Berlin property prices are currently below even those of Prague, Budapest and Warsaw
Residential property investment right in the middle of Berlin, luxury apartments, penthouse and townhouse residences
Chorin Yards in the Mitte district of Berlin represent a great investment opportunity. A plot of almost 6,000m² will become home to nine buildings with 100 townhouse, penthouse and apartments that blend understated luxury and the atmosphere of one of Berlin’s most exciting districts into a breathtaking mix.
Apartments in Berlin currently represents the most attractively priced property for sale in Europe. Consequently many private equity funds and investors, who believe the property market to be trading at a significant discount to other comparable western European economies, have already invested billions of Euros.
A large majority of Berliners (across all social classes) live in rented accommodation, mainly apartments. Only 14% of Berlin’s population is owner occupiers. This is not only extremely low by EU standards but also significantly lower than the 42% home ownership rate in Germany as a whole. The resulting strong rental market presents an excellent opportunity for a buy-to-let investor looking for reliable and secure rental returns.
There are early signs of increasing willingness of the local population to purchase their home, as well as growing numbers of Germans looking to buy a rental apartment as a long term investment and pension investment. The current low owner occupancy rate in Germany mirrors the situation in the UK, Ireland, Spain and other EU countries 10-20 years ago. Today up to 80% of Irish, UK or Spanish population own their own home. There is no reason to doubt Germany will see similar development in coming years.
Why Chorin Yards
- Prime location in the center of Berlin
- Berlin is considered to be trading at a significant discount to other comparable western European economies, meaning an outstanding potential for capital gain.
- The stable and strong rental market, for short term and long term rentals reflects solid yields and the return on investment (ROI) potential.
- The stunning architecture and the luxury design with very high finishing using exquisite and modern materials as well as state-of-the-art technologies.
- Impressive range of residence types: from 1 bedroom 40m² apartments, to 5 bedroom 219m² penthouse residences and 5 bedroom 238 m² townhouse residences
- Almost all residences have a balcony or a terrace
- Owners have a choice of bathrooms and flooring
- Owners can change floor plans, e.g. a 2BR into a 3BR
- Attractive payment schedule
- Finance is available
- Freehold ownership
Location
The Chorin Yards is located in the Mitte district, bordering the Prenzlauer Berg district and will be accessible from Choriner Strasse and Zehdenicker Str.
Advantages of this location include short distances to Hackescher Markt, public parks as well as the nearby, hip quarter of Prenzlauer Berg.
All establishments needed for everyday life are within walking distance. There are also four buildings which will feature commercial units, including retail outlets, on the ground level floors.
Urban public transport stops (U-Bahn, S-Bahn, bus) are located in the immediate vicinity.
The Residences
The planning of the apartments, penthouse and townhouse residences at Chorin Yards was assigned to four experienced architectural firms, which has given the project its unmistakable appearance by way of different façade designs in combination with the landscaping of the courtyard.
Appealing sizes and various designs are the hallmark of all buildings, some flats are even built as maisonettes (on two levels) and there are townhouse residences available. Living space sizes vary from approx. 50m² to approx. 220m² in 6-room flats. Almost all flats have a balcony or a terrace. The penthouses are allocated part of the rooftop space for use as an attractive roof deck, while the town houses feature their own rooftop terraces.
Bathrooms are fitted with bathtubs, shower and sinks. Flooring is oak parquet or a boat deck layout, all of the highest quality.
Floor plans are flexible which means that you can buy a 120m² 2BR apartment and change it into 3BR, etc.
| UNIT TYPE | LIVING AREA* | PRICES FROM: | |
| Apartments |
|
||
| 1 bedroom | > 40m² | €112,740 | |
| 2 bedroom | > 100m² | €297,359 | |
| 3 bedroom | > 149m² | €418956 | |
| 4 bedroom | > 138m² | €374,670 | |
| Maisonettes | |||
| 2 bedroom | > 150m² | €407,603 | |
| 4 bedroom | > 138m² | €374,670 | |
| Penthouses | |||
| 2 bedroom | > 118m² | €659,138 | |
| 3 bedroom | > 170m² | €948,925 | |
| Townhouses | |||
| 4 bedroom | > 226m² | €772,643 | |
| 5 bedrooms | > 239m² | €814,512 |
* Balconies calculated as 50% and roof terraces as 25%
The prices include VAT, currently at 19% (subject to change)
Parking place is priced at €32,000.
Furniture packages will be available.
The Facilities
The underground car park on the basement level comprises 86 parking spots for passenger cars. There will be cellars belonging to the residences in the different buildings and there will be spaces for 120 bikes.
The courtyard offers sufficient numbers of play areas for children.
Property and rental management services are available
Invest in Germany
OECD and numerous international institutions consider the German property market to be the world’s most undervalued. This is even more true for Berlin property. Property prices in the German capital are 30-40% lower than those in other larger (West) German cities. In fact, prices in Berlin are significantly below the construction cost. After a decade of falling values Berlin property reached an all time low in 2005. Since the post re-unification property boom prices in Berlin have dropped by 40-60%. In the current market a new apartment in Berlin costs 30% less than the same apartment in Munich. Moreover, international comparisons reveal Berlin property at an average price of up to 500% less than the average price in Paris and London. Berlin property prices are currently even below those of Prague, Budapest and Warsaw!
Only 12% of Berliners own their Property compared with over 20% in Hanover, Hamburg, Munich and Stuttgart, and 43% Overall in Germany and the trend is rising. These figures reflect a strong domestic market in Berlin for purchase a property.
Advantages for Investors
- In Berlin, the German capital, growth potential and a tremendous investment opportunity is forseen for the following reasons :
- Capital of Europe’s largest economy
- Seat of the federal government and numerous organizations
- Largest German city (3.4 million; nearly as much as Hamburg, Frankfurt and Munich combined)
- Base of countless multinational companies
- One of Europe’s most competitive and attractive locations for international firms - in particular in media, high-tech and IT sectors
- 3rd biggest - and growing - tourist destination in Europe
- Recipient of enormous investments in the last decade (over 75 billion Euros invested by the German government into Berlin’s infrastructure since 1998 alone)
- Excellent public transport infrastructure (including new Main Rail Station - the largest and most modern railway junction in Europe), 3 international airports serving numerous low cost operators, massive new Berlin Brandenburg airport to open 2011 with an initial 22 million passenger capacity to later increase to 40 million
- Historically low prices (properties being sold at less than their construction cost)
- Excellent value for money
- Very strong rental market; 86% of Berliners live in rented accommodation
- Rental yields among the highest in Europe
- Very low building activity over last decade coupled with increasing number of households expected to create a serious shortage of properties in coming 5 years
- Strongest population growth in coming 20-30 years (highest net immigration of any European city)
- Remarkable affordability (Berlin prices are lower than even those in Central Eastern European cities, yet incomes many times higher)
- Increasing interest of local population to purchase own home
- Planned introduction of German REITs to give a massive boost to the property market (expected 130 billion Euro investments)
- Extremely high capital growth potential (medium to long term)
Purchase Details
A 1% refundable deposit is required when reserving the unit. This is followed by seven stage payments throughout the construction period.
Completion is due to December 2010.
Freehold ownership.
Hot Properties Worldwide is an authorised sales representative of Chorin Yards
