Lately much has been said about the crisis on the German real estate market. Indeed, reasons for concern from local market players, which gave a similar assessment was. Earlier this year, German experts of the housing market was seriously concerned about the decrease in the number of foreigners who have decided to buy local real estate.
Up with all the German real estate market was and Berlin, but then the situation has changed dramatically, and the number of foreign buyers has gradually exceeded the number of local purchasers of real estate. According to experts of the German company Ziegert, already in the first half of 2016 the number of foreign buyers of Berlin property 93 thousand people against 89,5 thousands of local customers.
Berlin somersaults with real estate buyers led to a paradoxical situation — in the German capital, housing prices increase, and in all other settlements of this country albeit slightly, but decreases.
If we talk about Berlin more specifically, the increase in housing demand from foreigners contributed to the growth in property prices in the German capital. Most notably the cost of housing increased the most prestigious and popular areas. So, in the Tiergarten district, the cost of housing increased by 85 percent, in the Charlottenburg district housing has become more expensive by 56 percent, and in the district of Friedrichshain-Kreuzberg now have to pay more for 49 percent. If this trend continues, then by 2018, local market experts predict an increase in the cost of housing by about 20 percent. There is a particularly “hot heads” that predicts a price increase of 25-30 percent, but this prediction likely won’t come true.
The growth rate of sales of the Berlin property affects the number of residents in different districts of the German capital. Thus, according to the German real estate market experts, the population of the Central district of Berlin — Mitte — since 2011, increased from 2011. This is the most significant growth among the capital’s districts, with 44 percent of new residents Mitte came from abroad. And this, in turn, says that foreign buyers in Berlin is quoted quite highly. According to the latest calculations and projections of statisticians, it can be concluded that by 2025 the population of the German capital will increase from the current level to 4 million or 500 thousand, compared to current rates. And, again, this happens at the expense of foreign buyers of German housing.
The expert on the purchase and sale of foreign real estate Olga Petrova notes that the high popularity of the Berlin real estate buyers is supported by the fact that in recent years the city has become one of the largest technology centres of the Old world. In recent years, Moscow has created more than 11 thousand new jobs, and, according to experts, Berlin has become the second most important city in Europe from the point of view of startups.
“If to speak about the near future of the real estate market of Berlin, it is quite happy and upbeat. I’m sure the demand on the Berlin housing among local buyers and expats will only increase,” — said the expert.
In fairness, I must say that in other German cities the situation is far from ideal — in a positive way stands out, except that, Bayern. But in Germany there are still many other lands, and everywhere the crisis in the real estate market. But when it will be overcome.
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