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What is the state of the real estate market in Berlin?
The Berlin real estate market is very attractive today, since prices are really low compared to those applied in other European capitals and also to those applied in other German cities like Munich or Hamburg. Our market has kept rising for six years now and probably will not stop increasing, because demand is currently greater than supply. […]

Why did you set up a Franco-German real estate agency specialized in Berlin’s market?
[…] At that time (in 2008), we observed that French people who wanted to buy [in Berlin] found themselves in difficulty, as the sale process is different. […] The language is also a barrier. Therefore, we set up ADEN Immo so that buying in Berlin would be as simple as in France. Our team is bilingual which makes the dialogue easier. However, more than 50% of our customers are German. We also created the concept of real estate agency since there is practically no real estate agency in streets in Germany.

You can find the whole French article in the magazine Hebdo-BOURSE PLUS number 804, published on July 24th 201, or online with the following link: http://www.hebdobourseplus.com/hebdo-bourse-plus_la-vie-de-l-immobilier_111_804.html

More and more French people move to Berlin and “an increasing number turns to Berlin to invest in rented apartments”. At ADEN Immo, “the investors represent 60 to 70% of the French customers from now on”. Those see in Berlin low prices per square meter compared to those applied in other European cities, as well as the opportunity to make profit. “Real estate prices rose by 10% during the last year”. Moreover, although the rental yield remains low, it does not put investors off since the unpaid rents remain unusual and because finding a tenant is easy. Finally French people are also lured by the very attractive German tax law. David Nguyen maintains: “80% of ADEN Immo’s customers pay no tax at all”. Thus, this craze enables ADEN Immo to “close around fifty red, white and blue contracts every year”.  Will you be one of them?

While the “loi Alur” is controversial in France, in Berlin, the rental control of already existing leases was introduced in the 70’s. The federal government recently changed the law, which limits more owners for the new location. However Berlin continues to attract always more investors. Indeed, the estate price and the cost of living remain quite low compared to the other European cities. The unemployment rate has also fallen since 2005. Moreover “The taxation is a good reason to invest in Berlin since it rests on the value rental thanks to the writing-off of the good and a tax exemption for the profit after having the good for 10 years”. Berlin always captivates more and more people and is now the 4th European urban areas thanks to its positive migration.

The edition (N° 20594) from the 9th of april 2011 of the french newspaper Le Monde contains a special issue about the development of real estate prices in the big european cities. In difference to most of the major cities, where the prices exploded, Berlin remains affordable.

Although prices in Berlin also have risen since 2006 about 14%, having a record year in 2010 (+7,9%), the property prices are still far below the prices of other European capitals as Paris or London. Today, the prices lay between 1000 – 4000 € per m² in the most chic districts such as Mitte or Prenzlauer Berg, slightly lower in Kreuzberg and Friedrichshain.  

According to the article the Berlin housing market was underestimated for a long time and now slowly is starting to adapt to the prices of other German cities. This rising trend is also influenced by the economic boom in Berlin. More and more business companies are settling in the city, followed by a young working population. Foreign investors have also recognized the potential of Berlin and take part in the price increase.

The article cites our associate Arnaud Schott, who explains that the advantages of Berlin are the recently renovated residential buildings, attractive prices and the system of maintenance funds that allow to keep the building in good conditions. Berlin offers a lot of opportunities for those who want to invest in stone with little risk.

To obtain more information about the topic do not hesitate to contact us, we are available in our two offices in Berlin and Paris. Just call or write us a mail. You can also check our website for further information. 

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Real estate experts in Berlin and Paris

ADEN IMMOBILIEN is an international team of experts focused on real estate in the German and French capitals.

ADEN IMMOBILIEN is your reference for properties in Berlin and Paris: sales, rentals, new development projects and buildings.