Germany and Berlin

As the largest economic power and with the largest population in Europe after Russia, Germany plays a key role in the economy, politics and culture of the continent. A consistently high level of income, a stable and healthy economy and the current low unemployment rate allow an optimistic prognosis for the future development of the German and especially Berlin real estate market.

About half of the population of Germany lives in their own house or apartment, the other half lives in a rented space; in cities a considerably higher percentage of the population is renting, e.g. 86% of the apartments in Berlin are rented. 50% of the Germans live in flat or house with more than 90 m².

With permanently low inflation rates and favorable loan terms of less than 5% APR Germany defied mostly the effects of the global economic crisis.

Due to the attractiveness of Berlin as a city and European metropolis and the excellent starting conditions for start-ups and creatives, more and more young and educated people from all over the world established themselves in the capital in recent years, which resulted in yearly price increases in real estate of 10% and more.

From rental income one can achieve returns of up to 10% of the purchase price. Due to the increasing number of households with a slightly declining overall population number a further increase in demand for rental and ownership housing is to be expected. This phenomenon is reflected in rising rents and sales prices in both the established neighborhoods of medium to good location and the adjacent, emerging neighborhoods.

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Berlin Real Estate Institute

Desiree Leinenbach
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10997 Berlin

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