Good news for Berlin Investors
The days are over when apartments in the central areas such as Kreuzberg, Friedrichshain and Schöneberg (just a few examples) were sold for prices per sqm comparable with those for a garage in London or Paris.For foreign first time investors and even for those who have been working on the local market for a time, the current situation is confusing. How to compare the areas? Where's hot? Where not? How to judge if an offer is really good or totally overpriced? Only two or three years ago it was very easy to take a decision. There was just one criterion: The price. Buying for EUR 1.000/sqm or even less meant that nothing could go wrong. The prices could only increase. No matter if one bought in Neukölln or in Charlottenburg.It is a fact that prices have been raising continously for years now. The farewell party from a „whatever you do – no risk market“ was celebrated in 2013. In 2014 the Berlin real estate market grew up. This does not mean that there are no more opportunities for excellent business. ... Berlin is just starting over!The challenge:The real challenge now is not just to find cheap opportunities for a quick re-sale. The real challenge is the professionalism. Business in Berlin became much more complex in the last few years. Investors need a very clear, profound and global view in order to realize good commercial operations.For small investors this also means to say goodbye to weekend real estate shopping tours. There are still a few agencies organizing this kind of trips in and to Berlin. But would you like to spend thousands of Euros in a booze cruise?A good and safe investment needs information, professional support, documentation and a feeling for the market. And in the right moment, a quick and firm decision.Builders or investors groups whose intention is to buy and to develop real estate in Berlin should take into consideration increasing idle times and delays caused by the local building authorities and urban planning. Target group specific products, goal-oriented architecture, a smart material planning and the participation of a local project control are decisive points.