Germany is the worlds third largest and Europe’s largest economy. It also holds the rank of being the world’s largest exporter, and has historically been the gateway between the West and the East. The German property market holds the distinction of being the most undervalued in the world. Over a 5-10 year period, Germany has the best potential for capital growth among all the developed nations. It currently possesses a robust rental exchange with higher returns on investment, has a modern, trustworthy legal and land registry organization, and its economic recovery is in full swing.

The properties within Berlin are about 30 percent lower in costs than what they would be in other cities within Germany. Small and big investors love to invest in Berlin because of the following reasons:

1. Berlin is the centre of the expanded European Union.

2. Berlin is the capital of Europe’s largest economy.

3. There are a host of organizations and the national government are headquartered there.

4. The German city with the largest stable population of 3.4 million people.

5. It is the base of operations of many multinational firms and corporations.

6. High in the ranks in modern technology operations and development.

7. Berlin is the third largest tourist destination in Europe and continues to grow at a steady rate, and benefited from big investments of up to 75 billion Euros in the last 10 years alone.
It has unprecedented public transport infrastructure, including 3 international airports and the most modern railway system in Europe to date.

9. Many consider it to be the cultural centre of Europe.

10. The cost of living is low but there still remains a high quality of life. For example, about forty percent of the city land is nothing but playgrounds and parks.

The Potentials Of The Berlin Property Market

Various large investment firms and corporations have poured in multi-billion Euro investments in Berlin’s property market. The small investors have followed suit acknowledging the tremendous potentials of the Berlin property market.

The market gives extraordinary value for money as it offers relatively low property prices, surprisingly lower than its cost of construction. The market has robust rental rates with yields among the highest in the continent, as shown by 86 percent of Berliners renting their accommodations. It also gives excellent opportunities for development investors, as construction of new buildings have been scarce over the past several years.

Berlin holds one of the most stable populations over the last 3 decades, and there has been increased interest among the residents to purchase their own homes, what with the exceptional affordability of its prices. Berlin has a very good medium to long term capital growth expectancy, and with its forecast multi-billion Euro capital investments, offers tremendous opportunities in its property market.

Many wise investors are agreeing that now is the time to invest in Berlin as the German economy is re-emerging. Even foreign nationals can purchase and hold title to property in Berlin.

Property Purchasing Process

The great thing about purchasing property in Berlin is that it is a direct transaction and a no-nonsense process. When the purchase is agreed upon by the seller and the buyer, there will be a legal notary who will draft the contract of the sale. This notary will serve as the third party intermediary of the transaction of the sale of the property. The notary will take charge of the details of the sale such as preparing the contract, checking the title and enforcing impartial provisions of the contract. The notary will also attest to the genuineness of the parties involved in the transaction. After payment has been made, the notary will then request the change of ownership through property titles.

Mortgages of properties are also available depending on the status of the property owner’s status and the property itself. However, financial and banking institutions are more careful now in processing loan applications as they avoid troublesome past experiences of heavy losses on problematic loans. Taxation meanwhile, calls for cautiousness and care. It is recommended that potential investors consult professional tax advisors first, as the German tax law is one of the most complex in the world today.

If you have thought about investing in some Berlin Flats #1 and or apartments, then visit www.berlinproperty.co.uk to find the best advice on the Berlin property market #2, we have access to one of Berlin’s largest portfolio’s of investment property.

In Germany there has been an economic increase rate of 2.5 percent that was posted in the year 2006; this has caused Germany to be at its highest level to at its highest level of confidence in about 15 years. The country of Germany is having a great time of economic revival due to its strong export market and rising housing price index, which makes it and very attractive time to invest there.

After many years of its economy being exceedingly sluggish mostly in the eastern parts and especially in Berlin there has been a solid and steady increase in the number of investors, this in turn has kept property prices pretty low. The outlook for mortgages in Germany is very encouraging by the government relaxing on its mortgaging policies, which cause many German citizens to their own homes rather than renting them.

The economy in Germany is growing at a steady rate of 2.5 percent throughout the year of 2007, house purchasing prices have been seen to increase slightly however. There are low costs and very affordable commercial properties and office spaces, there have been many British and European investors that have constantly poured money into the city of Berlin to build their businesses home offices and headquarters. After the Berlin wall had fell, the city began to race with others of Germanys advanced cities such as Munich or Frankfurt it their economic development. But a surprising occurrence has happened in Berlin, the price of property are more low in the capital than in all of the other minor cities of its country making Berlin investment property extremely attractive to investors.

The Mitte and Charlottenburg districts are identified as the best properties to invest in, where properties of high value can be sold for a very reasonable amount making them the best deals on the continent. In only a few years down the road, it is estimated that the property rates in these areas will extensively increase as the demand will increase several times over.

There is very serious interest in the growth of Berlin investment property because of the high returns investors have gotten back from the original investment. In the case of Schlosspark-Carre it is supported by a ten-year rental guarantee by certain groups of banks, which in turn has made it one of the most attractive investments across the whole continent. Along with the ten year guarantee it also has a ten-year maintenance and modernization plan, and also added onto to that is free rental management of the investment properties that are up for sale.

When speaking of the population, it is the epicentre of a structured economy, Berlin has a steady population of 3.4 million people which is about the same number of Frankfurt, Hamburg, and Munich cities combined making in the most populated area.

There were 1.8 million households with 1.8 persons living in each household at Berlin in the year of 2003. Over the past few years the numbers has increasingly raised very steadily and it is suspected by 2025, the number of households in the city should reach the 2 million mark. This spread out over eighteen years will be an increase annually of 8,400. This expanding population would start a large movement of investors investing in property at Berlin, which will cause local residence trouble in getting mortgages for their houses and would have to switch to renting a home.

The goal of many of these foreign investors will be to buy attractive properties in Berlin and the sell them to the locals for a large profit, because Berlin has all the key ingredients to have a high property market.

Advantages of the Berlin investment property

Berlin has a very liquid rental base market, unlike other investment centres across the globe. A surprising 87 percent of the population, or close to 3 million people, have opted to rent their homes instead of purchasing them for ownership. The vacancy rates of rental apartments and homes are at a very low 3.4 percent during the latter part of 2008. This gives a very wonderful opportunity to investors in purchasing ‘buy-to-let’ apartments and properties, as it assures them of consistent and profitable rental income.

Another advantage in the Berlin investment property arena is the clarity of information which the German authorities give to potential investors. Data such as property prices, rental rates, return on investment and sales, are given accurately and in a straightforward manner to the investors so they are afforded informed decisions and choices in their investments.

Learn more about the process of finding the best Berlin Apartments for sale #1. Stop by the Berlin Property Teams site where you can find all about property for sale in Berlin #2 and why many people see Berlin as the next big place to be investing in property.