The Berlin property market - Prices for flats in renovated historic buildings (ca. 1,200 – 2,500 Euros/m²) in desirable areas of Berlin are the lowest they’ve been since the mid-1960s. - Rental prices are rising – currently around between 4.50 – 9 Euros (per m² excluding utility charges), this is even more so the case for renovated historic apartment buildings. - Large selection of property on offer. - Very affordable credit with rates of approx. 4% - Over the last few years competition between construction firms has increased, meaning lower renovation costs and better quality. - Despite a drastic reduction in state subsidies in the renovation of historic buildings, there continue to be numerous tax write-off opportunities as well as subsidies in the area of historic preservation. Outlook: - Rents are set to rise. - According to the analyses of well-respected market analysts, the trough has been reached regarding Berlin property prices. - The financial consultants Plansecur believes the Berlin market will benefit over-proportionally in the long-term thanks to its status as German capital and EU enlargement. This is true for the development of both rental prices as well as property prices. - The football World Cup 2006 held in Germany will provide an additional boost. - Reforms introduced by the government over the last few years will begin to take effect and have a positive influence on the economy – which will in turn boost the property market.