More to German property than Berlin, experts advise
Released on: October 8, 2007, 11:18 am
Press Release Author: Jim watson
Industry: Real Estate
Press Release Summary: Those looking to invest in property in Germany have been frequently advised to look to Berlin, a capital city starting to rediscover itself following its division during the cold war years and subsequent economic malaise as the subsidies vanished and the post-reunification recession took its toll.
Press Release Body: Those looking to invest in property in Germany have been frequently advised to look to Berlin, a capital city starting to rediscover itself following its division during the cold war years and subsequent economic malaise as the subsidies vanished and the post-reunification recession took its toll. Today, it is proclaimed, the city is starting to flourish, with new buildings, attractive housing developments and a cultural regeneration.
Yet while Berlin is reinventing itself, not all are convinced it is the best place for German property investors to go. Simon Tweddle, chief analyst for Property Secrets, is one expert who has begged to differ, suggesting Hamburg and Munich are the better prospects.
He said: \"I think there are probably better opportunities if you look outside of Berlin. If you look towards somewhere like Hamburg and Munich, they are actually economically stronger. When the German property market does pick up, those are likely to be the cities that will grow first, not Berlin.\"
Mr Tweddle said this was due to the fact that, while the German economy and property market have been sluggish in recent years, meaning anyone looking to sell a property quickly would take a loss, the two cities nonetheless have better employment rates and more available property.
This downbeat view of Berlin contrasts with the views of many. For example, last month Berlin Capital Investments talked of good times ahead, with director Fergal Creed saying: \"There is strong demand for both sales and rented accommodation, particularly at the luxury end of the market\".
Simon Tweddle, by contrast, has argued that Berlin\'s popularity is down to the way agents are singing its praises rather than any really special prospects. On the question of the merits of Munich and Hamburg, however, there may be rather less dispute.
In February this year, a survey of European property experts jointly published by the Urban Land Institute and PricewaterhouseCoopers found both cities ranked ahead of Berlin in a league table of the best European cities to invest, with Munich fourth overall and Hamburg ninth.
Both cities have attractive elements which may interest investors, with Hamburg having redeveloped its large harbour area and Munich being famous for the Oktoberfest. In the latter case, the city is also historically wealthy, being based in Bavaria, the richest Lander in Germany.
Those considering investment in Germany should be in it for the long term, Simon Tweddle advocates, due to the low growth at present. But if the economy improves at the rate some optimists believe it soon will, investors may have some very interesting choices to make about which cities they look to buy property in.
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