Germany is the worlds third largest and Europe's largest economy. It also holds the rank of being the world's largest exporter, and has historically been the gateway between the West and the East. The German property market holds the distinction of being the most undervalued in the world. Over a 5-10 year period, Germany has the best potential for capital growth among all the developed nations. It currently possesses a robust rental exchange with higher returns on investment, has a modern, trustworthy legal and land registry organization, and its economic recovery is in full swing.
Property prices in Berlin are mostly below the construction costs of property developments, and on average, are 30 percent lower than other German cities. Both big and small investors are very keen on Berlin for the following reasons:
1. The centre of the expanded European Union is Berlin.
2. Berlin is the capital of Europe's largest economy.
3. There are a host of organizations and the national government are headquartered there.
4. It has a stable population of 3.4 million people which is said to be the largest German city.
5. Many multinational corporations and firms use Berlin as their base for operations.
6. High in the ranks in modern technology operations and development.
7. Within the last ten years alone, Berlin, being the third largest tourist destination in Europe, has benefited from investments of up to 75 billion Euros.
8. There are three international airports and a very modern railway system. In fact, the railway system in Berlin is the most modern system in all of Europe.
9. It is the cultural centre of Europe.
10. Berlin has a low cost of living and yet has a high quality of life. One example is the fact that 40 percent of the city's area is devoted to parks and playgrounds.
The Property Market In Berlin has great potential for the future
There has been multi-billion Euro's poured into the property market in Berlin by large corporations and investment firms. Now the small investors are following suit and see the major potential that is there.
The low property values give an extraordinary value for the money, and it is surprisingly lower than the cost of the construction. This is a market with robust rental rates with yield highest in the continent. In fact, about 86 percent of Berliners rent their housing. There are many excellent opportunities for developers as there have not been that many new buildings brought in over the past few years.
In addition, it should also be noted that Berlin has one of the most stable populations within the last 3 decades. There has also been an interest shown in purchasing homes, as the homes are now extremely affordable. There is a very good medium to long-term capital growth that is expected and it is forecasted to be multi-billion Euro capital investments.
Even wise investors are in agreement that with the re-emerging German economy, now is the best time to invest in Berlin. Foreign nationals can also invest and hold title to Berlin properties.
Property Purchasing Process
The great thing about buying property in Berlin is that it is a no-nonsense process. Once there is a purchase that is agreed upon, a notary will draft with contract of sale. The notary will also act as a third party intermediary who will also check the title of the property and prepare the contract of sale, along with various other works. It is also the notary who has to make sure that the transacting parties are genuine. After all payments have been made, the change of ownership of property is completed
There are also mortgages available for the properties but it can be a little harder to get a loan as financial institutions are being much more careful. They want to make sure that they are avoiding problematic loans. In addition, taxation is a call for care so it is advised that potential investors speak with a tax advisor first so that they fully understand German law.
Author Resource:
Learn more about the process of finding the best Berlin Property #1 . Stop by the Berlin Property Video snapshot on property for sale in Berlin #2 and why many people see Berlin as the new capital of investment property.
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