Rental Returns
Of course, investing in Berlin real estate can be quite rewarding. Again, as a capital city and one of Europe's top tier cities, Berlin's rental returns are relatively high, usually in the range of 3-5%. Prices in the center of Berlin are basically 4000-7000 euros per square meter. Smaller apartments (large openings, one-bedroom, two-bedroom) also have the highest rental returns, and well-furnished apartments can usually be rented for as little as 20-25 euros per month per meter. But compared to the 1% point plus in the north, Berlin's rental returns are still good.
House price appreciation
If there's one city in Germany that has seen the highest rate of house price increase in recent years, it's Berlin, with an average of 10 percent per year.
And the main reason for the increase in house prices is attributed to the following:
First, Berlin has become the Silicon Valley of Europe, a large number of Internet companies influx, but also drive the capital market. Global famous Internet Google, Facebook, Amazon.com, Tencent, Alibaba, etc. have all set up branches in Berlin. Top European and global investment firms are also looking for good projects and making venture capital investments in Berlin. As a result, the development of the Internet industry has also attracted top talents from all over the world to Berlin. The constant influx of high-level talent has inevitably led to a booming real estate market in the local market.
Secondly, Berlin's rapid development started in just a few years. The city's real estate market has been in a low price range compared to other major cities in Germany, such as Munich, Frankfurt and Hamburg. Munich, Frankfurt, Hamburg, and even Dusseldorf have much higher real estate prices than Berlin. Berlin, as the capital of Germany and the Internet center of Europe, naturally became a price depression in the eyes of investors. The previous price difference with other cities is bound to shrink gradually.
Europeans, Russians and Jews who know Berlin better saw this early on. That's why it's now common to see property investors from these places on the market.
Eurozone economy rebounds as euro assets appreciate
The economic situation in the eurozone showed a positive recovery in the second quarter of 2017, with significant improvements in the economies of major countries such as France, Germany, Italy and Spain. Germany's manufacturing sector grew at the fastest rate in more than six years, and the service sector also remained strong. France and Italy's service sector growth also maintained a strong momentum. A series of reports show that the growth of business activity in the euro area will drive the economy on the road to sustained recovery.
Eurostat recently released the eurozone's second-quarter economic data show that the eurozone's second-quarter GDP grew by 2.2% year-on-year, up 0.6% from a year earlier. At the same time, the EU28 GDP growth of 2.8% year-on-year, up 0.6% from a year earlier, better than the previous quarter. So far, the eurozone economy has expanded for 17 consecutive quarters.
The rapid economic growth in the eurozone has also contributed to the significant appreciation of the euro. For international property investors, the real estate they invest in will also bring them huge gains in the exchange rate. At the beginning of this year, the yuan against the euro is still maintained at the level of 7.2, and in the last two months the exchange rate climbed all the way to 7.8, and even a few days almost close to 8.0. less than half a year, the exchange rate on the profit to be more than 10 percent.
Comfortable life
Maybe see here you have to say, I casually Beijing and Shanghai a set of houses, a year are earning a few times, investment in Berlin's real estate is only 10%, what is there to earn? The next thing I said is that you can't have these in Beijing and Shanghai.
Healthy air
Money is important, but if you don't have a healthy body, what's the point of having money? Blue skies are a luxury in this country, while hazy days are the norm. Berlin's greening rate ranks first in Germany. When looking at houses in Berlin, many customers will ask whether the neighborhood has a large garden. To the Germans, parks have long been part of the city. Every 5 minutes walk there is a park with green trees, lawns, flowers, lakes and rivers that anyone can enter, sit or run in for free. In Berlin, there are no park entrance fees, no "no trampling" signs. In Berlin, there are no smoggy days, just healthy air and a lot of green.
Quality and free education
There is no such thing as a school district in Germany, because the distribution of educational resources within a city is very even. There are no major differences in schools. Berlin is home to a number of quality universities, including Humboldt University, Technische Universit?t Berlin, Freie Universit?t Berlin, Berlin University of the Arts, Charlotten Medical School, ESMT Business School and many more. Education in Germany is free from kindergarten to university, for both locals and foreigners. If you think back to your home country, how many parents buy a house for the school district? How many weekends or summer vacations do your children spend in expensive cram schools? Don't you feel pain when you see your child studying at night before the midterm and the college entrance exams? In Germany, you don't need to worry about this. There are no school districts here, and everyone receives an equal education. The weekend, summer and winter vacations, more social practice, sports activities, field trips, overseas study tours and other activities.
Sound medical care
Germany is a country with a very advanced medical care program. Medical practitioners, equipment, medicines, etc. are superior, Germany, a wide range of independent practitioners, from the fundamental solution to the problem of "difficult to see the doctor", in Germany to see the doctor does not need to queue up as in the country, queuing up to register, queuing up to wait for the doctor, queuing up to pay, queuing up to pick up the medicine, do not need to the doctor to plug the red packet, not at all. It makes you feel very relaxed and convenient. When you see a doctor in Germany, all the forms are filled out by nurses, and at most you need to sign. Germany's health insurance system is relatively perfect, can fairly cover everyone, patients do not have any difference due to place of residence, identity, status, ethnicity, occupation, age, gender, medical and pharmaceutical are separate, health insurance reimbursement system is very perfect, but also fundamentally solved the problem of "expensive medical care". In addition, Germany is good at tolerance of foreign cultures, learning, including our Chinese medicine, acupuncture, massage, including yin and yang taijitu, German doctors will be, understand, are learning.