We added the Ernst & Young Real Estate Trendbarometer Germany in German language to our research database.

You can get the report online here, or from our database.

Key Findings for Berlin:

42% of the residential investors put Berlin on there top priority destination, followed by Hamburg with 24%.

The research attached has covered Israeli investors who had invested in at least one property overseas during 2011. Which raises the question what type of investors in terms of budget spend have been asked. Its a big difference to ask 100.000 Euro investors who mainly invest in flats or 500.000 Euro investors who typically go for a multifamily residential. However the average expectation of the Israeli investor of at least 7% annual yield seems high if this excludes the capital gains, which typically doesn’t occur annually.

The research findings

The top investment destinations for investment are:

1. New York City, US
2. Berlin, Germany
3. London, UK
4. Barcelona, Spain
5. Various islands, Greece

Berlin is perceived as under priced market, with high yields on rental properties. The robustness of the German economy in the lagging European economic environment was one of the top factor which have affected the choice. Direct flights and positive attitude toward Israelis have also encouraged investors to operate in this market.

New York City led the list due to strong belief that the US market in general and NYC in particular will continue to demonstrate strong demand for rental and commercial properties. The direct flights and lack of language barriers as well as the traditional good relationship between the countries were the top positive factors affected the choice. The multifamily residential market and university expansion, along with the The Technion and Cornell win in building a two-million square-foot applied science and engineering campus on Roosevelt Island, drew positive attitude toward investment in this market.

London is another popular market among the Israeli investors, with direct flights, strong business ties , familiarity with the market trends and the Olympic games were stated as the main reasons.

Barcelona is a relatively new destination for the Israeli real estate investor. The coastal city has become one of the most popular destinations, and has seen record-breaking numbers of incoming tourists from all over the world. Together with the price reductions due to the economic crisis, Barcelona offers great return on investment mainly through short term rentals on small apartments in the city center.

Unlike many European real estate investors, the Israeli investors demonstrate lower interest in purchasing leisure properties, but rather view real estate as a yield baring investment channel. The average expectation of the Israeli investor is at least 7% annual yield.

Residential and commercial properties are considered as the most interesting vertical investment opportunities. Focusing on urban centers is dominant across the board. The Israeli investor believes in cities and its ongoing tourist attraction to lower the perceived risk in investing abroad. With many uncertain factors involved in international investment, the fear of empty properties while maintenance costs continue to take its toll is the top investment barrier.

The research was conducted by TLV Expo, in order to study the motives, preferences and priorities of the Israeli investor when engaging in overseas real estate activities. The research has covered Israeli investors who had invested in at least one property overseas during 2011.

About TLV Expo

TLV Expo, held in Tel Aviv, Israel, is the premier event for international real estate aimed at Israeli investors. The event focuses on networking with the leading Israeli investors, presenting investment opportunities around the globe and delivering valuable content.

Dozens of exhibitors and speakers are taking part in TLV Expo, providing them with smart reach and positioning in front of the Israeli audience. The Israeli investor is very business oriented, making TLV Expo an ideal platform for yield baring offerings in the retail, office and residential properties sectors.

TLV Expo participants are arriving from the various sectors of the real estate industry: corporate and private investors, fund managers, high net-worth individuals, project developers and managers, consultants and agents.

The event is accompanied by a two day conference program covering current trends and shifts in the real estate investment markets, providing added value and thought leadership talks to the audience.

www.tlvexpo.com

We just added 2 new documents to your Berlin/Germany real estate research folder.
To get access just send us an email: office@berlininvestment.com
Would be nice to drop us a line what type of property/project you are into,
so we can ad you to the right mailing list and send you more info, research and offers about Berlin Real Estate.

1 new research document in English.
1 new research document in German.

Location, location, location is not always obvious.

View Larger Map

If you talk to restaurant and coffee owners in neukoelln (like we do for you) they will all tell you about rumors regarding Flughafenstrasse. This street is close by the area arround Herfurthplatz with its nice Schillerpromende mentioned in an earlier post.

And now guess what: As featured in Zitty and Prinz Magazin: there is a new restaurant darling in town

Lavanderia Vecchia

.

right on Flughafenstr. 46, 2nd Yard, Neukölln, U-Bahn Neukölln
Tue-Sat from 12 clock, dinner menu from 19.30 clock,
Tel: +49-30-62722152
info@lavanderiavecchia.de

Berlin Restaurant hardly take any credit- or debitcards, go get some cash at a ATM.

closed till 16. August of 2010 !

Shortage of flats in good areas, rents grow.
Berlin runs short on rental apartments in good and very good locations.

According to the federation of the housing companies and housing cooperatives of Berlin and Brandenburg BBU the vacancy rate with in the central located districts hit the crucial bench of “below 2%”

Charlottenburg (vacancy rate falls from 2,2 to 1,9 %)
Wilmersdorf (vacancy rate falls from 2,9 to 1,6 %)
Prenzlauer Berg (no change, but very low vacancy rate of 1,5 %)
Mitte without Tiergarten and Wedding (vacancy rate climbed from 1,6 to 1,9 %)

In all districts of Berlin the vacancy rate fall by 0.4% to a new 10 years low (3.5%), actually the lowerst since 1997 (3,3%). This rates reflects the number of 664.000 units managed by members of the federation.

The rents (netcold) climbed in 2008-2009 by 2,6% to 4,82 Euro/month.

About BBU:
The BBU is the federation of the housing companies and housing cooperatives with their place of business in the city of Berlin and in the federal state of Brandenburg. 368 housing associations, limited companies, joint stock companies and housing cooperatives are members of the BBU. Their housing stock comprises 1.1 million residential dwellings. Approximately 36 percent of the Berlin housing stock and 29 percent of the housing stock in Brandenburg is owned and administered by the members of the BBU.

Get the PDF here.

According to BNP Paribas Real Estate (BNPRE) Investment Market Report 2010 turnover in commercial real estate investments trippeled in Q1/2010 compared to the same period in the previous year. This is the highest quarterly turnover since 2 years.

For the Top6 Real Estate cities Berlin, Munich, Dusseldorf, Frankfurt, Hamburg, Cologne
BNPRE reports ca. 2.86 bn Euro compared to 0.66 bn Euro in Q1/2009.

Berlin again heads Big six

By Q1/2010 turnover by city:

Portfolio deals account for 30 % or 1.5 Bill. Euro
Singel deals account for 70 % or 3.54 Bill. Euro

Q1/2010 turnover by segment:
Retail/Shoppingcenter investments account for 57%*?
Office investments 26%

Read the full 48 pages German Investment Market Report 2010

Jones Lang LaSalle Retail Report Berlin:

Berlin remains stable even during times of crisis, as reflected by the
current situation on the retail property market.

Berlin Retail Ticker – 1st Half-Year 2010 – English

Berlin Retail Ticker – 1st Half-Year 2010 – German

spotting property out of foreclosure is demanding but rewarding. If you would like to know more about how to spot Non Performing Loan (NPL) / foreclosure property, what are the relevant websites and which serviceproviders you need to consult, please drop us a note by email and we wil get back to you as sson as possible.

According to Deutsche Startups (DS), a Berlin based company screening and reviewing the German startup market Berlin is internet startups darling. The original post (in German) explaining the database and the way DS chrunched the numbers can be found here: Gruender lieben Berlin.