The coolest Berlin pads for sale

It’s long been the cool corner of Europe, now it’s also a good place to invest – here are some of the smartest property buys in Berlin

Berlin has the fastest rising property market in the world – and some gorgeous properties to boot!

With property prices up 20%, Berlin tops the table of 150 world cities when it comes to urban house price growth, according to a new report from Knight Frank.

The spike is thought to be due to a combination of low interest rates, a population boom over the past decade and foreign investment.

“It isn't surprising given the level of buyer demand the city has seen over the past few years,” says Achim Amann, co-founder of estate agency Black Label Properties, which advises buyers on investment opportunities in the city.

Property at a premium

“The growth of the luxury sector here is expanding rapidly, and prices are climbing much faster than anyone expected. We're seeing larger numbers of international investors who are willing to spend at the very high end of the property market, and that is great for Berlin’s real estate economy,” he said.

“The difference between Berlin and the other cities is that there is a huge shortage of apartments here and an ongoing influx of people moving to the city. Berlin's population has grown by 50,000 per year on average over the last five years and is now at 3.5 million.”

However, while property prices are still attractive to overseas buyers, compared with London and New York, the news is not so good for the city’s many inhabitants.

A new study from the Hans Bockler Foundation shows that there is a severe lack of affordable apartments throughout Germany – demand outstrips supply by 1.9 million across the country, and by 310,000 in Berlin – with those on local wages unable to afford the rising prices. Even rental prices have soared by 9%.

To try to redress the balance, laws are in place that allow German citizens to buy property with a 15% deposit while those that don’t pay tax in Germany will need to stump up a minimum 30% deposit.

Here are three hot properties to buy in Berlin right now.

New build apartments in Lichtenberg, Berlin. Prices start from €239,000 (£207,000), listed online with Zoopla

Apartments for sale in Berlin in Lichtenberg

This block of brand-new apartments in the up-and-coming neighbourhood of Lichtenberg, popular with young families, offers great buy-to-let potential. Apartments range from 67 to 250 square metres and each one comes with either a garden terrace or large balcony. Ready from April 2019, the bright and airy modern homes also feature parquet flooring throughout and benefit from underground parking.

Converted factory, Prenzlauer Berg €629,000 (£545,000), Black Label Properties

Prenzlauerberg two bedroom apartment for sale in Berlin

One of the things Berlin does really well is to find new uses for old buildings and here is a case in point. Built in 1910, the flat was once part of a factory but today it’s a contemporary 2-bed home with lots of period charm (check out the brick ceiling) and large windows that let in oodles of light. Talking of which, the southwest facing balcony is a sunny spot for a morning coffee. The apartment is well placed for exploring the flea market of Mauerpark and the other attractions amid the tree-lined streets of Prenzlauer Berg.

Classic Altbau apartment, Reinickendorf €189,500 (£165,000), Black Label Properties

Altbau apartment for sale in Berlin

This renovated 1920s studio Altbau apartment is located within the ‘White City’ of Aroser Allee – an architecturally significant housing estate that was awarded World Heritage Status by UNESCO in 2008. The whole apartment has been recently modernised with a new bathroom and high-spec built-in kitchen. Plus, it has new tenants and offers a yield of 3.48%, so you’re good to go.