Is it a good time to buy an apartment in Berlin?
- Yes. It’s a good time to buy. Berlin’s economy is expected to grow. The forecast for population growth is also very stable. And there is nothing to rent in the city, so property prices will show stable single-digit growth in my opinion. You just need to pay attention that you buy at a realistic price and not overpriced (above a current market price).
- To live in yes. As an investment property no. Too much uncertainty.
- Prices did not stop going up, even during the pandemic (although rents did a bit). People think it is a bubble that will blow. Funny enough prices will never go down, so the sooner the better. It is not a bubble, it is still one of the cheapest capitals in Europe and the prices are getting closer to settle. Not all deals are good deals, of course, the best thing is to focus on upcoming areas of building under construction. By the time it is completed, that’s a 30% profit already.
- I feel that it is speculative. Corona has had people realise that working from home is an option more than ever. In 2020 Berlin has lost citizens for the first time in a while. I can imagine that there will be a percentage of people who leave the city to work remotely from somewhere green. In the shorter term that could reduce the pressure on the market. On the other hand, I can’t imagine what will happen to cities in the future. There is a good chance that despite this temporary setback the growth will continue.
- No. Berlin‘s economy will never recover from the pandemic. That‘s what the smart money says.
- Deutsche Bank published a report saying that the Immobilienboom is slowing down and that prices in Berlin are expected to decline in the next few years. If you want to throw your hard-earned money down the drain, then it’s a great time to buy. If you’re smart, buy somewhere else. They are a very trustworthy source, as they’ve predicted the price rise pretty well, also they’re mortgage providers so know the score.
- It is always a good time to own an apartment in Berlin. I believe prices probably went down and the pandemic won’t last forever. I remember that the demand for a good flat was quite high when I was there so I can’t imagine how that would be a bad decision.
- Prices are going up and may go down later (nobody knows for sure!) but interest rates are at an all-time low and probably will go up soon… If you already pay high rent and can secure a 25% down payment, then yes go for it as the mortgage payment won’t be too far from your current rent. There are also less known government subsidies that help out first-time buyers especially with kids like KFW loans with cashback & Baukindergeld.
- In my opinion (and with 16 years experience as a real estate agent) I would say yes. Especially if you want to live in it – and even if it’s a rented flat. However, don’t buy one and leave it empty, please. In my opinion, this is mainly why the prices have gone so much up and it’s so hard to find a rental flat; people just parking their money in a flat and having so much of it that they can afford just using it a week a year when coming to shop. I find that extremely unfair to the people living here. Unfortunately, there is no law prohibiting this. Prices have been going up for approximately 20-25 years – and only up. It hardly costs anything to loan money – the interest rate is low. So if you plan to live in it for at least 2 years I’d say go for it.
- It’s a question of many factors – typically whether you should rent or buy. Generally, now that interest rates are around 1%, buying is very cheap, hence the sharp price increases. That in itself should not determine whether you buy though. Key questions:
- How long will you own it and live there?
- What are the upfront fees?
- How much will the property appreciate?
- Is your current rent relatively low or high?
- What is the interest rate?
- Here is a calculator for renting vs. buying in Germany.
- I would not buy until the court decides on the rent caps. Prices might fall drastically if it’s upheld; then might be a good time to buy. Of course, it depends on whether you plan to live in the apartment forever or want to rent it out or sell it at some point.
- It’s always a good time to buy your own place specifically if you are going to live in it. Just make sure you can afford the total monthly costs before you buy.
- I’d keep an eye out on those rent caps if it was me. Things could change. And you should feel like it’s an investment you can get more money back on than what you paid. When we aren’t in Berlin, we rent our place which has given us a lot of freedom. We are slowly doing up our flat over years and while that doesn’t really help with the rent at our size and the cap, it helps resale. I suggest getting a run-down apartment and doing work on it yourself.
- Yes, it still is. Year-on-year growth is still projected at 8-12%, with absolutely no signs of slowing. You just have to pick the right neighbourhood. You’ll get a lot more return on investment buying around the periphery of the Ring instead of inside it, especially Mitte, Charlottenburg, Kreuzberg and Prenzlauer Berg are not increasing in value as fast as the areas surrounding.