Germany Property Investment News

"Trendy" investments in east Berlin

Once-impoverished districts of east Berlin are now offering some of the most exciting opportunities for Britons looking at investment property in Germany, according to regional analysts.

While the Berlin property market as a whole is booming, fashionable areas in the eastern half are yielding excellent rental returns, inspired by impressive new refurbishments.

Denis Madden, managing director of the German Property Centre, said that rental yields of up to ten per cent were possible in certain areas, thanks to the renovation projects.

"These buildings, these areas now can look quite spectacular. They've been recently refurbished, they're quite dynamic, a lot of young people have moved in, new restaurants, new businesses.

"In some ways there's a more positive spirit in the former East than in the West. In the West it's more mature and stable, it hasn't changed so much."

Mr Madden explained that fashion-conscious investors would be intrigued by particular parts of east Berlin.

"It's very trendy for people in Berlin - particularly if they move from former West Germany or overseas - to go to Prenzlauer Berg or Berlin Mitte," he commented.

"And increasingly we're seeing the gentrification, if you like, of some of the more 'hippier' areas of East Berlin. Friedrichshain for example is being established as a media quarter, with people like Universal Music and MTV opening regional headquarters in the district."

Yields in Berlin have grown by an average of 5.8 per cent over the last two years, according to the Berlin Senat.