Investors eye ‘bargain-bin’ berlin

Berlin's ‘depressed' property market is apparently bursting with bargain investments...

The Berlin property market has become one of the most depressed in Europe, high unemployment, shrinking population and economic growth have cause continual erosion of prices.

Despite this, NuWire Investor recommends Berlin for property investment on the grounds that there is good money to be made from residential rentals, with only 45% of the population owning their own homes, (15% in Berlin).

A spokesperson for NuWire, explained: “The trend towards renting instead of buying makes it hard to make money from re-selling your investment property, as you are likely to be selling to other investors, but if the market and the population turns toward buying their homes, then Berlin property owners could start to make some serious gains”.

Liam Bailey of David Stanley Redfern Ltd added: "Rental rates in Berlin have been rising in almost all districts for the past year, as rental becomes more expensive, and closer to monthly mortgage rates, then people will realise it is more cost effective to buy their property.

“When that happens property prices in Berlin will start to be driven up. On top of rising rents, the government has just approved a subsidy program, allowing people to use their government subsidised pensions to buy property. When the bill is passed, it will provide another potential trigger to create a seller's market in Berlin."