Highlights - Marbella Luxury Real Estate Magazine 2019

International
GERMANY
PLAYS
CATCH-UP
Over the past years German property has
experienced increasing interest from
international investors all over the world.
Actually, the German market is being referred
to as the ‘safe haven’ of Europe.
By Sven Henkes, Ziegert Immobilien/Knight Frank
T
he Berlin boom for example continues:
by international standards the capital is
secure and remains affordable with an
average achieved price of 3,997€/m 2 in
2018. Residential high-rises are shooting up into the sky,
visionary neighbourhood projects engaging with questions
of future urban living, new developments fulfil client
requirements that were completely unthinkable in Berlin
some years ago. Berlin just keeps on growing and has
developed into the creative hub of Europe. Start-ups and
companies from around the world like Google, Samsung,
Pfizer and Siemens are being drawn to the capital for its
vast reserves of talent. Recruitment costs are on average
40 percent lower than in other German cities. The massive
growth in population (since 2011 Berlin grew by almost
300,000 people), the economic upturn (in the past five
years Berlin’s GDP growth outperformed the national
average) and the peak in employment levels have over
the last ten years caused justified interest from foreign
buyers. New prime locations will take shape, as along
Mediaspree and apartments with a view of the water that
cannot be obstructed are some of the most sought-after
in Berlin. There’s hardly any other major city where these
locations are still available.
Berlin’s appeal for global
buyers as capital investment
or for their own use continues
unabated, precisely because
the capital’s prime locations
still cost a third of the price
of an equivalent property in
London. The key to success
now is to link up the demand
for housing, to focus on
customer requirements and
understand local conditions—
Berlin has no time to lose. Its
appeal and spirit of innovation
are drawing huge numbers of
people to the metropolitan
area and a response is
needed since the number of
apartment completions falls
below the required 20,000
p.a. year after year. The global
city of Berlin has arrived, in
both an economic, cultural
and political sense.
But Germany has much
more to offer than just
its capital. Recently we
consolidated our partnership
with Knight Frank and
have now joined forces in a
cooperative venture wholly
unique to this country. It’s
taking place in Frankfurt, and
in the approach to Brexit,
experts expect up to 5,000
new jobs to relocate to the
city. The focus of interest
is also beginning to expand
out from Berlin to the likes
of Frankfurt, the Eurozone’s
principal financial centre. Its
thriving market offers a wealth
of opportunities thanks to the
exciting combination of local
bedrock and international
growth options. Investors
have a stake in a growing
selection of very attractive
investment opportunities.
The upcoming development
FOUR, located in Frankfurt’s
CBD, is just one example of
the early signs of innovation
prevalent in Germany. It
is going to remould the
skyline by adding four new
skyscrapers.
In short, it’s impossible
not to be struck by the huge
potential for good quality, and
as Germany’s cities begin to
play catch-up with the rest of
the world and the demand for
investment continues, this is
an area primed for growth.
Germany’s real estate market
is without a doubt one to
watch over the coming years.
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