The property market in Berlin remains steady and volume is holding up well when compared to other major European Cities.

The key drivers for investing in the Berlin property market in August 2009 in our opinion remain

1. Berlin Property prices per square meter are hugely competitive when compared with the rest of Europe.
2. The German economy is likely to emerge from the Global downturn ahead of much of Europe.
3. Mortgages for Berlin Property are available at very competitive rates when compared to the UK in particular
4. A culture of renting property in Berlin creates reliable and long term tenants
5. Demand for Berlin property is growing, pressure on the supply side will inevitable lead to rising prices
6. Buy to Let Berlin properties can offer good and reliable yields of often between 4 – 6% which compares favourably with other non property investments.
7. The Berlin property market also benefits from a robust and regulated legal system.

The Berlin property market is the home of attractive purchase prices when compared to other major cities Property can be purchased in the German capital at less than 1,000 Euros per square meter which is significantly lower that for example London and Paris where property prices per square meter can be 6 times higher at around 6,000 Euros per square meter.

In the ten years from 1994 - 2004 Berlin property prices dropped by 30% but in recent years prices of Berlin property have bottomed out and the German Statistical Office reported a 7.5% increase in 2008. As consequence investors from all Europe have started buying property in Berlin, many buying apartments which are sold with reliable tenants already in place.

The local authorities in Berlin have been promoting very heavily Berlin as a major tourist destination, this investment in marketing Berlin has led to 16% increase (2007) in Tourism which has led many investors to compare Berlin property prices very favourably to those of Cites such as Prague, Warsaw and Budapest. There is no doubt that the rise of Berlin as a “City Break” destination plus the arrival of the low cost airlines has had a positive effect on property prices in Berlin.

The Capital growth potential of Property in Berlin

Historically the strong rental culture that exist in Berlin has led to a very slow domestic sales market with only 14% of Berlin Properties being owner occupied, clearly this is mainly influenced by the politics of the post war era. In Germany the owner occupied rate stands at closer to 40% which bodes well for the demand for property in Berlin as the local economy improves and local attitudes to property ownership, especially amongst the younger generation, along with outside investors fuels demand for property in Berlin. Many investors believe that the Berlin property market and the prices in it are an anomaly which will inevitably correct itself and bring about high capital gains for early adaptors. Berlin Property offers solid investment returns The typical yield from a fully tenanted apartment block, and many single units, can from 4% to 10% with mortgage rates around 4-5%.

Euro mortgage rates for buying property in Berlin

Mortgages for buying a property in Berlin are straightforward to obtain with most lenders prepared to advance up to 60% LTV. The mortgage market for property in Berlin is very competitive which means rates as low as 4% are typical with many fixed rate also available. Mortgages for buying a property in Berlin are subject to status Mortgages for purchasing a property in Berlin- rates from approx 4.0% in Euros – August 2009. If you are purchasing a property in Berlin, German Mortgages are available for UK & Irish based Employed Residents (who appear on that Country's Electoral Roll) or non-German Nationals living and working in Germany for House Purchase - other purposes on a case by case basis.

The type of German Mortgage is Repayment Mortgage only Minimum: € 40,000, Maximum € 1,000,000, but must not exceed 60% of the purchase price.

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