yonge city square condos review.The city with the fastest rise in house prices in the world. House prices in Berlin, Germany, rose 20.5%, the highest in the world. The surge in population, rising rents and the influx of foreign investors are the three main reasons for the high house prices in Berlin.Please Visit: yonge city square condos review to Get Your VVIP Registration Today!
Four German cities made it into the 2017 list of the world’s top 10 cities with the biggest house price increases published by Knight Frank. Apart from the capital Berlin, Hamburg, Munich and Frankfurt are all on the list. Among them, compared with 2016, the house price of Hamburg increased by 14.1%, ranking seventh, Munich ranked eighth with 13.8%, and Frankfurt ranked 10th with 13.4%.
Berlin was closely followed by the Turkish coastal city of Izmir, where house prices rose by 18.5%. In third place was Reykjavik, the capital of Iceland (16.6%).
Earlier, in order to curb the sharp rise in house prices, the Canadian British Columbia government issued a new policy on house prices in the province, especially in the area where the capital Vancouver is located. The BC provincial government announced a 15 per cent property transfer tax on foreign buyers (except Canadian citizens and permanent residents). The tax rate is eight times higher than before. The effect of the new policy is also obvious, cooling the property market in the frenzied Vancouver area. Although house prices in the Vancouver area rose 16% last year, they have fallen out of the top three and ranked fourth, according to Knight Frank.
In addition, Hong Kong, China (14.8%), Budapest, the capital of Hungary (15.5%), and Rotterdam, the Netherlands (13.4%) are all the top 10 leading cities for house price increases.
Affected by Brexit, the increase in house prices in the British capital London slowed to only 2%, ranking 101st. House prices in Auckland, New Zealand, which was once highly hyped, also ranked 99th, with an increase of only 2.2% as a result of the government’s measures to curb house prices.
Knight Frank is not surprised by the eye-catching performance of Berlin house prices in its analysis. This is the end result of rising house prices in Germany over the years. House prices in Berlin have risen by an average of more than 120% since 2004, according to Knight Frank.
Behind the high house prices in big German cities such as Berlin is the influx of migrants. Berlin is already the most populous city in Germany. German media have previously studied the prospects of future population development in Germany’s big cities, which mentioned that Berlin, Munich and Frankfurt will be the fastest growing cities in Germany.
Over the past five years, the population of Berlin has increased by 50, 000 a year, and now Berlin has developed into a big city with a population of 3.5 million. Knight Frank predicts that Berlin’s population will grow by another 14.5 per cent by 2035, 13 times the German average.
Apart from demographic factors, prices in Berlin, which are already lower than in other major European cities, have become popular among foreign investors. Even though house prices in Berlin are rising by 10% a year, they still don’t catch up with New York or London. An apartment in central Berlin, for example, is 2% cheaper than an apartment in London of the same size and location. Therefore, it is not difficult to understand that foreign investors are flocking to the Berlin property market, whether it is the ordinary residential market or commercial real estate.
Just last month, Warren Buffett bought a high-end property in Berlin at a price of 3.8 million euros. On the German SouFun website immowelt.de, an apartment in Neuk ö lln, a fashionable new landmark in southern Berlin, sells for just 175000 euros, which is described by sales agents as “the most discerning investment”.
In commercial real estate, the Ontario Pension Investment Fund of Canada invested 1.1 billion euros in the Sony Center, a large Potsdam Plaza complex, in October last year. The Norwegian pension investment fund also invested 400m in the headquarters of Springer, Europe’s largest digital media group.
In addition, as the “Silicon Valley of Europe”, a large number of Internet companies have poured into Berlin, which has also driven the capital markets. Global Internet companies such as Google, Facebook and Amazon have set up branches in Berlin. Top investment companies in Europe and around the world are also looking for good projects and venture capital in Berlin. Therefore, when the development of the Internet industry attracts high-end talents from all over the world to Berlin, it is bound to promote the development of the local real estate market.
The Bundesbank has long been concerned about such a significant increase in house prices. In February, the Bundesbank warned of a possible bubble in the property market in big cities such as Berlin. The Bundesbank believes that property prices in many German cities are at least 15 per cent inflated, which could be as high as 35 per cent in Berlin.