DOHA: Berlin’s real estate market is emerging as one of the most favourite destinations for Qatari investors compared to any other big European cities due to several positive and attractive factors the German city ensures to the property owners, said a senior official of a Berlin-based real estate services provider, yesterday.
Some of the important incentives the capital city of the Europe’s largest economy offers to real estate investors include sharp rise in capital gains, high rents and occupancy rates of properties, and robust future economic and financial stability of the German economy.
“Of late we have witnessed surge in enquiries, and a lot of Qatari investors buying properties in Germany, especially in Berlin because of various reasons, such as transparent legal system, rule of law, fantastic capital gain and high return on investment,” Achim Amann, Director of Black Label Properties, told The Peninsula.
Amann added: “Over the last two years gains in property have increased by more than 15 percent in the German property market, especially in the city centre of Berlin its much higher.”
He said that investors from Qatar and other Middle Eastern countries, such as Oman and Kuwait, are very happy the way the market treat their assets.
Asked about the nature of Qatari investors, he said that there are different types of property buyers who are investing in a wide range of asset values varying between €45,000 and €25m.
“We have different types of clients who are buying pure residential apartments for their children to live and study in Germany as education in many universities is free. And also we have big number of people who buy properties for investment purposes, and there are others who are buying for self-accommodation who frequently travel to Germany for tourism and medical treatment,” said Amann.
He also added that another reason is that Berlin enjoys a competitive advantage in terms of property prices compared to other big cities such as London, Paris and Frankfurt.
“Since the UK has been facing a lot of uncertainties at the moment due to the Brexit and other factors such as decline in the value of assets, Berlin is looking very stable and safe for the future.”
He also noted that the asking prices for rents last year increased by 30 percent and this year by 15 percent, and the occupancy rates for residential properties in Berlin is as high as 99 percent due to the effective regulatory system which keeps tight control in protecting the interests of property owners and the tenants.
In addition, Berlin also has lower cost of living compared to other big cities (average €1500/month) attracting a lot of tourists and foreign workers.
“Berlin is not only a highly multicultural city with unique history, but also a dynamic economic region offering one of the most attractive real estate markets in the region. It is the largest city in Germany with over 3.4 million people. It’s a melting pot of Europe with nearly 50,000 people coming to work and live here each year. The city also is home to some of the best education, healthcare and welfare centres in Europe, ensuring a high standard of living, said Amann.