3 Investment y
A bubble, German style
Germany’ s house prices, 01 2007-100
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But Schulten does not believe that any of this will have an undue impact on either real estate prices or demand.
A new airport, opening in the southeast, will enhance the German capital’ s role as a gateway to eastern and western Europe even more so
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neighborhood to witness the‘ Bohemian creep’ is Neukoelln. Previously a working class district with a high Turkish population, the area became popular with students and artists attracted by the low rents over the last decade. Then, gallerists and
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café-owners followed suit. Also, property prices in Neukoelln have risen by over 25 percent since 2008. Berlin has also recently garnered a reputation as the Silicon Valley of Europe due to the number of technologic start-ups in the city.
“ Berlin is a creative city, full of ideas. It attracts young, hungry minds and always has. Volkswagen recently relocated their design department to Potsdam( a city 24 kilometres from Berlin) in order to attract these young creatives,” Schulten says.“ But, VW wouldn’ t be able to relocate any other elements of their production. Berlin has no real industry infrastructure. Similar to New York and Amsterdam, Berlin is a town for ideas, science, politics, fashion, and design.”
Middle Eastern investment is on the rise in Berlin’ s real estate
28 DORCHESTER April- 2013