An Economic Outlook
At present time, the economic outlook of Germany is definitely and certainly bullish and things are looking up for this highly urbanized state. From 2008 up to the present, the economy is metamorphosing from being predominantly export driven into a growing domestic demand scenario. As never before seen in the past several years, salary grade increases for the labour sector have been adjudicated and approved and consumerism has been very receptive to the economy. This development has resulted in the lowering of the unemployment rate, as more and more companies are getting back into hiring additional employees and staff. This economic revival has energized the property market sector of the country.
The Local Economic Situation
The year 2006 has seen the creation of 7,000 new employment opportunities and the growth of the economy of Berlin by at least 1.9 percent. Although this economic growth rate is below the average growth rate in German history, the increase in new jobs and the proportionate and consequent decrease in unemployment is certainly above average. It is evident that since this period, business firms and corporations have embarked on expansion ventures, setting up new establishments and branch offices in Berlin, with emphasis on media and innovative and modern technology and resources. After the fall of the Berlin wall, and the exodus of inhabitants of Berlin to the newly developed suburbs and districts, the population of Berlin today is at a constant 3.4 million people, making many berlin apartments for sale available.
The National Property Market
In the last three years, Germany has seen a tremendous pouring of capital from abroad to its property market sector, and the three successive years have each outshone the other in terms of economic performance. Although in 2008, there was more of an economic fortification and regrouping that occurred. The plentiful number of big investors has opened up a mass of trade and business opportunities for the smaller and private investors that could partake of the large economic pie.
The Property Market of Berlin
Before the property market boom started in 2006, Berlin was in economic stagnation for almost two decades. In 2006 through 2007, big international investors have capitalized in acquiring large inventories of undervalued properties. 2006 saw a record turnover rate increase of 50 percent at an unprecedented value of 15.8 billion Euros. This has led to property rate increases with the 8 percent to 10 percent yield becoming unattainable in certain locations. Prime locations showed yields of below 6 percent, while ideal locations like Steglitz have produced offers ranging from 6.5 to 7 percent, many of them possessing immediate development capability.
The rental rates for residential apartments and flats have shown significant increases during this period. In this regard, the viability of Berlin apartments for sale as an investment has become a wise and fruitful business option. The property in berlin has turned very attractive at almost all levels because of the full potentials of appreciation of capital investments. A word of caution, however, is to make careful research and study and acquire proper and adequate market knowledge first before making the actual purchase or acquisition, in order to get the best deal available in an ever-growing competitive market.
Recent Berlin Apartments Market Development
When talking about Berlin apartments for sale it has to be noted that the trend in Berlin in 2008 and onwards is to focus on privatization schemes where the big international corporate investors who have purchased vast tracts of residential properties are marketing individually titled apartments, whether as vacant condominiums for the owners personal usage, or as a buy-to-let apartment investment. These schemes have generously opened a host of business opportunities to the smaller and individual private investors, making for a healthy and bullish property market sector.
Recognizing this economic revival and upswing in Berlin, banking and financial institutions have opened up financial packages that are designed to further stimulate the growth of the property market sector. They have offered the public financing at the level of 65 to 70 percent of the purchase price of properties.
The economic circumstances in Germany, specifically in Berlin are definitely bright and promising, and it appears that this will hold true for a more enduring period of time. Basically, the property market in Berlin is propped up by the following factors: a strong and stable population base backed up by new employment opportunities; cooperation and commitment between the foreign investors and the German government to the property locations; lower market prices than neighbouring European locations with higher yields after financing.