Berlin is the largest city in Germany with a population of 3.4 million people – and it is growing steadily. The long-awaited boom has reached Berlin. The German Institute for Economic Research expects growth of 2.4% for Berlin in 2007. (2006: 1.9%) According to the CIC economic climate index, sentiment in the city's economy is so good that the number of jobs will increase for many years to come.
Berlin as advanced city, is consolidating its position as a productive and innovative center. Investors are being offered an interesting basis for their investments, including well-regarded business facilities, subsidies specifically for innovative industries and a leading position in research and development in Germany. The city is considered to be the prime location for innovative industries, attracting more and more high-tech companies every year.
Berlin has an additional clear advantage in its very good transport infrastructure and its international connections that are being constantly improved, the wide range of training courses available at universities and a highly qualified workforce. The wide array of cultural activities are also an outstanding feature of the Berlin scene.
Berlin is the largest market for residential investment properties in Germany, and the tendency is rising. The time required to market properties has decreased to two-three months on account of brisk demand, particularly from foreign investors. We anticipate a further surge in investment revenue.
Burgeoning property sales and building permits indicate that there is a trend reversal underway in the construction sector. Nevertheless, the supply is likely to grow increasingly scare: Population figures are rising along with the trend in favor of single households and increased floor space, boosting the demand in particular for inner-city apartments. As a result of higher rents in the wake of this development, purchase price per m² are also rising. Asset management, the ideal administration of residential portfolios, is therefore gaining significance.
Residential areas of choice traditionally are Charlottenburg, Wilmersdorf, the Mitte district and Prenzlauer Berg. New districts located on former industrial grounds or extraordinary residential concepts like the townhouses in Friedrichswerder (Mitte) are also becoming increasingly appealing.
