Berlin Property Portal

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Welcome

Welcome to the Berlin Property Portal your "One Stop" English Language gateway to all things property related in Berlin. Non German speakers with a little English may also find this site of interest. We are not a "cult" of any sort even if at times our Love for all things Berlin does tend towards the obsessive. This site will be of interest if:

At the Berlin Property Portal we aim to provide a wide ranging high quality information resource for anyone interested in the Berlin Property Scene. We are a group of private investors who have been consistently struck by the efficiency, practicality, financial security and range of property investments available in Berlin. Buy in Berlin based on true and clear information rather than some of the complex reports of income which can overestimate the potential net-net returns (i.e. what you really earn for your money). See our Renting The Facts page for a detailed explanation of the “Rental Market”, the ”The Key Words/Terms Used” and a breakdown of “Owner Costs”. The information contained in the Berlin Property Portal is not definitive but it is based on our own direct experiences. Berlin has, for us, been just a "Great place to do Business".

The "Raison d'etre" of the Berlin Property Portal is:

Attraction of Berlin.

What was the main attraction of Berlin that has made us concentrate our activities there? Probably the initial attraction of Berlin is a combination of the historically good value within the German property market. Property prices have stagnated since the early 90's, with the exception of some of the premium western cities, Munich, Hamburg etc which have shown small single digit % increases. All this has occurred while the property market around Europe (Old and New) has seen a property boom with price rises of up to 280% in many countries over the same timeframe. Combine this with the unique circumstances that have left Berlin under priced even within the sluggish German market and you see the attraction of investing in Berlin.

The relocation of the Federal Government to Berlin has restored Berlin as the centre of the Largest Economy in Europe. Berlin's location as the most eastern of the great cities of Europe places it to the forefront of the recent expansion of Europe to the east. A Germany that has stuttered economically and confidence wise in recent years is still fundamentally a wealthy and prosperous country.

The overriding impression when one visits Berlin is the relaxed pace of life and the great feeling of space when working, at rest and at play. Berlin now must seem like a throwback to the relaxed cultural centers of London and Paris before their metamorphism into chaotic, overcrowded, hyper-driven mega cities. Berlin is quite an antidote to the organised chaos of these Mega Cities and now finds itself as one of the great creative centers. The New York Times recently commented that "Berlin is like New York City in the 1980s, rents are cheap, graffiti is everywhere and the air crackles with a creativity that comes only from a city in transition."

Period Apartment Buildings ( Altbau ).

The wonderful Architectural Heritage of Berlin is evident from the Gründerzeit buildings of the late 19th century through to the functionality of New Objectivity in the 1920s, the totalitarian architectural style of the mid-war years to the architecture of the post-war era where the nature of both political systems is reflected in the development of the east and west of the divided city. Berlin's oldest residential stock typically includes:Multi Dwelling Period Apartment Buildings, known in Berlin as an ALTBAU, which due to their grand entrances and high ceilings make for the most desirable properties when they have been properly maintained. Quality of maintenance of these old buildings tended to be better in the West than in the East of the divided city. Prices for complete Altbeau buildings typically range from 1000 Euro/m2 to 2000 Euro/m2 depending on location and condition. Individual apartments sell for a little more. The breakdown margin achievable by dividing complete buildings into single units is small and when one considers the high purchase costs, up to 13%, not a very profitable exercise. For further information on pricing of Altbau type properties visit our Property Analysis page.

Post war Urban Developments in Berlin differed markedly between the re-development of East Berlin and West Berlin. In East Berlin there was an effort to create integration of residential, commercial and administrative space The East German government wished to show that developments should serve as a symbol of a new attitude towards the working classes. Key East Berlin developments of this period were centred in the Frankfurter Allee/Karl-Marx Allee (Originally Stalinallee) to the east of Alexanderplatz, the city centre area was still at this time mostly in ruin. The East German plan for the development of Berlin targeted buildings of "High Social Significance" with a concentration on creating both utilitarian and aesthetically pleasing buildings. Later on in this period prefabricated construction came to dominate the building practices. Initially these tended to be long straight characterless blocks in a "corridor" style. This however, quickly led to the development of distinctive "Wedding Cake Style" blocks set back a little and surrounded by commercial and leisure facilities within wide pedestrian zones. Following on from this the area around Alexanderplatz was developed including the construction of the Television Tower designed by Dieter and Franke. This was surrounded by social, commercial and retail developments. Redevelopment in West Berlin suffered through the conflicting interests of the occupying powers (British, French and American) and the western government. Each of the occupying powers had their own take on how West Berlin should be rebuilt. Due to the absence of any formal National Building Law development in West Berlin did not follow any specific reconstruction plan. In contrast to East Berlin's grand corridors of wide "Allee's" and powerful public spaces the West's interest was in catering to the middle and upper classes of the relatively affluent residents of West Berlin. Without a strong mandate the West Berlin planners of this era failed to take a "big picture" view which led to a piecemeal approach to its re-development.

New Build Developments.

Post re-unification Developments in Berlin and New Build. Following re-unification there has been a dramatic investment in both infrastructure and property in Berlin. A lot of the property development in Berlin was financed based on projections, in terms of returns and values, achieved at that time in the major cities of the old West Germany, Frankfurt, Munich etc. However, without any economic foundation these projections/expectations proved hugely over optimistic. After an initial spurt values plummeted, Banks and Investors lost their shirts and the investment opportunity was born! Only now over 17 years later is there a sign that Berlin has reached economic stability, it stall has a massive debt, and the population brain drain has stopped with early signs of reversal. New developments in Berlin have mirrored the quality/cost of construction of elsewhere in Germany.

Faced with the lowest priced properties of any major city in Europe the figures don't really add up and its questionable if the construction of new properties is either viable or more importantly profitable. New build developments in areas of Prenzlaurberg for example can sell at a premium of over 3000 Euro/m2 while at the Sony Centre in Mitte rates of 4500 Euro/m2 are currently being quoted. While there are certainly some buyers for this type of development these prices do not reflect what is viable for most people, investors and residents, throughout Berlin. Investors looking for any decent return will not be attracted to these developments when net yields of less than 3% are typically achieved. This has a positive side for investors as while Berlin has an almost unlimited space for development the gap between new build prices and existing stock will limit the increase in the property stock while this price difference persists. It is still possible to buy slightly on-loved complete properties in reasonable areas for less than 800 Euro/m2, again slightly more for individual units. The availability is however reducing as more and more areas gain value through affluence spread and gentrification (CAFÉ CULTURE). For more specific information on typical prices in the regions of Berlin and an analysis of available properties visit our Property Analysis page.