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International cities attract Chinese property investors

January 30th 2019

By Global Time

In recent years, countries all over the world have experienced a great deal of change in the property markets in their largest cities and Germany is no exception.

In recent years, Germany has experienced an influx of Chinese buyers and investors that often "look for a trusted partner" when purchasing real estate in Berlin, a city "more attractive than ever."

Chinese buyers like to diversify their investment portfolio and they value German quality and reliability. Chinese who are interested in investing in Berlin are "big fans of the classic European architecture of the 19th century."

There is a trend that is somewhat unique to Chinese clients attempting to enter the real estate markets in Berlin and, more recently, Frankfurt. Whereas buyers from the US and the UK will often look for property in Berlin's hip, artsy neighborhoods and Russian customers typically seek property near parks or the city's many rivers, Chinese tend to emphasize proximity to educational institutions when considering which property is right for them.

A big factor in their decision process is always the proximity to big universities. Chinese people often buy apartments for their children long before they are born in cities where they plan for them to study one day.

The market stay balanced and economic outlook remains strong despite a degree of uncertainty in the German market as a result of tightening foreign exchange restrictions for students, looking to benefit from Germany's nearly nonexistent tuition rates and prospective changes in tax policy for foreign property purchasers.

A decade ago, global clients simply didn't consider investing in German property, so the market is relatively untapped. Today, Germany's market is increasingly being referred to as the 'safe haven' for investors. Berlin has a stable environment and strong investment opportunity for both rentals and capital growth.