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Tuesday, June 25th, 2013

Stark Contrast: Comparing the purchase prices in central Berlin and central London

Stark Contrast: Comparing the purchase prices in central Berlin and central LondonReal estate opportunities abroad have always been attractive to investors. Typical locations have long included Paris, New York and London, yet recently Berlin has also become a popular choice for residential asset. PricewaterhouseCoopers’ report on “Emerging Trends in Real Estate” within the European market places Berlin in second position for 2013, ahead of other major cities such as Moscow and Amsterdam. Berlin is described as being “at the very top” with “fundamentals that are simply good”.

Stark Contrast: Comparing the purchase prices in central Berlin and central London

Source: Own weighted calculation, Pwc, Jones Lang La Salle, Immobilien Data

Stark Contrast: Comparing the purchase prices in central Berlin and central London

Once we synchronize the data, we can immediately see that purchase prices in Berlin-Mitte are lower in comparison to those in London’s central areas. This is because the British capital has long been considered as a prime destination for investment, whereas the German capital only became famous for its opportunities after reunification. In the last three years, prices have increased by 15% in London’s central districts and by 17% throughout the whole of the city, whereas purchase prices in Berlin-Mitte achieved a 51% increment and the entire city’s average price rose 39%.

London’s stable market has maintained a consistently high purchase price per square metre whose increments, according to our analysis, are mostly due to fluctuations in currency exchange rates. On the other hand, residential investments in Berlin have dramatically increased in value, yet purchase prices are still lower than in London. Market reports confirm this positive trend and predict further space for appreciation within the residential market.

Read a more in-depth analysis here>>

If you are interested in purchasing apartments in Berlin-Mitte, click here to see offers>>

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