Sitemap

Berlin Property Price Growth Tops Global List

More...

Richard Grenell: Serbia-Kosovo Agreement Results From Trump’s Different Brand Of Diplomacy

President Aleksandar Vučić of Serbia and Prime...

Biden Accepts Democratic Party Nomination

Former U.S. Vice President Joe Biden has...

Donald Trump’s Acceptance Speech

The final day of the Republican National...

Montenegro

Montenegro Election: First Projections Point To A Tight Race

In Montenegro, the ruling DPS was nearly...

News

Agreement On Normalisation Of Economic Relations Between Belgrade And Pristina Signed

President of Serbia Aleksandar Vucic and Prime Minister of the Provisional Institutions of Kosovo Avdullah Hoti signed an Agreement...

Montenegro Election: First Projections Point To A Tight Race

In Montenegro, the ruling DPS was nearly neck-and-neck with its main rivals, according to early and incomplete projections of...

EU Awards One Million EUR In Grants For COVID Recovery In Tourism Sector

“#EUzaTebe – For Cultural Heritage and Tourism” project has awarded one million euros for 120 projects aimed at supporting...

UNDP And Embassy Of Slovakia Present Feasibility Study On Use Of Thermosolar Energy

The Mayor of Belgrade, Zoran Radojičić, met with the Ambassador of Slovakia to Serbia, H.E. Fedor Rosocha and Resident...

The EU Does Not Recognize Belarus Election Results

Members of the European Council held a video conference, at which they discussed the situation after the presidential elections...

Berlin property prices skyrocketed in 2017, outpacing all other major centres, according to a new report while three other German cities also ranked in the global top 10

Berlin property prices increased more than any other major city through 2017, a study from property consultancy Knight Frank reported.

The “Global Residential Cities Index” found average property prices in the German capital increased by 20.5 per cent, 2 percentage points more than Izmir, Turkey, which ranked second.

Three other German cities ranked in the top 10. Hamburg had the seventh-highest housing price increase at 14.1 per cent, followed by Munich in eighth (13.8 per cent) and Frankfurt in 10th (13.4 per cent).

The study found that the average growth of housing prices worldwide has dropped from 7 per cent overall in 2016 to 4.5 per cent in 2017. Twelve cities, the study said, had a registered price growth above 20 per cent in 2016, whereas Berlin was the only city to have a price growth above 20 per cent in 2017.

The study attributed the large increase in Berlin to “strong population growth, a stable economy, record low unemployment and robust interest from overseas investors are together propelling prices higher.”

In Berlin, where real estate was affordable for much of the past two decades, average property prices have increased by 120 per cent since 2004. On top of that, Bundesbank, Germany’s central bank, suggested in February that real estate prices in German cities may be overvalued by 15-30 per cent and as much as 35 per cent in Berlin.

But the relatively low property prices are still attracting foreign investment as real estate analysts continue to cite Berlin as one of Europe’s top real estate hotspots. At the beginning of March, American billionaire Warren Buffet signed a deal with Berlin’s Rubina Real Estate to buy an upscale residential property in Berlin.

Many foreign investors are also buying up residential buildings in Berlin and renting out spaces to tourists, which has squeezed the housing market in the German capital.

Lawmakers are making efforts to ease housing costs in the city. In 2016, the ruling Social Democrats (SPD) enacted a law — called Zweckentfremdungsverbotsgesetz — that fined landlords up to €100,000 for illegally renting out their property for short-term stays.

Germany’s Senate Department for Urban Development and Housing reported in January that the law returned 8,000 apartments to the rental market in Berlin in 2017. Additionally, more than €2.6 million in fines have been imposed, according to public broadcaster RBB.

But housing demand in Berlin is expected to rise as the city’s population, currently at 3.5 million, increases — it is expected to grow by 10.3 per cent by 2030 and could reach 4 million by 2035.

Related Articles

Will Serbia feel the ramifications of the rupturing of global...

When Germany And China Sneeze…

The automotive sector in Serbia could become a litmus test for assessing whether the country will continue to be included in European production chains,...

NATIONAL DAY: 3 OCTOBER (Unity Day)

Embassy Of The Federal Republic Of Germany

H.E. Mr. Thomas SCHIEB Ambassador Extraordinary and Plenipotentiary Address: Neznanog junaka 1A, Belgrade Tel: +381 11 3064 300 E-mail: info@belg.diplo.de Website: www.belgrad.diplo.de Social:

Angela Merkel

Chancellor’s Scientific Background Could Save Germany

Today, we face the global outbreak of a disease that has the potential to catalyze what the historian Eva Schlotheuber terms a “pandemic of...

H.E. Thomas SCHIEB, Ambassador of Germany

Germany’s Resilience and Ability To Cope With The Unprecedented Crisis

The Federal Government and the governments of the Länder, who are the competent authorities for the implementation of all measures of infection control, have...

Ralf Naeve, Director of the German School of Belgrade; Christoph Czettl, Chairman of the Board of the German School of Belgrade

From Pre-school to Post-diploma

Since 1864, when the German School in Belgrade was first established, many parents have entrusted their children to the hands of its staff and...

Architecture in Germany

Ecological Optimisation of Buildings

Rationality and precision define German building culture. Yet with the success of ecological architecture it is also developing new emotionality and lightness In Germany, the...

Anniversary of the Elysee Treaty and the Aachen Treaty

The Embassy of Germany and Embassy of France in Serbia marked the 57th anniversary of the Elysee Treaty and the first anniversary of the...

German Serbian Chamber of Commerce Members Meeting

The traditional German Serbian Chamber of Commerce (AHK) Members Dinner brought together hundreds of members of the German-Serbian Chamber of Commerce at Belgrade’s Crowne...