Insurance News Archive

Germany still performing strongly

Investment opportunities in the established property market in Berlin have recovered to show good recent results.

And with low levels of housing ownership, the potential for good rental yields in commercial or residential property remains high.

Carlo Walther, head of business development for website RightmoveOverseas, told HomesWorldwide: "The signs of growth investors have been waiting for are finally beginning to occur in Berlin.

"Property prices in Charlottenburg, Wilmersdorf and Shoneburg are experiencing small rises after an extended period of prices having declined or remained static."

The company claims that average prices per foot in the city range between £337 and £1,347 - which compares favourably to London's high of £6,734.

And with these properties bringing in rental returns of between five and ten per cent, the market could present an opportunity for an eager investor looking for an established market.

This view is shared by Mr Walther, who said: "It is unusual to have low property prices in a capital city, which is what has been attracting investors to Berlin; where prices are half of those in the surrounding cities of Munich and Frankfurt.

"The strength of the domestic rental market, coupled with low prices and higher yields than most other European cities, make Berlin an excellent, low risk investment prospect."

25 Jun 2007