Berlin tops list as Europe’s most profitable real estate destination
Berlin has emerged as Europe’s most desirable real estate destination as investors prioritised stability amidst the pandemic-induced uncertainty of 2020.
A recent report by PwC on the outlook for Europe’s property markets in 2021 ranked Germany’s capital city at the number one spot in terms of “overall real estate prospects”, as investors bet on Berlin’s stable office market and upward rent potential.
The report found that the resilience of Germany’s economy to the ill-effects of the pandemic was bolstered by stringent public health measures and helped support all sectors of the country’s real estate industry: from flats to office buildings.
While Berlin has emerged as the clear leader, other European capitals like London and Paris, along with the German cities of Frankfurt and Hamburg, have also remained attractive to investors due to their status as financial centres.
A key trend that has supported these cities’ property markets is a return of investors’ interest to their local markets, as uncertainty and international travel restrictions persist. This has led German investors to invest in German cities, supported by innovative policies like that of the municipal administration of Berlin, which marketed the city as a “city of the future” in order to attract investors, residents and companies alike.