Thinking of expanding your real estate investment portfolio beyond Dubai/UAE? Berlin might be the perfect city for you, offering exciting opportunities for Dubai expats seeking stable and potentially high-growth investments.
Dubai to Berlin: A World of Opportunity Awaits
Dubai is a fantastic city, but Berlin offers a unique charm. It's a capital unlike any other, where affordability and a vibrant lifestyle go hand-in-hand. Berlin's booming startup scene and renowned cultural scene pulsate with energy, making it a truly special place to invest.
The city has also made significant strides in infrastructure development. Getting around is a breeze thanks to their efficient transportation network, further boosting the job market, attracting new residents, and strengthening the overall economy.
Why is Berlin's Rental Market Booming?
Berlin's rental market is scorching hot, with vacancy rates hovering below 2% – one of the world's lowest! This surge is due to a combination of factors:
- Population increase
- End of rent controls
- Limited rental properties available
This fierce competition among tenants means finding an apartment can take months. The good news for investors? Rents are expected to continue rising!
Low Interest Rates Make Investing Attractive
Worried about rising borrowing costs? Fear not! Interest rates in Berlin have dropped significantly in the last 6 months. You can now secure a 10-year fixed interest rate as low as 3.16%. Even for overseas investors, rates are highly competitive, making investment much more attractive.
Where should you buy investment property in germany?
Berlin, is the short answer. It’s the market most inured to price fluctuations. It also has the lowest home ownership rates in Germany at 16%, which contributes to its red-hot rental market. Whilst nationally prices declined by around 10% in 2023 in Charlottenburg average sale prices rose in comparison to 2022 and the median asking rent for new properties rose 8.4% on the year previous. So, if you’re wondering where to buy in Berlin – Charlottenburg is a good place to start. Currently we’re selling a development in the popular and historical residential borough of Charlottenburg with prices starting at €187,500.
Berlin's Future is Bright
Savills, a leading real estate service firm, believes that residential buildings are poised to be a major player in the German economy. Investing in Berlin real estate means owning a stake in one of the world's strongest economies, offering excellent security and stability.
The recent pandemic, energy crisis, and influx of Ukrainian refugees have exacerbated Berlin's housing shortage. With fewer apartments being built than the number of new households entering the market, the rental market is poised for even more significant growth in 2024-25. Savills Germany summarises it perfectly: "Long term investors are acquiring a product with virtually no downside risk."
Invest in a Secure Future: Berlin Awaits
Berlin's real estate market presents a compelling opportunity for Dubai expats seeking a safe and potentially lucrative investment. With a thriving economy, booming rental market, and historically low interest rates, Berlin could be your dream investment destination. So, why not consider adding a slice of Berlin to your portfolio?
Exclusive Links Real Estate collaborates with specialist international property partners. Partnering with a knowledgeable and experienced broker can be your key to success. Whether you're interested in Berlin's flourishing buy-to-let market or seeking hidden gems in up-and-coming neighbourhoods, contact us to identify the best investment opportunities, and achieve your financial goals.
As Dubai’s leading real estate firm, Exclusive Links specialises in guiding Dubai expats through the intricacies of international property investment in Berlin.
This blog post is based on the blog post - Why Berlin might be the best property investment you can make right now. This is the repurposed version with permission from the owner and made modifications to fit the style and audience of our blog.
Are you looking for a name you can trust?
We harness professional and market expertise from all areas of the business and work with a transparent client centric approach.
