10 Reasons Why Berlin Is The City Investor Choose To Buy Property
The German Property Market
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. Berlin is the centre of the expanded European Union.
2. Berlin is the capital of Europe’s largest economy.
3. The national government and a host of organizations are headquartered here.
4. The German city with the largest stable population of 3.4 million people.
5. Multinational corporations and firms have their base operations in Berlin.
6. High in the ranks in modern technology operations and development.
7. Berlin is the third largest tourist destination in Europe and continues to grow at a steady rate, and benefited from big investments of up to 75 billion Euros in the last 10 years alone.
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
Many large investment corporations and firms have literally pours billions of Euros into Berlin’s property market. The smaller investors out there have been the potential and have decided to follow suit.
The market gives extraordinary value for money as it offers relatively low property prices, surprisingly lower than its cost of construction. The market has robust rental rates with yields among the highest in the continent, as shown by 86 percent of Berliners renting their accommodations. It also gives excellent opportunities for development investors, as construction of new buildings have been scarce over the past several 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.
There are many wise investors that are in agreement that the German economy is on the rise, making now the best time to invest in real estate. Even foreign nationals are able to invest in and hold title to some Berlin properties.
The Process Of Purchasing Property
The great thing about purchasing property in Berlin is that it is a direct transaction and a no-nonsense process. When the purchase is agreed upon by the seller and the buyer, there will be a legal notary who will draft the contract of the sale. This notary will serve as the third party intermediary of the transaction of the sale of the property. The notary will take charge of the details of the sale such as preparing the contract, checking the title and enforcing impartial provisions of the contract. The notary will also attest to the genuineness of the parties involved in the transaction. After payment has been made, the notary will then request the change of ownership through property titles.
Mortgages of properties are also available depending on the status of the property owner’s status and the property itself. However, financial and banking institutions are more careful now in processing loan applications as they avoid troublesome past experiences of heavy losses on problematic loans. Taxation meanwhile, calls for cautiousness and care. It is recommended that potential investors consult professional tax advisors first, as the German tax law is one of the most complex in the world today.
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