'Crazy money' is driving the Berlin investment market, according to Steffen Pulvermacher, associate director of investment at Savills in Berlin.
'Crazy money' is driving the Berlin investment market, according to Steffen Pulvermacher, associate director of investment at Savills in Berlin.
'There is just so much capital chasing investment opportunities in Berlin,' he says. 'In the first three quarters of this year there were €4.5 bn in deals – that´s 90% more than in the same period last year.'
Savills is forecasting around €7 bn in deals in Berlin in 2015, Pulvermacher says. 'This shows just how far the market has come because now we are back to 2007 levels,' he says.
Berlin's strong office market is enticing investors, according to Pulvermacher, who cites low vacancy rates of less than 4% in many of Berlin`s various CBDs, a figure that drops to just 1% in some locations. The residential market, which boasts rental growth of around 15% a year, is also proving a draw.