Investment in Berlin's property market reached a record EUR 4.3 bn last year, more than double the 2005 figure, according to a report published Thursday.by CB Richard Ellis. Foreign investors were the biggest buyers, ploughing a record EUR 3.3 bn into the markt and accounting for 76% of the total investment volume.
Investment in Berlin's property market reached a record EUR 4.3 bn last year, more than double the 2005 figure, according to a report published Thursday.by CB Richard Ellis. Foreign investors were the biggest buyers, ploughing a record EUR 3.3 bn into the markt and accounting for 76% of the total investment volume.
The charge was led by British and American investors, each forking out over EUR 800 mln for deals in the German capital. They were followed by the Spanish (EUR 300 mln) and the Danes (EUR 190 mln). Offices and mixed-use properties were most in demand, taking around EUR 2.1 bn or half of the total investment volume. Shopping centres attrracted some EUR 700 mln in investment, while hotels accounted for some EUR 400 mln.
'The confidence of international investors in Berlin's future has never been this strong, and the market is proving them right,' Fabian Huther, head of CBRE's Berlin investment team said. The biggest deal of the year was unquestionably the sale of the Wertheim site in Leipzig to Orco Gruppe, he said.
Open-ended funds were the biggest sellers in 2006, divesting properties worth over EUR 600 mln, according to the report. At the same time, the funds acquired properties for around EUR 50 mln. State property disposals totalled around EUR 200 mln.
