10 Reasons Why Berlin Is The City Investor Choose To Buy Property
Property Market In Berlin Germany
Germany is Europe’s largest economy and the third largest in the world. It is also known as the largest exporter and the world and is known as the gateway between the East and the West. Also, property in Germany is known for being well undervalued which means that Germany has the best potential for some major growth over all developed nations. With a trustworthy legal and land registry organization, the 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. It is the capital of Europe’s largest economy.
3. There are a host of organizations and the national government are headquartered there.
4. There is a stable population of roughly 3.4 million people.
5. It is the base of operations of many multinational firms and corporations.
6. One of the most sought after cities in terms of modern technology and information technology development and operations.
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.
It has unprecedented public transport infrastructure, including 3 international airports and the most modern railway system in Europe to date.
9. It is considered to be 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
Various large investment firms and corporations have poured in multi-billion Euro investments in Berlin’s property market. The small investors have followed suit acknowledging the tremendous potentials of the Berlin property market.
The low property prices and the low cost of construction give the money extraordinary value. The rental rates in Berlin are one of the highest in the entire continent as about 86 percent of people there are renting their housing. This means there is a lot of potential for development investors. There have not been many new buildings over the past several years so new construction could not be timed any better.
Berlin holds one of the most stable populations over the last 3 decades, and there has been increased interest among the residents to purchase their own homes, what with the exceptional affordability of its prices. Berlin has a very good medium to long term capital growth expectancy, and with its forecast multi-billion Euro capital investments, offers tremendous opportunities in its property market.
Many wise investors are agreeing that now is the time to invest in Berlin as the German economy is re-emerging. Even foreign nationals can purchase and hold title to property in Berlin.
Purchasing Property in Berlin
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.
There are also mortgages available for the properties but it can be a little harder to get a loan as financial institutions are being much more careful. They want to make sure that they are avoiding problematic loans. In addition, taxation is a call for care so it is advised that potential investors speak with a tax advisor first so that they fully understand German law.
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