11 Feb PWC Ranks Berlin No. 1
The PWC Emerging Trends in Real Estate© Report is one of the the oldest and most respected publications in the industry. Now in it’s 36th year, it includes interviews and survey responses from hundreds of leading real estate experts, including investors, developers, property company representatives, lenders, brokers and consultants. In this article we take a look at how the report ranked Berlin’s real estate outlook.
International and domestic investors are swarming to the German capital, lured by what they consider relatively inexpensive assets and development opportunities.
Europe’s 10 Most Active Real Estate Markets Q1-Q3 2014
According to the PWC report, domestic buyers have historically dominated Berlin’s real estate market. However, in recent times there has been a dramatic shift as international investors pour capital into the city.
Berlin is now only behind London and Paris in terms of real estate activity. In the first three quarters of 2014 alone €2.9 billion of deals were transacted.
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 year respondents placed Berlin firmly at the top of this list.
The positive outlook for Berlin is of no surprise to those who have been watching this market. Over recent years respondents to the PWC survey have consistently given Berlin a positive investment outlook. This year one pan-European investor was quoted as saying, “Berlin has excellent fundamentals and an extremely low level of pricing”.
The pricing of rental residential has gone up significantly, but compared to any city in the EU, Berlin is cheap.
Berlin has a young, vibrant population and is fast establishing itself as a European media hub. The PWC report quotes another pan-European investor as saying, “The market has been static but the demographic trends are going in favour of those cities. People want to live there again, in a way they haven’t for the past 20 years.”
The next downturn won’t hit Berlin because of pent-up demand.
The PWC report confirms what our analysts at PFG have thought for a long time; Berlin is one of the most exciting real estate markets in the world. Over the past few years the city has delivered emerging market style returns in one of the most developed markets in the world. Visit PWC to read the full Emerging Trends in Real Estate 2015 report.
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