Real estate prices in Berlin are extremely attractive—only a quarter of the price compared with London and Paris.
A combination of factors has created a unique window of opportunity for investors in Berlin properties:
- Low residential real estate prices (€1000-2,500 per sq/m)
- High rental yields (4-8%)
- An increase in average income due to relocation of governmental ministries and headquarters of multinational corporations resulting in a high rate of positive migration -40,000 resident per year
- Limited construction of new housing units (ca. 4,000 per year) resulting in a high demand -50,000 apartments by 2015
- average increase of 8.6% in property prices throughout the city in 2011 (Data published CBRE 2011 Housing Report), and 15% in micro-areas where Inspiration Group projects are located.
The combination of high demand for residential properties, and a low supply of housing units in central areas of the city, is creating an increase in rental and real estate prices across the board; attracting large investments from international funds.