Berlin’s property prices have risen in the last several years — and experts believe the acceleration will continue. According to Global Property Guide, the German hedonic price index rose by 8% during the year to August 2016 (hedonic indices attempt to compare like-for-like exactly, so are the best measure of house price trends).
Europace indicates that property values have been on the rise in Germany, especially in populous Berlin and NRW federal states, for the last several years:
Demographic trends are also favourable for a strong property market in Berlin. From a recorded headcount of 3.5 million in 2015, the city-state is forecasted to reach 5 million in 10 years. The reasons? Strong economic growth (1.7% average local GDP growth in the last five years), 1.1 million refugees, high work-related immigration, weak construction supply and low interest rates.
Given the city’s size and demand trends, real estate databases feature a high proportion of well-priced, well-located properties. You can find large apartments in affluent areas, and midsized properties in sub-districts with lower purchasing power. In the last decade, Berlin has experienced a high degree of inward migration, a trend that means that new housing development will be significant in the years to come.
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