German market for luxury housing grows
As both the Frankfurt Algemeine Zeitung and the Süddeutsche Zeitung, along with Die Welt, reported, some 3,000 luxury residential properties worth a combined EUR 3.7 bln were sold in Germany’s top seven locations in 2014.
According to a report issued by Dahler & Company, this represents an increase of close to 25% over 2013. Dahler & Co. defines luxury residential properties as those that cost more than EUR 750,000.
Of the almost 3,000 luxury villas and apartments that changed hands in 2014, Munich had the most active market. The 920 transactions in the city were worth a total of EUR 1.2 bln (+41% YoY).
Germany’s other major cities also reported high demand, although supply often lagged behind. The number of luxury properties sold in Berlin actually fell last year. As reported by Dahler & Co., 468 luxury properties worth a total of EUR 595.4 mln swapped owners in Berlin in 2014. In 2013 there were 480 sales worth EUR 636 million.
The number of detached and semi-detached houses sold in Berlin last year was lower than during the preceding year, whereas condominium sales were slightly higher. Taken together, Berlin saw the weakest developments in comparison to the other six cities covered by Dahler & Co.’s market study.
Einar Skjerven of the Skjerven Group hasn’t budged in his positive assessment of Berlin’s housing market.
Skjerven is clear, “Apartments in any other modern metropolis, anywhere else in the world, are nowhere near as cheap to buy as they are in Berlin. The market still hasn’t reached equilibrium. Prices will continue to rise, maybe not as quickly as in the past, but they are still heading higher.”
Last year alone, Skjerven sold condominiums with a combined value of more than EUR 60 mln. Almost 40% of his buyers came to his company via Facebook. At Strausberger Platz in Berlin, Skjerven is looking for buyers for 170 apartments. He has made the neo-classical apartments ready for investors. Skjerven has a strong track record of selling apartments in Charlottenburg, Mitte, Friedrichshain and Prenzlauer Berg via his Part-B I mmobilien subsidiary. (www.Zitelmann.com)