News of the Industry

News
28-May-2018

Child allowance for first-home buyers introduced retroactively until the beginning of 2018. The new law decided upon in the coalition agreement between the Christian Democrats and Social Democrats is supposed to enter into force as quickly as possible, and to be paid retroactively from January 2018 to families with a pre-tax income of up to 90.000 EurosAltogether, up to 400 million Euros are scheduled for the new schemes to make public housing more affordableincluding special depreciation to promote rental housing construction.

The new child allowance grants parents subsidies of 1.200 Euros per year and child and thereby functions similarly to the first-home buyers` allowance dismissed in the year 2005. The pre-tax limit increases by 15.000 Euros for families with more than one child, even entitling parents with 3 children and a household income limit of 120.000 Euros to claim the new allowance

The reactions to the proposals regarding the rental housing market are more ambiguous however: on the one hand, reducing the apportionable expenses for refurbishments slow down investment, the introduction of a special depreciation rate of 5 % over four years provides stronger incentive for investors on the other. 

Demand for Serviced Apartments Rising

Serviced apartments with hotel-style amenities are becoming increasingly popular. Especially German capitals like MunichBerlinHamburg and Frankfurt are particularly seeing strong demand. Therefore, it is no wonder that international investors are especially focusing their attention on Germany and the UK at the moment.

A total of 32 % of the Europe-wide number of units planned are set for completion in Germany alone until the end of 2018, resulting in an overall transaction volume of 235 million Euros for the entire year. Considering returns around 5 % in average, serviced apartments are a lucrative niche for capital investors

Especially the rising number of commuters and project-based co-working models, the increasing global mobility and the rise of single-person households are contributing to the demand.

Vacancy Rate for Office Buildings Keep Declining

Following a current study published by CBRE, the vacancy rates in Germany`s five major office locations Munich, Hamburg, Berlin, Frankfurt and Stuttgart have declined by 1.3 percent compared to the previous year, leading to an overall vacancy rate figure of 4.3 %. Meanwhile, office rents increased by an additional 8.6 %.

The German office market offers lucrative returns of up to 3.2 %, though still behind London (3.8 %) and New York (3.9 %).

Invest Now!

You are looking for a lucrative investment opportunity on the Berlin property market, then do not hesitate to contact us today via telephone or mail.

Your Accord Estates GmbH Team


 

 

 

 

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