A clear definition of your real estate investment project is key to its success, as you choose the appropriate property. Berlin is an affordable real estate market, offering a wide selection of opportunities.

As a first step, we recommend asking yourself the following questions:

• Are you searching for your personal dream home?
• Are you buying the apartment for your child or another member of the family?
• Do you want to rent out the apartment in the future?
• Are you hoping to earn capital gains thanks to the property’s appreciation?
• Are you trying to develop a portfolio of real estate assets?

There’s a matching property for every investment goal. For example, if you invest in a property with a high rate of rental return but limited resale potential, you will find that the long-term total return is unfavorable. A good capital investment is liquid: it can be resold easily.

Discover our offer of Berlin apartments – our portfolio expands constantly, thanks to the efforts of our Berlin-based team.

Next you should choose your investment horizon: Real estate investments are, generally, speaking, long-term investments. It is an asset class that reaches its true value over time. If you buy an apartment or building in Berlin, it’s important that the you choose the investment horizon based on several criteria, including tax considerations. Because capital gains are not taxed if the resale occurs at least ten years after purchase, we recommend that as the minimum duration of your investment.

Before buying an apartment you have to define your budget, of course. A requirement for a purchase is either a confirmation of financing or equity capital. Consider carefully beforehand what consequences a mortgage may have on your disposable income.

In principle, your personal bank can provide financing. We would be delighted to help you find financing at the most favorable conditions – our financing partners will help you select the best offer.

When defining your investment project, you should discover what level of financing will be necessary to execute your investment.

In Berlin real estate is still undervalued. Prices in Berlin are still low compared with other German and European metropolises. The average price in Berlin is around €5,000 per square meter. But you will discover that prices vary highly by district, street, and even building. That is why it’s important to have a good sense of what neighborhoods you are targeting as you make price comparisons.
Even if you are only buying Berlin real estate as an investment, we recommend selecting a good location. That way you minimize risk when you decide to sell.

Fifty percent of Berlin’s buildings were constructed between 1880 and 1920. The overwhelming majority of them have been renovated. Apartments in these buildings are investment-worthy. They are better value than new constructions in Berlin, and historic buildings won’t go out of fashion quickly.

Buying German real estate involves the following costs, as a percentage of the sales price:

• 6.0% real estate purchase tax
• ca. 1% notarial fees
• a ca. 0.5% fee for the entry into the Land Register (“Grundbuch”)

Unfamiliar with the Berlin market or in need of advice on the real estate purchase process? Expert advice is extremely important to get an objective viewpoint and to learn about several easily overlooked but important points.

ADEN IMMOBILIEN will accompany you through your entire real estate purchase process. We are experts on the Berlin real estate market and we are happy to advise you.