Posts Tagged 'Mitte'

Resilient Berlin real estate

This morning the New York times has an interesting article on real estate in our favorite city….”Berlin Real Estate holding firm”.

The banking crisis has left some wealthy Germans worried about leaving large amounts of money in their accounts or investing in stocks and shares. They have turned instead to bricks and mortar and a result has been increased sales to locals. This is a real change in a city where fewer than 15 percent of the 3.4 million residents own their homes.

Mr. Frank says he has noticed a change in the foreigners now coming to Berlin: “There are more entrepreneur types arriving, more people setting up businesses, especially Internet start-ups.”

Still, most large corporations have not relocated to Berlin from Munich, Hamburg and other cities, much to the disappointment of the capital’s administration.

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Bohemian Berlin’s coolest landmark to be sold off to the highest bidder

Hello! Buona Befana! (how do you say that in english…?)

Today on the Independent an interesting article on Tacheles…another building of Historicismus era (1908), more famous for its “between-ruin-and-a-squat” cultural centre. Let’s hope that Tacheles survives without becoming another hub of trendy (sic) boutiques…Mitte is becoming toooooo mainstream!!

Our marvellous Berlin Architecture Guide says that the building initially hosted a department store, in 1928 AEG moved in, only after WWII it became a a cinema and an art school and the Fall of the Wall marked the start of the artists’ association.

Berlin’s coolest landmark to be sold off to the highest bidder

Artists’ collective fights to stay in Tacheles building visited by thousandstacheles-berlin-2_109544a

Continue reading ‘Bohemian Berlin’s coolest landmark to be sold off to the highest bidder’

Location, location, location!

Just back from beautiful Berlin dressed up for Fall, and here is an article on the real estate market.
Location is the most important factor. This is why you need good shoes (and a bike) when looking for flats. You can indeed find something very expensive and hype, or very cheap but in no-man’s-land.
My personal feeling is that during this phase of the financial crisis Sellers who are individuals are waiting before parting with their properties, because they do not feel so confident about holding cash.
At the same time, there could be financial institutions who had borrowed in order to do big developments who may give up. So…the market is in wait-and-see mode. Keep your options open, then…
If you click the title you will see also many comments to this article. You already know AflatinBerlin’s view…
a) Berlin is a value story, not a speculation one – that was a few years back…no quick bucks here.
b) Berlin Maklers are very professional. It is true that the majority do not speak English but the Expose’ are so detailed and the descriptions so close to the reality that you can do your scouting even if you do not speak German. When you get closer to the transaction you will ask for a professional translator’s help…the German Embassy provides always a list of professionals you can trust.
c) there is not just Plattenbauten (=monotone apartment blocks), so…look for location, location, location!
d) there is more to it than Prenzlauerberg!! (we are going West)
Timesonline October 17, 2008

Berlin is cool and property is remarkably affordable

Apartments in the trendy parts of the German capital go for as little as GBP 45,000

Berlin is pinning its hopes on the young. More than half its population is below the age of 35, media companies are flocking to the city and, with three excellent universities, it is establishing itself as the biotech and research capital of Germany.

The Government has invested €75billion (£59 billion) to improve the infrastructure of the city, enticing expatriates to find a home there or invest in residential properties. This, combined with numerous cultural and scientific places of interest, is only adding to the city’s attraction.

The recent privatisation of the public housing stock has led to a small increase in the number of homeowners. However, the city has a strong rental culture – only 14 per cent of local people own their home – and with the rents low and laws heavily favouring the tenant, there is little to drive the domestic market.

Charles Peerless, a director of Winkworth’s international department, concurs: “Berlin is exactly what the current housing market needs. With its huge rental market, it is a safe investment. The ‘less risk and less reward’ strategy is what most long-term investors are choosing.”

The choice in Berlin ranges from the former East German high-rise blocks near Alexanderplatz and the experimental living communities of Kreuzberg to the Neo-Classical buildings of Prenzlauer Berg and Friedrichshain. The latter are the most popular with foreign investors.

These large apartment blocks, with their elegant stucco façades, were built in the early part of the 20th century and offer spacious, high-ceilinged accommodation that is usually ranged around an enclosed garden square. Most of these properties have been sold off in volume to investment companies that are extensively refurbishing, adding central heating, double glazing and modern kitchens and bathrooms. The buildings have been re-roofed, the communal gardens landscaped and all interiors redecorated, with the aim of increasing rents and, in turn, improving capital values.

Andreas Pichotta is one such developer. As a passionate Berliner and admirer of the city’s architecture, he makes his projects as much a labour of love as an investment, although he knows what will make him money. “The most important part of the investment business is getting the right location,” he says. “There is an abundance of very cheap, unrefurbished property in the city but if you buy in the wrong place you are doomed.”

He uses his local knowledge to choose the buildings that he buys and refurbishes with great care. He has made good investments in Prenzlauer Berg and Friedrichshain. Prenzlauer Berg is an area of the city undergoing a renaissance. There is an abundance of restaurants, cafés, bars and eclectic boutiques. Many of Berlin’s media, arts and student population live here. It was not bombed in the Second World War so there is a wealth of old-style apartment blocks. Many have been restored to enhance their traditional features, creating picturesque squares where regular farmers’ markets attract affluent locals.

The area has the highest birth rate in Germany. It became very fashionable in the late 1990s and those who moved there then are now in their 30s, young professionals with families, looking for larger apartments. The location is perfect for commuting into the city and, accordingly, rents are beginning to rise.

Perhaps an even better investment might be the slightly shabbier area of Friedrichshain, in East Berlin, which contrasts with the more gentrified and expensive areas of Prenzlauer Berg and Mitte. After the Berlin Wall came down, Friedrichshain began to develop a reputation as a young district. Its lower rents attracted artists and students; its multitude of empty flats also attracted the attention of West Berlin squatters. It retains its slightly run-down atmosphere – which gives it its character.

(excerpt)

safe as townhouses

From DeutscheWelle:

The market for privately owned townhouses in Berlin is booming. Owning a townhouse means short distances to work, no traffic jams and being close to every advantage the city has to offer.

For many well off middle class people owning a townhouse is a dream come true. It’s part of a trend towards reurbanization and it’s big business too: last year 3.5 billion euros was invested in town housing in Berlin’s central district of Mitte.


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