By the Engel & Völkers Team
This approx. 137 square-meter penthouse is currently on sale in the central district of Berlin-Mitte, one of the most desirable residential locations in the German capital. (Image source: Engel & Völkers Berlin Mitte)
Berlin, the capital of Germany and the country’s largest city, has moved beyond its complicated past and into its strong economic future. The city is capturing the world’s attention for its art, food, music and style. Business is booming and as a result, both domestic and international investors have their eyes set on Berlin real estate.
As a divided city during the Cold War, when homeownership did not exist in the Eastern communist half and capitalism thrived in the Western half, it has taken longer than expected for real estate interest to reach current levels since the fall of the Berlin Wall. According to the latest Engel & Völkers international market report, prices for apartments, detached properties and semi-detached homes are on the rise.
“The high level of demand for prestigious old properties and modern high-end developments are causing prices for residential property to rise in practically every district,” said Sebastian Fischer, Managing Director of Engel & Völkers Berlin.
This is especially true in the central districts of Berlin, in places like Grunewald and Dhalem within the city circle known as Ringbahn.
Prices were even higher among the most sought-after properties. In both median and premium segments, strong interest residential properties in Berlin came from both national and international investors. Why is this happening? Persistently low interest rates and strong economic growth in Berlin are making real estate a popular and safe investment.
“Economically, Berlin has finally started picking up, wages have increased significantly over the last year and unemployment is at a record low,” says Fischer. “Furthermore, the city’s growing—there’s a forecast regarding population growth made by the city to 2025 and we are already above the most bullish scenario.”