Key Trends For 2016 In The Berlin Property Market

Berlin is a magnet for British investors and wealthy international clients

Black Label Property brings innovative services for foreign customers on the market

Berlin has blossomed into one of the leading startup cities in Europe. The scene is colourful, international, well networked and creates new jobs. It is a city of extremes – for example, in the real estate industry, rich international clients shell out top dollar for luxury real estate, but you can still find moderate rents and purchase prices in comparison to other overseas hotspots. Berlin’s International brokerage firm Black Label Properties (BLI) have noticed some key new trends from overseas buyers.

English customers, mostly from London, are increasingly looking for older flats for sale. Small dilapidated two-room apartments in the districts of Wedding, Moabit, Reinickendorf and Neukölln are wanted for redevelopment, ” says Andreas Müller, Branch Manager Berlin of Black Label properties, on the targeted property requests from England. The background is the advantageous exchange rate, as well as a better quality of life in the federal capital. Attractive aspects like natural living, central location, good infrastructure and a favorable cost of living are crucial.

London freelancers, entrepreneurs, retirees, artists increasingly moving to Berlin

Most UK callers have been inspired by so-called property shows like “how to build a house” or “Homes Under the Hammer” to stretch out their feelers to Berlin. In these TV shows viewers get profitable advice about foreign investments. The Berlin real estate market has become a hot tip financially. 

The clients is made up mainly of freelancers, entrepreneurs, artists, retirees and young adults from wealthy backgrounds. “Some are simply tired of London and are looking for a new interesting and at the same time stable life in the metropolis. Others are retired from 50plus or professional business owners who want to renovate the apartments and then profitably sell on. It attracts a return of 3.5-4.8 per cent, which can no longer be achieved with London or UK real estate “, Andreas Müller explains the different interests of its British customers. For more information on this development can also be found in this “Daily Telegraph”article.

Black Label properties helps foreign investors in financing and refurbishment of apartments

Through a refurbishment which takes about three months, about 20 percent of income can be earned at resale, depending on the location of the apartment. Also subsequent rentals bring a monthly increase. Through the different kind of British pension system British pensioners have free capital, which many want to profitably invest in stocks or real estate. The real estate market in London has long been exhausted, the growth rates in Berlin, however, are interesting and stable. BLI helps both in funding and the mediation of specialized restoration companies.

Black Label property are following these trends and will be offering a new service from the end of the year.  International customers will be able to purchase a fully furnished apartment in a downtown location from 80,000 euros for students rentals. This will bring a guaranteed rental income of 20 years plus a gross margin of more than four percent. Advance reservations for international clients are possible. “We see Berlin as a constantly changing place, very exciting and thrilling. The strong economy and very low mortgage interest rates mean more and more people will be able to realise their dream of owning property in Berlin.