Berlin Residential Real Estate Market 2009 Outlook

A survey of 118 cities in Germany has seen the average rent level in Berlin at 5.58 Euro per sqm per month net rent. This takes Berlin to rank No. 55 with Munich in the lead with an average net rent of 11.36 as shown in a study published by the association of the Berlin-Brandenburg housing corporations. Even in small cities like Jena (7.06), Greifswald (6.49) or Lübeck (6.07) the average rent is currently higher than in Berlin. Yet another indicator for the development potential of the Berlin residential market. With the current price level for Investment Property at early last year’s level and growing numbers of pressured sales due to “De-Leveraging” where investors sell properties to generate fresh cash the yields have improved significantly. Recently some big investors in the Berlin market like ORCO Germany have sold properties between 2 – 20 % below their book values. The take-up by the market is relatively slow as most banks require up to 40 % equity to match their lending. “Equity is king” and those who have it can cherry-pick. Any relaxation in this area will depend on the development of the financial crisis and any forecasts on this a currently very vague. In order to make the right decision on property investments reliable pre-acquisition information and investigation is vital.To then ensure a long term successfull outcome, performance targets, measurement concepts and concepts for performance improvement have to be implemented based on the information gathered during the pre-acquisition process. Uwe Falkenberg – source QA

ELLE Decor(e)

I don’t like the word “decoration”. I prefer the bauhaus’ mantra “form follows function”.

So I’ve not been “decorating” this weekend, but rather looking for those things you need in a flat, possibly in good materials, with good ergonomics and a good shape and color. Some of them brand new, some IKEA, some old and second-hand (I don’t like the word “vintage” either…).

Still, it’s always a pleasure to brows through Elle Decoration during my flight back to Rome…looking at pictures is so relaxing, and in the latest months I’ve enjoyed more reading Elle or Stillvoll Wohnen rather than Vogue Paris! I will never wear some designers still I like to see the editorials, I will never “decorate” (in “romantic style”), but a magazine full of pinks and almond greens is quite fun…

Berlin 3000

Well, I just noticed that we’ve just passed the 3,000 hits mark! thank you to you, browsing regularly what’s going on in this Kiez on the net!

And another reason to be happy…I’ll be back to Berlin tomorrow! But…also this time round, without MeinMann

MeinMann is in Barcelona…sniff…next time, together in Berlin, promised??

Boring is Beautiful – German residential property is joining gold as a safe haven for investors

from PropertyWire:

German residential property is joining gold as a safe haven for investors disillusioned with equities and afraid other assets will be eaten away in the global economic downturn. Analysts are predicting that German real estate is increasingly being seen as a long term, low risk investment for institutions worried that the financial crisis is causing soaring inflation. ‘Residential property is regarded as boring. But today, boring is beautiful and capital preservation is more important than high returns,’ said Udo Scheffel, Chief Executive of German residential property company GBW.

Surprise house price increase in Germany

An interesting article from Global Property Guide:

“Germany remains the world’s most stable housing market. Prices moved little in 2008, despite the slumping economy. Yet there’s actually some good news. One thing you’ve got to remember is that the East Germany continues to do relatively poorly, dragging down German house-price statistics. So the ‘no news’ German numbers actually represent some great news for the Bavarians, Dusseldorfers and other West Germans. Three years ago The Economist magazine forecast that the Germans would come out of the bubble well. In terms of house prices, they’ve been right”. Click on the link above to read the article…

sleeping in

Last weekend, first night in the flat! The flat needs still a bit of work on the storage units, so there are still tools and paint around the living room. But bathroom, kitchen and bedroom were up and running. And anyway, no hotel or B&B had been booked…so I would have slept in the flat no matter the situation.

Tests were ok and with flying colours…

Opting for a big shower (2m x 1m) rather for a bathtube was definitely a good idea, especially with the rainshower set. The snowy and icy cold weather in Berlin provided the ideal test also for the heating system below the dark anthracite grey tiles of the bathroom. It’s a pleasure to walk barefoot on something very similar to stones warmed by the sun. Our personal zero tolerance for bathroom furniture – except from a built-in small cabinet – also gives to the bathroom a nice mineral feeling, quite warm thank you to the mixed use of mosaic and milky-white tiles on the walls.

The kitchen test was limited to a good cup of tea as I had not bought groceries…in the picture you see a gorgeous constructivist-looking IKEA teapot. I bought the bold zinc letters forming our logo (RC)^2 last summer in NYC at the Anthropology store on Madison. Oh boy, at that time we just had the keys of the flat and the project was just a sketch done on the table of our favorite roman pizzeria while brainstorming with our architect. I can’t believe that sketch is now reality…

The living room hosted still a bit of work in progress, but it’s the only room which retained its original destination, albeit slightly modified by the disguised presence of the kitchen and by a mimetic mezzanine. The Rundbogenfenster – sort of bow window – was refurbished but untouched. A kind neighbor who lived 1945 in this Altbau building said that we are lucky to be on the front side of the building, which was not damaged by bombs and this explains the fact that these windows are only present on one side of the house. As the oak original flooring and ancient bamboo internal ceiling structure.

The bedroom is fully furnished even if curtains are badly needed in order to guarantee some quiet sleep, the 2 windows are indeed big and flood the room with light.

My brother and I bought a small radio-alarm clock in order to have some familiar noises around us. We were surprised by how silent the flat is, good 1900’s isolation, I suppose. We could hear steps on the kerb covered with icy snow during the night.

I hope that on the next trip MeinMann will be able to join me to Berlin, to see the result! He found this flat during our second flat-hunting campaign, back in november 2007, we signed the contract together in december 2007 and since June 2008 – when we finally got the keys – it’s been my task to commute monthly to Berlin.

I am now on first-name terms with a few cafe-keepers and shop assistants, I’ve found out what I can get at Aldi and what deserves a trip to Kaiser, learned the ropes on the comprehensive pillow offer in Germany, become an expert in return Blitztrips to IKEA in under 1 hour…the Kiez is my oyster.

I am looking forward to enjoying together the Gemuetlichkeit* of our flat, after all this busy-bee activity and all the research and big and small decisions. We deserve at last some farniente in Schoeneberg, going to the market in Winterfeldplatz, buying a Bund of flowers or listening to a nice record at home…

*=something more than cozy…warm, intimate, comfortable, good to stay in…something that cats master very well as you can imagine