite cheap there.

Investing in Berlin is not for capital appreciation. It is a market for a steady return on your investment that is slightly higher then a government bond or investment scheme. You are likely to get around a 5% return.
To my knowledge German property hasnt increased in value in over 15 years.
The reason its a safe bet is because Germans like to rent and you get anchor tenants who will rent for years.

dunkamania

The market may not have been suitable in the past for cap appreciation,but alot of investors are looking for cap apprec over the next few years,historically low prices,high yields,economic recovery etc

hmmm

Berlin is a risky venture, there's lots of supply with demand not matching, the economy in the area is in trouble, low birth rates and the city budget is in crisis (tax rises or services cut to come). Don't think you are simply investing in the German economy if you are investing in Berlin, you have to look at the microeconomic situation as well.

bbbbb

Absolutely look at the micro situation.

Visited Berlin a while back, but was a little unsure. Apparently the city has huge debts, and also owns alot of property. What happens to prices & rents if it decides to start selling up?

e.g. in todays indo:
"Daily tax levied on prostitutes in cash-strapped city"