How Brexit is impacting Berlin’s Prime Real Estate Market By Nemath Ali Posted in Berlin, Brexit, EichenGlobal, Property Investment, Property Management, Real Estate On 2. March 2018 How Brexit is impacting Berlin’s Prime Real Estate Market The UK’s decision to leave the European Union, for example, has given Berlin a boost, “People in London were waiting to see what would happen but now that we are talking about a hard Brexit [where the UK is set to leave the single market as well as the EU] it looks like lots of companies may move to Berlin, unless Britain decides to put really low taxes.”This combination of spectacular economic growth and political stability has also contributed to fuel the local real estate market, with the German capital acquiring a reputation as a safe haven. “Berlin has become the ‘go-to’ investment destination because, on the one hand, it is a very safe environment in Europe’s most economically successful country, and, on the other hand, you have very dynamic real-estate trends”. “Three to five years ago, it would have been impossible to find investors for Berlin property in New York or Hong Kong. However, the political and economic events of the last 24 months, be it Brexit, which nobody really anticipated, have really put the city on the map.” Real estate investors are eyeing up more predictable, lucrative places to put their money and Germany is proving a major draw. A survey released this week from auditing company PwC and the Urban Land Institute found that Germany’s Capital Berlin tops the charts as the most pleasing european city for investment and development potential. Berlin, Frankfurt, Munich and Hamburg grabbed places in the top six cities in the Emerging Trends in Real Estate 2018 report. Real estate investments (including commercial properties ) across Germany for the last year came to €68 billion, up from €54 billion last year. Germany has been a steady state for a long time now. With Berlin, people truly believe its going to become a major city. Brexit remains a live issue for many in Europe’s property industry. There is a strong consensus that it will be at least partly responsible for both investment and values falling in the UK during 2018, and rising across the rest of the European Union. Source : PwC Germany has a policy for non residents of European Union which invites them to invest in the construction and development sector. For Investment in Independent premises the policy is open for non Germans also. Currency and Exchange Control : As we know Euros are accepted across Germany so the rate of exchange and currency control will be done by authority. The below image portrays different cities and their investment in Real Estate Market Source :PwC Brexit drives Real estate Investors towards Germany over UK. Recent study reveals that Germany has overtaken the UK as the prime location of choice for young entrepreneurs and professionals to work. Brain drain continues to rise in UK as Brexit’s consequences are uncertain, whereas Berlin offers opportunities, especially for expats with great deal of work life balance. Indeed this contributes to rise in the demand for rental properties across Berlin. Berlin apartments for rent ranges from € 950 – € 1600 for 2-3 room flat in and around Mitte district (city center) of Berlin .