Low risk high yield properties in Berlin

Berlin is attracting more British investors with property prices currently 10 times cheaper than London, and lower than even those of main Central and Eastern European cities. Based in the UK, Alpha Real Estate Investments, the Central European property specialist, is launching a variety of lucrative opportunities for shrewd UK and Irish investors who want to capitalise on the property market in Germany’s capital with rental yields from 5.5 per cent.

After experiencing a staggering drop in housing prices since the early 90s, Berlin’s property market is springing back to life. The German capital and gateway between the East and the West is EU’s second largest city, with a population of 3.4 million, and numbers are growing. The largest names in international business and in particular the creative industries, IT, media and high-tech are discovering Berlin as one of Europe’s most competitive and attractive business locations.

Petra Gajdosikova, managing director of Alpha Real Estate Investments, comments: “No other property market in Europe offers such undervalued property prices, a solid rental market and attractive rental returns. After more than a decade of plummeting property values, prices have started growing again between 2005 and 2006. The timing now is excellent and it is no surprise the market has recently been receiving great attention from global investors and property funds, pouring over 50 billion Euros into German acquisitions. Germany offers unique potential for strong capital growth in the medium to long term.

“The strength of the rental market, coupled with higher yields than most other European cities and extremely low prices, make property in Berlin an excellent, low risk investment proposition. Amongst other healthy denominators, the key factor in placing Berlin top of the list is its domestic rental market.”

Compared to the UK, Germany has a strong rental culture and tenants tend to live in a property for many years. Therefore, they treat rented property as if it was their own, and this works to the advantages of the owner. Property is let without furniture or kitchens so tenants must provide their own.

Tenants are liable to pay for utility bills as well as any running costs of the property (including insurance, property tax, etc) and are also to deliver the property back to the landlord in the condition it was handed over to them upon vacating. This leaves investors to pay for the property and rental management fees.

Alpha Real Estate Investments is currently offering 15 newly renovated apartments in a beautiful period building, located on a quiet street near a popular park, in the highly desirable area of Prenzlauer Berg. One-bedroom apartments start at £30,000 and all units are let at a solid 5.5 per cent yield. Larger opportunities include a block of seven apartments and three business units in an established location of former West Berlin, with a seven per cent net yield return for £664,000.

Berlin is Europe’s third biggest tourist destination and a vibrant cultural hub. It boasts exceptional infrastructure, excellent public transport networks and three international airports with numerous daily flights from the UK and Ireland. The city has received massive investment in recent years, including 75 billion euros from the German government alone.

Alpha Real Estate Investments has been helping investors take advantage of the Central European property markets since 2003. The company, also trading as Slovakia Investment Property, is located in central London’s Oxford Street and is a proud winner the highest awarded prize at the Homes Overseas Awards 2006, in the category for Best Central and Eastern European Development.

For further information, visit alphare.net.