Apartment building with a guaranteed yield of 4.2% in Berlin, Germany

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Apartment building with a guaranteed yield of 4.2% in Berlin, Germany

10,570,000 €
4,804 € /m²
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  • Total area
    2,200 m²
  • Yield
    4.2%
  • Rental rate (m²/month)
    21 €
  • Completion in
    2022
Details
Property parameters
  • Leasable area: 1,800 m²
  • Land area: 1,500 m²
  • Total apartments: 40
  • 7-floor building
Financial performance
  • Minimum owner's capital: 10,326,000 €
  • Annual income: 445,000 €
Tenants
  • Fully let
Transaction costs
  • Notary (state registration): 1.5%
  • Acquisition tax: 6.0%
  • Broker: 6.0% + VAT

The apartment building construction project in the Köpenick district of Berlin.

Description

Three seven-storey buildings with a leasable area of 1,800 m²:

  • about 40 fully furnished service apartments with an area of 1,600 m². All apartments offer fully equipped living rooms, bedrooms, kitchens, bathrooms, balconies, and a workspace with internet access.
  • 3 commercial spaces of 200 m².

Completion date: 2022.

Financial performance

The annual income is about € 445,000.

The yield is 4,2%.

Tenants

Advantages

  • Above-average yield: more than 4% p. a. vs. 2–3% if rented for a long term
  • High liquidity: residential real estate has high liquidity
  • Problem-free maintenance: a management company will be in charge of all issues related to the property and its tenants
  • Forward Deal: the buyer doesn’t have the development risk
  • Share Deal: the ability to avoid paying tax on the transfer of ownership
  • Location: the proximity of the Adlershof technology park, the airport and a hospital

Transaction costs

Notary (state registration) is 1.5–2%.

Acquisition tax is 6%.

Brokerage fee is 6% + VAT 19% (total 7.14%).

Location

The property is located in the south-east of Berlin, in Köpenick district and is very well connected to local public transport. The bus and tram stop is only 300 meters away. City East and West can be reached within 30 minutes. The Adlershof Technology Park can be reached by car in 10

minutes, with public transport it takes about half an hour. The proximity to the Adlershof technology park makes the property extremely attractive for business travelers and technopark employees. Facilities for daily needs as well as the historic city center and Köpenick Castle are located in the immediate vicinity.

Berlin is the capital and largest city of Germany by both area and population. Its more than 3.5 mln inhabitants make it the most populous city proper of the European Union.

Many German and international companies have business or service centers in the city. For several years Berlin has been recognized as a major center of business founders.

  • Property on the map
    Location right down to the building, street or city
  • Other properties
    Other offers nearby

Tranio helps to manage property after purchase

Our local team at Tranio in Germany will take up property management or recommend professional German partners.

Find out more
  • icon Property maintenance and insurance
  • icon Search for tenants, contracting, and control over rent collection
  • icon Arrangements for bookkeeping and tax advice

Сonstruction loan as an alternative to commercial property investment

Developers with a good track record that give warranties or procure a record in the land register.

There is no need to incorporate a legal entity or open an account in Germany.

No extra charges to maintain or operate the property.

Comparing a apartment building purchase with a construction loan

Investment vehicle
Apartment building
Construction loan
Yield per annum
4.2%
8—10%
Investment budget
10,570,000 €
from 300,000 €
Buying expenses
10—15%?
  • 1 – 1,5 % — lawyer
  • 2,3 – 3,2 % — notary and state registration
  • 3,5 % – 6,5 % — acquisition tax
  • 3-6% + VAT — broker's fee

Percentage of the property value

0—2%?

The expenses on an independent legal review of the project

Investment term
from 5 years
to 3 years
Risk level
Low
Moderate
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