Growth in Berlin During Brexit

German properties continue to gain during Brexit. Even the rentals are constantly increasing in the city, and property is rather unaffordable for the local buyers. Germany offered easy citizenship to Britons during Brexit, although the country does not allow dual citizenship.

It treats Britons as citizens during the transaction phase. There are provisions where the people who lived for more than five years in the country will be given settled status and citizenship benefits such as pensions and healthcare.

During Brexit, Berlin offers opportunities for a commercial investment where rents are growing for the small and midsize tenants. The markets of Germany are transparent as compared to China. 

China's development declined from 7 to 4.5 per cent in 2017, and in the US, home costs rose 6.3 per cent in 2017, where Seattle indicated the most elevated development of 12.7 per cent – according to Knight Frank reports. 

Investment Inflow in Germany 

BR-NAS bought office space for 30 million euros in Germany, Düsseldorf and Essen. Finnish fund Ilmarinen invested in Berlin, Amsterdam and US. Deutsche Industries bought three industrial properties in Berlin – (Schleiz on Munich motorway, Bremen and Lower Saxony, Shortens for 8.05 billion euros).

Dentan entered a partnership with real estate company René Dubois to enhance business in German real estate. Swiss company Swiss Life will buy Berlin-based BEOS to enhance its branches in mixed real estate business – office space, manufacturing and logistics. 

Singapore wealth fund purchased properties in GIC Pte in TechnoCampus Berlin with the partnership of a local company for a project that transforms ageing buildings into office space.

German property fund investment increased in 2017 by 50 per cent, and at least 13 German open-ended funds are targeting institutional and private investors to invest in the country during Brexit volatility (as evaluated by Scope). In 2017, the total investment in Germany was 2.3 billion euros. 

Inflation rose by at least 80 per cent in the leading cities of Germany in the past decade, as per the statistics released by the Deutsche Bank. The apartment rates in Munich doubled, while, in Hamburg, it is growing at 70 per cent.

Germany shows some of the highest growth, while UK properties are slowing in some regions. Hong Kong and Vancouver are other growing cities.

Low-interest rates, more jobs and growth in population in the top cities are the key reasons for the rise in property prices leading to shortages where the city, such as Munich's population grew several thousand in comparison to the available house units in Germany.

In Berlin, the prices grew 20 per cent y-o-y, and on average, the rates of properties in Frankfurt, Munich and Hamburg grew 13 per cent in the last year.   

German office space prices are growing, and the price of commercial real estate in German submarkets also increased. The growing demand from investors has increased office space's price three times in five years. In addition, the welcoming visa and settlement options increased the inflow of young tech workers in the country. 

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