_International property digest: Luxury city living in Berlin, Germany
When the then Mayor of Berlin branded his city “poor but sexy” in 2003 he set the tone for the German capital for the next fifteen years. Berlin certainly lagged behind other German cities in terms of wealth but what it lacked in high-end polish it more than made up for in its exceptionally dynamic artistic, cultural and after-hours life.
How times change. While the 50,000 people who move there every year clearly believe that Berlin still offers a hugely appealing lifestyle, the city is now a serious business base, attracting multi-national companies through to tech start-ups with an affluent workforce who have added a sparkling sophistication to its restaurants, shops, services and also its property choices. In short Berlin has become a fully-rounded rival to Munich, Hamburg or Frankfurt.
“Berlin’s workforce is young and well-educated with over a quarter of the working population employed in future industries,” explains Oliver Banks, Senior Negotiator at Knight Frank. “The city is a hub for innovation and tech. Last year it was in the top five start-up locations worldwide, competing alongside Silicon Valley, LA and London. At the same time the urban lifestyle on offer is excellent. Berlin is a green city with a modern infrastructure at the heart of Europe.
Attractive property prices
Prime property prices in Berlin have outperformed all European cities over the past decade, rising by 109 per cent compared with 39 per cent in Germany overall. And that’s a trend that looks set to continue with the latest Knight Frank European Cities Report predicting 6 per cent growth for prices this year, the highest of any European city.
Yet despite these increases, the value in Berlin property is undeniable. Homes there are still more affordable than any other major German city and up to two thirds cheaper than Paris or London. This value is evident across all price ranges, even at the highest level in the city’s latest prime developments.
Crown Princes’ Gardens and Sapphire are two developments that showcase Berlin’s new sophistication. Both are in the central district of Mitte and both have striking architecture and generous internal space combined with a high level of finishes rarely found until now in Berlin.
Crown Princes’ Gardens adjacent to the Berlin State Opera and the Crown Princes’ Palace has eleven buildings in carefully landscaped grounds with apartments, penthouses and townhouses. Six notable architects worked on the project, producing elegant and classical exteriors with efficient and thoroughly modern systems including underground parking and enhanced security features.
The two remaining homes, a two and a three-bedroom apartment, are priced €5,500,000 and €8,450,000.
Sapphire is a striking seven floor, 77-apartment building on Chausseestrasse designed by architect Daniel Libeskind, celebrated for his work on museums and public buildings in the city. The apartment and penthouse remaining for sale have seven metre ceilings, balconies and Libeskind’s trademark angular windows and diagonal lines. Prices are €1,775,000 for a 93.15 square metre one-bedroom with the three-bedroom 228.95 square metre penthouse at €3,950,000.
Mitte is the historic and geographic centre of Berlin with sites including the Brandenburg Gate, Museum Island and the Reichstag and is an established and popular residential location among wealthy, professional and international residents.
Thirty years after the fall of the Berlin Wall and twenty-nine since a reunified Berlin became the capital once again, the city is well on its way to being one of the world’s great cities with both the lifestyle and the properties to match.
For further information on Knight Frank’s prime Berlin properties contact Oliver Banks on the International Residential Development Desk.