Ron Fink International Real Estate, Berlin Germany

Berlin Real Estate Investments Make Economic Sense

Purchasing prices are the most competitive in Europe: Over the past few years, after a decade of decline in Berlin property prices, current prices have stabilized and are showing renewed upward improvements. Investors have wisely concluded that real estate prices in Berlin are some of the least expensive in Europe. Prices in Berlin are below those of other major European capitals which make Berlin remarkably inexpensive. Property is available in the German capital at less than 1,000 euros/m². Tourism is up 16% and the ready availability of discount flights makes Berlin one of the most liveliest and interesting capital cities in Europe.

Investment potential: Siemens and Deutsche Bahn, which are included in the Forbes Global 2000 and the German DAX, have located their corporate headquarters in Berlin. The largest employers in Berlin are the railway company Deutsche Bahn, the hospital company Charité, the local public transport company BVG, the service provider Dussmann and the Piepenbrock Group. Daimler manufactures cars, and BMW builds motorcycles in Berlin. Bayer Schering Pharma and Berlin Chemie are major pharmaceutical companies headquartered in the city. The second most important German airline, Air Berlin and the rail company Deutsche Bahn, are all headquartered in Berlin. Universal Music and Sony Music are both headquartered in Berlin as well.

Historically only 14% of Berliners owned real estate. In the past there has never been a strong domestic market for owners of real estate because of the unique status of the previously divided city of East and West Berlin. But no longer! German unification and the tearing down of the Berlin Wall have dramatically and forever changed the landscape of the real estate market in Berlin and Germany. Now, 40% of Germans own real estate and therefore the opportunity to invest in Berlin, with confidence and success, has become more apparent than ever to the astute investor. What basically happened in Berlin was a dramatic and overdue market correction, coupled with an expanding German economy, which when added together, provides more reasons and incentives then ever in recent history, to invest with safety and confidence.

Infrastructure: With its central position in Europe, Germany is an important transportation hub. This is reflected in its dense and modern transportation networks. The extensive Autobahn freeway network ranks as the third largest in the world in total length and features no speed limits on the majority of its routes. Germany has established a modern network of high-speed trains. The InterCityExpress or ICE is the most advanced service category of the German railroad system and serves major German cities as well as destinations in neighbouring countries. The ICE trains maximum speed varies between 160 km/h and 300 km/h. Connections are offered at either 30-minute, hourly, or two-hourly intervals.

Climate: The outskirts of Berlin are covered with woodlands and numerous lakes. Summers are warm with average high temperatures of 22-25°C (mid 70s F) and lows of 12-14°C (mid 50s F). Winters are cold with average high temperatures of 4°C (upper 30s F) and lows of -2 to 0°C (upper 20s and low 30s F). Spring and autumn are generally chilly to mild. Annual precipitation is 22.4 inches (570 mm) with moderate rainfall throughout the year. Light snowfall mainly occurs from December through March, but snow cover does not usually remain for long.

Unified Germany and a strong economy: Incorporating the old East German economy with the modern West German economy required significant changes which were essential to meet the demands and requirements in the formation of the modern European Union (EU). Germany is the fifth largest economy in the world, with employment increasing and a growing economy. Germany's current GDP is the highest within the European Union and the country boasts a population of over 82 million. Germany has been a driver, innovator, and beneficiary of an ever more globalised world economy. Germany is Europe's largest exporter with $1.133 trillion exported in 2006 and produces a trade surpluss of €165 billion annually. Exports account for more than one-third of Germany's economy and Germany has become a centre for international business through innovative and world renowned corporate management, highly qualified and motivated employees, a first class education system and a modern society with includes academic achievements in research and development. Germany has again taken back its prominence in world economic affairs and Berlin is living proof of this fact as evidenced by the list of beautiful apartments displayed below. Whether it's a property for your own personal enjoyment, or an investment property, or both; take a look at my listings below and contact me to help you start the process of becoming a real estate owner in one of the most dynamic and important cities on the face of the earth...Ron Fink