Berlin holds its position as Germany's most popular destination for residential property investment at the start of 2016. That is the finding of a recent survey by consulting firm EY Real Estate, which polled 150 professional investors including insurers, fund managers and portfolio holders.
Berlin ahead of Hamburg and Frankfurt
16 per cent of the investors surveyed name Berlin as their focus market for residential property. Hamburg follows at 13 per cent and Frankfurt am Main at 12 per cent.
In retail property, the ranking differs: Hamburg leads, and Berlin shares second place with Duesseldorf and Munich. In the residential segment, Berlin remains the clear number one.
Slight decline, no change of direction
In 2015, 21 per cent of large-scale investors said they wanted to focus on Berlin. The drop to 16 per cent does not signal a retreat but rather a normalisation after years of intense interest. Other cities are catching up, but the fundamentals behind Berlin investment remain intact.
Why Berlin remains in demand
Steady population growth, a young demographic profile and prices that are moderate by European standards keep Berlin attractive. Compared to London or Paris, prices for Berlin apartments are considered affordable with solid value appreciation. Market data show consistently rising transaction volumes.
What it means for owners
Strong demand from institutional investors supports price levels and keeps the market liquid. This applies to established boroughs such as Steglitz-Zehlendorf as well as emerging locations with development potential. The verdict of 150 surveyed professionals confirms it: anyone investing in Berlin residential property is in good company.
