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Why is Berlin a good place to invest in real-estate?

2011-08-10_AK: We will update this post soon, as the reasons why you should are much more than what we mention below.

Nevertheless we think there are reasons NOT to invest in Berlin as well.

Berlin is Germany’s political capital, and for a lot of young people artist and student as well as for intellectuals one of the hottest cities in the world. Just a few people are aware of the fact that the prices for real estate in the capital of one of the worlds leading economies are undervalued. Just recently I got an offer to buy a prewar-condo in one of the hottest areas in western Berlin Kreuzberg 61, so called Bergmann Kiez for 130.000 €/$ for a 2 Bedroom, 1 Living room, Bath and Kitchen (Space in total: 94m²)

Berlin used to be a divided city during the cold war. After the reunification the East-side of the side was more or less completely damaged. A special tax-deduction on real estate investments in the east part of germany trigger money into the wrong place but helped to get the market up and running. But still today you can find underdeveloped area downtown. Due to a capital bubble and a lot of “stupid-money” from tax-deduction seeker cased a lot of mis-investments, that is the reason why germany them self often are afraid about real estate investments in the East part of Germany.>

About the author: Alexander Korte is a Berlin based residential property developer and active real estate investor and co-owner of a brokerage & advisory firm.