House price growth rates put the German capital ahead of its worldwide competitors. As published in the “Global Residential Cities Index“ by the property consultancy Knight Frank, house prices in Berlin grew by 20.5 percent in 2017.
According to the study, Berlin is the only among 150 cities examined in which asking prices for residential properties have increased by more than 20%. 2016 still saw a total of twelve cities among the metropolises with comparable growth rates, the majority located in the People`s Republic of China. In 2017 however, Hongkong was the only Chinese city to achieve a top ranking with increases of 14.8%. The leader Berlin is followed by Izmir (18.5%), Reykjavik (16.6%) and Vancouver (16.0%).
The development of the house price growth rates reflects the large gap the German capital has to overcome in order to catch up with actual house prices of its international competitors, as they are still relatively low compared to other metropolises.
Transaction Volume of Berlin Commercial Property Continues to Rise
In the first quarter of 2018, the commercial investment market in Berlin once again delivered revenues above the mark 1.1 billion euros. These figures were published by the consulting firm Colliers International.
Even if these figures are down 27% compared to the previous year and are based on a smaller number of transactions, this still represents a volume above average on the long run.
Sales in the small to medium range were primarily dominating the market, volume sales above the 100-million mark were rather unusual.
Right of Pre-Emption already Exercised 21 Times
Since the exercise of pre-emptive rights in social conservation areas, the living space secured in affected Berlin districts has increased by a factor of eight. In 2017, twenty-one rights of pre-emption have been exercised already. 674 homes were secured in this way, with the figure standing at 284 for the current year so far.
The Berlin Senate is planning to publish annual reports on the exercise of pre-emptive rights in social conservation areas from now on.
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Your Accord Estates GmbH Team