Apartment buildings and residential and commercial buildings are a popular form of investment, they offer in cities such as Berlin, Cologne and Munich legally compliant revenue.

Most Germans live for rent usually in an apartment in an apartment building. Does this at least four residential units and to perhaps include one or more commercial units, one speaks of a residential and commercial building or apartment building. Apartment building because the owner will receive the rent from their tenants. If the property is fully leased and is it in a good position, it throws off regular monthly amounts for the owner. Separate owners, therefore, rarely from these investment properties. Most likely there are heirs, newly divorced or real estate companies that need capital to sell their property.

In a national comparison, Berlin is by far the most vibrant market for residential and commercial buildings. 1303 apartment buildings were sold in 2009 alone in the capital, was the first market report for residential and commercial buildings by Engel & Volkers. In second place at the following transactions by a wide margin Cologne and Leipzig. Here were 653 or 582 apartment buildings changed hands.


Residential and commercial buildings in Munich’s most expensive

The average price per apartment building in 2009 was, according to Engel & Volkers in Munich with 4.8 million euros, the highest, followed by Hamburg (1.78 million euros) and Constance (1.56 million euros). In Berlin, there are still some 1.5 million euros and counting. In Cologne, buyers have between one million and 1.2 million euros on the table to purchase an investment property. Usually the price ranges specified in a multiple of net annual rent, the rental income that is not operating and energy costs. “In Berlin, as the price paid is usually the current 14-fold,” says Rackham F. Schroeder, managing director of Engel & Volkers Commercial Berlin. Beat the cost of one broker, notary, taxes, the maintenance and administration on it, an apartment building to throw at the latest 25 years from just profit. “Under normal circumstances, there is no reason, then sell the property again.” That’s higher-priced cities such as Cologne and Hamburg otherwise, but it may take longer before the break-even point is reached, the prices in good locations in Cologne as early as 20 times.

Apartment buildings in Berlin

Also very popular with investors, the Berlin housing market. Above the average of 14 times, prices in the district of Charlottenburg-Wilmersdorf. The average offer prices peaked here last year, an amount of 1676 € per square meter, by far the highest in the city, such as the Housing Market Report of GSW and the brokerage house CB Richard Ellis showed. This was due not only to the high rents in the houses of the Empire, but also to the good income from the shops on the ground floor of residential and commercial buildings. The second highest prices per square meter of apartment buildings were paid an average of € 1423 in the district of Steglitz-Zehlendorf, followed by Spandau, which recorded a price increase in 2010: on average around 38 percent. The Housing Market Report also shows that investors should be wary of trendy districts. So the prices went back in 2010 for apartment buildings in much Neukolln described by eleven percent (compared with 2009) and with 843 € per square meter were the lowest in the entire city.

If the returns are likely to show a different picture. This easy to reach locations such as Wedding and Neukolln 9-12 percent, middle layers, such as cross-mountain 7 to 8.5 percent and prime locations such as Charlottenburg and Prenzlauer Berg 4.5 to 6.5 percent. This is partly as a result of excess demand. But on the other hand, in the popular locations also rent default much lower, as is the risk that the property is losing value. Currently, investors choose the middle path and therefore often buy residential and commercial buildings in central locations, where prices are lower than in good locations, but higher yields.

Anyone who puts his money in apartment buildings?

Among the buyers of investment properties are usually private to people who usually come from the region itself, the data of Engel & Volkers. Also, foundations and family offices, asset managers are called active interest in the home market. The buyer can choose the investment property as a safe haven for their money, or view it as a form of retirement to acquire real estate. They are usually capable of between one third and the full price to fund itself and therefore not as dependent on banks to ensure their funding.