Berlin Real Estate market is another interesting issue about Berlin which we would like to share with you. Who knows... may be after exploring Berlin with us you will decide to come to Berlin and then think about staying here.
You might start to be interested in real estate issues in Berlin. And we can give you some general ideas how it works here with estate.
So, to start with we offer some basic information about the real estate market in Berlin. Let us at first clarify that all foreigners have the right to rent or to buy land, houses or flats. There is no limit set by German law.
On the other hand, please, pay attention that the properties as land, estate and other type of property do not automatically give you a right to enter or to stay in Germany.
In other words if you buy a house or a flat in Berlin you can not be sure that you will get allowance to stay in here permanently, unless you are a citizen of the European Union. But do not worry, we will cover this question later.
All deals have to be done by using a registered notary. The cost for the notary are equal and set by rules of the government.
You should know that notary services in Berlin are slow and relatively expensive. But be sure that all the work they do is very serious and then you will be the owner of the estate by the law.
Notaries in Germany are reliable. Of course, you can find tricky guys everywhere but in Germany the density of such tricky guys is lower than average in the world. The reason of such high consciousness is the law which is set by the state. And here two things come into mind-Dura Lex ed Lex as Romans said or do not trouble troubles... as modern people say.
In any case, it is good for people that notaries are not corrupted.
The capital of Germany is very big if you count the area. It is about 892 km² with 3.5 million inhabitants.
Here are the figures to compare:
Greater London with 10 million inhabitants and 1580 km².
Paris with 2 million inhabitants and 106 km².
Finally, in both cities live more person/km² than in Berlin.
Another important thing to know about real estate market in Berlin as well as German one is the fact that interest rates of credits are usually fixed for 10 or more years.
This is one of the reasons why the market does not tend to move fast in Germany.
With direct view to Berlin real estate it is important to see that the market is dominated by rented flats.
There are totally about 1,900,000 flats in the city with a share about 10 % of them = 188,000 in co-operatives. The bigger part is ruled by big rental companies, often property of Berlin.
Average size is 70 m² per flat. The spread in real-estate-prices of land is (per 2010) between 17,000 € per m² in the Western center (close to Zoo Station) up to 80 € per m² in some residential areas close to Berlin’s border.
Additionally, on general the Northern part has a lower price level compared to Southern Berlin.
As usually in Germany the market is moving more slowly compared with Anglo-Saxon countries.
The reasons are that on general Germans are more conservative in creating real estate property, standard bank credits are provided with fix interest rates of 10 or more years and the receipt of banking credits is connected with lots of conditions.
On the other hand, this is the reason why the market is strongly dominated with flats and houses to rent. Property is in the minority, but its share is growing.
Berliners started to be more interested in purchasing real estate but the generally they still like to rent flats.
If you think that Berliners do want to be responsible... for credits and maintenance of real estate... you might be right.
But the most important thing is that not all can obtain a credit from a bank.
Banks in Germany are greedy and do not want risk of having Berliners as their clients due to high unemployment rate and low income of the latter.
Please, do not think that Berliners are poor. They do not consider themselves to be poor. It is only the opinion of banks which finally plays a role.
Majority of Berliners will not purchase flats, because they hate the fuss about the case and stress of the long procedure. They are afraid to be mistaken and then pay for it- pay for unexpected costs which can be very high if you are not clever enough to foresee them.
It is better to have quiet life... but more expensive. And here you can appear with your interest and money for Berlin real estate-a flat or a beautiful house.
Sometimes flats seem to be rather inexpensive and attractive. May be it is a good deal... or may be there is something with this flat what makes it not attractive to other potential buyers.
So, if you find a good occasion it is very good but check first if it is really so good as it seems.
Here we can give you some advices and real stories which you can probably use as a hint.
Check out other useful links:
Return from Berlin Real Estate to Berlin Germany Fanclub HomePage
Return from Berlin real estate to Berlin Sightseeing
Learn more about Berlin Wall Art and see some pictures
Read about a woman in Berlin
As you will understand we cannot describe all specific circumstances and conditions regarding real estate situation .
What we can offer is a special service: send us any address in Berlin and we can inform you about the ground approximate value.
This service is free of charge without any guarantee from our side and excludes any responsibility of www.berlin-germany-fanclub.com.
Please, send your inquiry with full address filling in the form below.
Other readers can also learn the prices and the discussion points. It will be transparent. We can imagine that Berlin real estate is getting more and more interesting and attractive to foreign investors.
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