21 Jan Berlin Ranked No.1 for 2016 by PWC
The Emerging Trends in Real Estate© Report is an annual report published by PWC that is now in its 37th year. The report includes interviews and survey responses from hundreds of leading real estate experts across Europe.
The opinions given by the investors, developers, property companies, lenders, brokers and consultants in this report are a proven indicator of the performance of real estate markets.
With the recent publication of the 2016 edition of this report we examine what these experts and this report think of Berlin.
Investment and Development Prospects for 2016
Change expected in amount invested, rents and capital values in 2016
Europe’s 10 Most Active Real Estate Markets Q4 2014 -Q4 2015
In the 2015 report Berlin was third behind London and Paris in terms of real estate activity. This year Berlin is second to only London with €10 billion of deals transacted between Q4 2014 – Q3 2015.
Source: PWC Emerging Trends in Real Estate 2015 and Real Capital Analytics
The Outlook for Berlin
Every year PWC surveys leading real estate experts around Europe and asks them to rank major European cities according to their investment potential. This years report sees Berlin top the experts lists for the second year in a row.
Berlin has been trending upwards for a number of years now and the wealth of opportunity in the city is clear to see. The German capital is dramatically undervalued when compared to other capital cities in Europe and experts note that there is still plenty of potential for growth in prices and rents.
What the experts are saying…
“Berlin has come on our horizon much more strongly just because of the wealth of opportunity there,” says a pan-European fund manager
As one London-based property player, says: “My one long-term bet is Berlin. It has no manufacturing, but it is the seat of government and it is gradually becoming an important city for Germany, and it has the land to grow. It has also got an innovative, young population and I think tech in Berlin will be a sector that is going to expand.”
London is going to continue taking the lion’s share of investment but Berlin is getting a lot of attention. It’s a city that is still underdeveloped from a real estate point of view,” says an investor
“It has got positive migration and very cheap housing, so there is room to raise rents. It is developing as a cultural city and it has evolved a lot in the last 10 years.”
PWC have once again confirmed what our analysts at PFG have known for a long time; Berlin is the most exciting real estate market in the world.
The German capital is now firmly on the radar of any serious real estate investor. Visit PWC to read the full Emerging Trends in Real Estate 2016 report.
If you would like to know more about the information in this article then send us your questions and one of our dedicated team members will contact you.
We look forward to hearing and working with you in the future.