ELECTRIFYING BERLIN
As a melting pot of artistic expression and business, housing options are balanced in Berlin, and there are no restrictions for foreign buyers.
Author: Temitope Adereni
Berlin is the world’s fourth-largest economy and has become an epicenter for creative industries, tourism, and research. Over the years, the real estate sector has been strengthened by the emergence of startups, and population growth. PricewaterhouseCoopers’ report on real estate trends in Europe 2018, revealed that Berlin is one of the best places to invest in real estate in the world, pointing out its growing population and IT sector as well.
In 2020, while the corona crisis had had a toll on every business, Berlin’s real estate market was not spared. The demand for housing has been dampened by the low level of immigration. Also, as an adverse effect of the pandemic, there is a structural break in the way people work, and the demand for office spaces has drastically reduced. Regardless, following the real estate projections, the market is sure going to bounce back after the pandemic, as demand for properties has picked up again.
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Friedrichshain-Kreuzberg
Friedrichshain-Kreuzberg hosts a large population of young people. Major factors in play are the ease of commuting to other parts of Berlin, and accessibility to technology and leisure facilities. Consequently, many homeowners are renovating their old buildings to fit modern taste. Since the workforce constitutes a large number of young people, there is investment potential in luxury apartments and high-class office buildings. Penthouses for sale in Friedrichshain-Kreuzberg are priced between the range of €3,500,000 to €5,000,000. Apartments for sale, depending on the number of rooms, are valued between €330,000 to €1,749,900.
Charlottenburg-Wilmersdorf
Charlottenburg-Wilmersdorf is the hub of the upper-middle-class in Berlin and hosts several landmarks. It is famous for its recreational and tourist attractions, which draw a lot of visitors. Being a predominant commercial district, the biggest department store in Europe, Kurfurstendamm, is present and other upscale establishments. Areas such as Charlottenburg, Wilmersdorf, Grunewald, and Halansee are favourable places to buy properties. A villa is priced between €4,588,440 to €7,000,000. Depending on the number of bedrooms, apartments cost between €200,440 to €4,588,440.
Treptow-Köpenik
Compared to other regions in Berlin, the population density in Treptow-Köpenik is low. Nevertheless, it is a preferred location for a person looking to start a family in a tranquil neighbourhood with rural charm. Housing options are multi-family buildings. Adlersdorf is home to technology companies and research facilities, making it a perfect hub for young people. Other popular areas include Alt-Treptow, Planterwald, Baumschulenweg, Johannisthal, Bohnsdorf, and Altglienicke. On average, old apartments go for 3,520 EUR/m² while new ones are priced at 5,520 EUR/m². Family houses are offered at 4,250 EUR/m².
Steglitz-Zehlendorf
Adorned with picturesque green forest, Steglitz-Zehlendorf is the part of Berlin with the luxury highlights. It hosts the creme de la creme of the Berlin society, and rental prices here are high. Newly built studio apartments for sale costs between €600,000 to €711,900. Two and three bedrooms for sale attract up to €950,000 and can be as low as €445,000. Duplexes are pricey and can be as high as €2,490,000.
Tempelhof-Schöneberg
This district hosts classic architectural designs, and real estate is relatively cheaper, making it a perfect fit for younger families and singles. Tempelhof-Schöneberg is a lively area with a plethora of restaurants, bars, and major industries. A furnished three-bedroom apartment can be bought for €680,000, while a furnished one-bedroom
apartment is priced at €378,000. A well-built villa (duplex) can cost up to €1,485,000.
PricewaterhouseCoopers’ report on real estate trends in Europe 2018, revealed that Berlin is one of the best places to invest in real estate in the world, pointing out its growing population and IT sector as well.
Process of Buying a Property in Berlin
The key players in the Berlin real estate market include;
The Agent or Broker: Known as Makler, the agents are intermediaries between the property owner/property management company and the buyer. These agents can help to find a suitable property to buy and facilitate favourable communications.
Public Notary (Notar): The notar registers the property and transactions with the local tax office after paying the transfer tax.
Lawyer (Anwalt): The duty of the lawyer is to assess the sales contract and the transaction process. Generally, lawyers are the official translators of the contract terms and conditions.
Tax Consultant (Steuerberater): As a professional, the tax consultant is in the best position to explain the best fiscal situation when purchasing real estate.
Property Management Companies (Hausverwaltung): They also serve as intermediaries between the landlords and property buyers. Property management companies determine when there is a need for renovation. The first step to buying a property in Berlin, is to research prime areas in the city with a better advantage. Another way is to use online platforms with options to describe a choice property and budget. Once there is a house that matches the
details provided, a notification will be sent. After locating a property;
- Contact the agent and make a written offer
- Make a downpayment of 1% to make a reservation
- Contact the public notary to draw up the sale contract
- Discuss mortgage plans with your financial institution
- After receiving the draft, take two weeks off to reflect (this is compulsory)
- Sign the contract
- Notify the Notar to register the property
- Pay for the property and sales taxes
- Get your keys
Taxes and Fees
Apart from the cost of the property, buyers are required to pay an extra 15% for other fees and taxes.
Notary Fees: This is around 0.5% of the property cost
Real Estate Transfer Tax: Makes up 6% of the property price
Registration Fees: 1%
Real Estate Agent: Up to 7.14% (inclusive of tax)
ATTRACTIONS
Pergamon Museum
Hosting a vast collection, including the history of Ancient East, the Pergamon Museum is a historical wonder waiting to tell you the stories of the world’s notable treasures. Some of the artifacts in the museum date as far back as 2000 years ago. The museum was named after a marvellous feat of white stone architecture known as Pergamon Altar.
Brandenburg Gate
Brandenburg Gate was designed two hundred years ago by Carl Gotthard Langhans, who was inspired by the Propylaea in Athens’ Acropolis. As the only surviving historical gate in Berlin, Brandenburg Gate symbolizes the Cold War division into East and West. In recent times, the gate represents a reunited Berlin as more people gather to celebrate New Year’s Eve.
Berlin Botanical Garden
A museum of plants, Berlin Botanical Garden, sits on 43 hectares of land and displays over 1500 plant species and 14 greenhouse, one of which is over 100 years old. Although, the garden is usually closed during summer and winter, there are activities like Summer Concerts, Tropical Nights, Orchid Show, Botanical Nights, and Berlin Perennials Market.
Gärten der Welt (Gardens of the World)
Opened in 1987 to celebrate Berlin’s 750th anniversary, the Gardens of the world hosts ten international gardens. Here, you will find the Korean, Japanese, Middle Eastern, Christian-themed, Japanese and Balinese gardens, amongst others. The garden sets visitors on a memorable horticultural journey to different parts of the world.
