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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