Friday, 12 January 2018

What does it say about Berlin? Avison Young releases 2018 North America and Europe commercial real estate forecast.


Change and opportunity will abound in 2018

TORONTO, Jan. 11, 2018 /CNW/ - Rapid change is underway in the world's commercial real estate industry, and the dynamics are in flux as the current investment cycle enters its latter stage. The industry continues to contend with differing property fundamentals across asset types, markets and regions, with occupier behaviour, innovation and technology acting as key sources of change that are taxing the sector. The current interest-rate environment is another contributor to this change – albeit a somewhat limited factor.

These are some of the key trends noted in Avison Young's 2018 North America and Europe Commercial Real Estate Forecast.

Berlin

German capital remains on its remarkable growth path.

Investment

Demand from national and foreign investors for investment product will remain high in 2018. As major assets, such as the Sony Center and the Upper West, were sold in 2017 and availability of product is expected to decrease, investment volumes could fall short in 2018. As in most German markets, investors continued to move up the risk curve in 2017 and showed great interest in value-add product and forward-sale deals. Strong interest and high investment volumes for development land underscore this trend. Accelerated yield compression was recorded between 2015 and 2017 –
especially in the office segment, where Berlin now represents the country’s prime yield. However, prime yields are likely to have reached their low and all signs point to a gradual stabilization at this level.


Avison Young's 2018 North America and Europe Commercial Real Estate Forecast

The Full report is availabel on http://www.avisonyoung.com/en_CA/

For local support in Berlin during all phases of the investment cycle please contact us through our website berlin-portfolio.com or directly info@berlin-portfolio.com.


Share/Bookmark

Wednesday, 10 January 2018

AFIRE Global Ranking for Real Estate Investment: 1. London, 2. New York, 3. Berlin, 4. Los Angeles and 5. Frankfurt

The results of a new survey taken among the members of the Association of Foreign Investors in Real Estate (AFIRE) was recently released.
AFIRE members are among the largest international institutional real estate investors in the world and have an estimated $2 trillion or more in real estate assets under management globally. The 26th annual survey was conducted in the fourth quarter of 2017 by the James A. Graaskamp Center for Real Estate, Wisconsin School of Business. Press Release

Strong Showing for Germany; Emerging Markets Shift

For the first time since the question was first asked, two German cities are included among the top five global cities: Berlin in third place, falling from second last year, and Frankfurt, making this list for the first time.

Surce: http://www.afire.org/
The top 3 have shifted places, Los Angeles remained on 4th while Frankfurt made top 5 for the first time coming from #13 last year.
1.London (#3 last year)
2.New York (#1 last year)
3.Berlin (#2 last year)
4.Los Angeles (#4 last year)
5.Frankfurt (#13 last year)

Looking at the cost side of property investments in these cities, Berlin is still by far the best bargain as property prices still have not caught up with other major cities.

We support property search and assessment for investments in Germany berlin-portfolio.com.


Share/Bookmark

Monday, 8 January 2018

Eastern Germany Property Market Report and Investment Opportunities

The Berlin Residential Property Market has been on the forefront of the German property boom of the last 2 years and signs are pointing at a continuation of this trend. With increasing rents, purchase prices are rising as well and lately faster than the rent level. See Rent levels in the German Big 7.
As a reaction, investors are looking for alternative locations with similar prospects for the future but lower price levels. One of the obvious choices could be East Germany with a generally still lower price level. But caution is required: Some of the regions have been losing population while others have (re-)gained workplaces and inhabitants.
Research on alternative locations is complex and wrong decisions can be costly. To help your assessments for informed decision making we enclose the link to this report at the bottom of this message.

Through our Network we can provide 3 investment opportunities in this region

1. Multi-tenant home Leipzig with development potential, balconies
04179 Leipzig
asking price € 930k€
642.31 m²
33,807.72€ net rent p.a.
potential for increase
2. Multi-tenant home Leipzig with balconies
04177 Leipzig
asking price € 1,270k
581 m²
38,200.08€ net rent p.a.
potential for increase
3. Multi-tenant home in attractive location in Halle
06110 Halle
asking price € 650k
571 m²
34,619.64€ net rent p.a.
at its current potential


For more information on these properties, please contact me directly
uwe.falkenberg@falkenberg-solutions.com
_________________________________


Share/Bookmark

Friday, 5 January 2018

Berlin's residential property market has been outperforming since 2006

Press release from: Accentro GmbH

Residential real estate worth 5.64 billion Euros changed hands in Berlin in 2016. This is the upshot of the latest ACCENTRO Homeownership Report. It suggests that revenues from residential property sales in Berlin almost tripled over the past ten years, up from just 1.97 billion Euros in 2006. ACCENTRO assumes that revenues will cross the mark of six billion Euros this coming year.

The ACCENTRO Homeownership Report highlights the brisk outperformance of Berlin’s residential real estate market over the past decade. It is perhaps best illustrated by the surge in the number of completions. While just 363 new-build properties were sold in 2006, the sales total was up to 5,608 properties ten years down the road, more than 15 times as many.




Equally unrivalled by any other German metropolis are the price hikes in Berlin. Between 2006 and 2016, revenues per residential property sold went from 96,141 Euros up to around 250,215 Euros, an increase by 160.26 percent. None of the other cities that were studied showed a comparable price growth.

Declining Number of Transactions, Rising Revenues

The above-average growth in revenue per sale is apparent not just in the ten-year comparison but in the short-term track record as well. Between 2015 and 2016, the growth in revenue per sale equalled 16.73 percent, whereas the 20 biggest German cities averaged a growth rate of merely 8.03 percent. Despite the fast growth over the past years, prices in Berlin remain quite affordable when compared to price levels in other major German cities. The German capital ranks only twelfth in terms of revenue per sale, trailing mid-sized cities like Heidelberg, Mainz or Regensburg.

Lately, however, the number of condominium sales has slowed in Berlin, or so the ACCENTRO Homeownership Report suggests. Specifically, the number of transactions dropped by 7.42 percent between 2015 and 2016. ACCENTRO blames the fact not on a lull in demand, but primarily on short supply. The fact that revenues in 2016 went up by 8.07 percent year on year in spite of the declining number of transactions reflects the persistently keen demand for residential real estate in Berlin.


For local support in the fast-moving Berlin Property Market 

Please visit our website for more details on our services and how we provide a Home Base in the German Property Market not only for international investors: http://berlin-portfolio.com/index.html


Share/Bookmark

Saturday, 30 December 2017

The Berlin Property Market - Outlook 2018

We wish you a Happy, Healthy and Successfull Year 2018



The German and especially the Berlin property market experienced a record year in 2017 and left quite a few loose ends to watch out for.

Rent levels in the German Big 7

... Berlin, Munich, Stuttgart, Frankfurt am Main, Düsseldorf, Cologne and Hamburg have risen significantly although at quite different rates. This applies to all market segments but is most outstanding residential properties in Munich and Berlin. Some market participants will tell you that the limit is reached and others will say that especially in Berlin there is still plenty of scope compared to other European metropolia like Prague or Warsaw.


Construction of new Apartments and Office Space

... does not keep up with demand in the big population centers and increases the upward pressure on rent levels.

Legal Challenges in the Residential Market

Almost all legal measures undertaken by the Federal Government and Local Authorities have been somewhat successfully challenged in court. Mietpreisbremse battle taken to Germany's Federal Constitutitutional Court Another challenge is the use of Airbnb by tenants and apartment owners.

Financing Property

... might become more expensive in 2018 as the inflation rate in December was at 1.8% the highest in 5 years. The main cause was the rent development and energy cost. This could have an impact on interest rates which in turn might have a slowing effect on property price increases.



These are just a few items to keep an eye on. Stay informed about the developments: Sign-up for updates from this blog and visit our website berlin-portfolio.com.



Share/Bookmark

Wednesday, 8 November 2017

Investors favour Germany over UK for commercial real estate for first time

One in three (33 percent) commercial real estate investors have suggested that Germany is their preferred region to invest in, according to the latest BrickVest commercial property investment barometer. According to the latest market barometer of 3,500 professional real estate investors from BrickVest, the online real estate investment platform, suggests that more than a third of professional real estate investors are trending towards Germany as their preferred region to invest in. This is the first time that Germany has been chosen as the number one region to invest in, ahead of the UK which was selected by a quarter (27%).




The Barometer also revealed that UK, French, German and US investors are now less favourable towards the UK since last year.
BrickVest’s Barometer also showed that the investment objective for the majority (55 percent) of its online investors is capital growth compared to 33 percent who said income. This is a good explanation for the popularity of Berlin Real Estate despite yield compression - appreciation.

 


Share/Bookmark

Friday, 3 November 2017

There Could Be a Way To Avoid Capital Gains Tax for Apartments in Germany After 2 Years

If you have bought or are planning to buy an apartment or a house in Germany this could be very valuable information for you. The base of the subject seems very dry but the impact is potentially very significant: It is the subject of “Capital Gains Tax”.



Read more here:

https://www.linkedin.com/pulse/how-avoid-capital-gains-tax-apartments-germany-uwe-falkenberg/


Share/Bookmark