We have put a short video together of some essential pre-purchase questions when buying an investment property in Berlin, Germany,these are questions to ask or relate to pre-purchase information, depending on the replies you get how the banks feel about your potential purchase this video will put you full in the picture as to the ‘real’ income, cost and potential associated with your building.
A further service is a free property appraisal, send us the rent list and expose of a property you are looking to purchase and we will come back to you within 24 hours with a confidential and free property appraisal, will your property past the investment property test? feel free to pass the link on to anyone you know looking to purchase an investment property in Berlin.
• 60 residential portfolio transactions comprising a total of 33,900 units
• Total transaction volume: approx. €1.99 billion
• More than half of the number of all units purchased by foreign investors
In the first half of 2010 the German market for residential portfolios saw 60 residential packages comprising a total of just below 33,900 units change hands. This marks a slight fall compared to the second half of 2009 when 74 portfolios totalling 34,400 units were transacted. The total volume traded therefore declined marginally from approx. € 2.1 billion in H2 2009 to approx. €2.0 billion in the first six months of 2010.
”In the first half of 2010 the market for residential portfolios was characterised by two trends: the portfolios sold were slightly larger and foreign investor activity increased significantly”, reports Matthias Pink, researcher of Savills Germany. Savills recorded nine transactions comprising in excess of 1,000 units each. In 2009 just eleven transactions of this scale took place. Five of the extensive portfolios transacted so far in 2010 were purchased by foreign investors whereas in the previous year this was the case with two transactions only. In the first six months of 2010 foreign investors purchased approx. 18,500 units representing slightly more than half of the total number of units sold.
The data shows the market has continued to widen in terms of quality of the properties. “On the one hand closed-end funds purchased high-quality stock or project developments in prospering metropolitan areas, on the other hand we saw the return of opportunistic investments”, Benjamin Poddig, Associate Director Corporate Finance – Valuation and responsible for the valuation of residential property at Savills, describes the market situation of the past months. This is also reflected in purchase prices as various transactions took place both in the range between €250/sqm and €500/sqm and the segment of €2,500/sqm and above. A similar situation prevails in terms of multipliers ranging from the seven-fold of the annual net rental income to in excess of the 20-fold.
In the second half of the year the market situation is expected to continue its shift towards the opportunistic sector. Whilst a surge of distressed sales continues to be unlikely the pressure of creditor banks on owners of distressed portfolios will be constantly increasing. Investment activity in the core sector is anticipated to match its level of the past twelve months. The investors’ pressure to buy remains high but transactions are particularly limited by the lack of product. The total transaction volume Savills predicts is likely to outstrip its 2009 result in 2010 of approx. €3.4 billion.
From the incredible and innovative creators of the extremely successful Lux 11, a new star is born: The Weinmeister. Equally as original but entirely incomparable, The Weinmeister will soon be referred to as Berlin’s “Golden Cage,” its façade plated and luminescent. The newest addition to Mitte’s ever-increasing luxury market will be the area’s finest jewel yet. The extraordinarily daring design can be described as Brutal Living/Luxury Punk (emphasis on luxury). A visual and tactile experience, one really has to see it to believe it. Keeping consistent with Lux 11’s dedication to cater towards the business-leisure traveller, The Weinmeister is a particularly intimate space with an extreme emphasis on privacy and authenticity.
The hotel’s 88 rooms start at 30sqm each, a quite sizeable homage to the importance and excess of space in Berlin. But to be sure, there is nothing subtle about the Weinmeister, or the leaders behind its development, Tom Tänzer and Elmo Hagendorf. “Hate it or Love it,” they say, but to be honest, one really can’t help loving it.
Finally, Steve Wonder returns to Germany, on 07.13.2010 at the Zitadelle in Spandau.
One of the largest music – icons of our time, the legendary STEVIE WONDER is back on tour, having closed out as the final act at Glastonbury this year for the 40th anniversary event, The Tour is the sequel to his last, sensational and sold-out ‘A Wonder Summer Night Tour’ in 2008, with incredible reviews, the 25 times Grammy awards winner is sure to please his Berlin audience on Tuesday evening.
The Zitadelle is also host to further international acts throughout the remainder of 2010 including, Toto, Jethro Tull and Queens of the Stone Age to pick out just a few of the headline acts on various dates over the summer.
