Luxury real estate in Germany is booming and is undoubtedly profitable investment in the long term. Every year, the sale price of high-end properties in the Germany’s main cities shows constant growth and above all the demand remains much higher than the supply.
Like every market, the residential property market has several segments that meet specific housing or investment demand and satisfy all types of potential buyers. Berlin luxury property market segment is no exception to that. It is flourishing as it is backed by a strong local and international demand for luxury properties in the German capital.
- What defines luxury real estate in Germany?
- Best locations to buy a luxury property in Berlin
What defines luxury real estate in Germany?
A luxury property in Germany has specific characteristics that differentiate it from a standard property. This justifies a significant difference in the price, that could be up to 100% or even more, for some unique and most sought-after luxury apartments or penthouses. Every city has its own luxury estate standards, specific codes, and practices. In the following section, we will see in this article the specificities and standards of luxury properties in Germany.
Strong quality impression of the property
By definition, a high-end apartment or Penthouse would have a strong impression and unique impact on a potential buyer. A period property would have for instance unique charm attributes like stucco ornaments, authentic period wooden flooring, high-ceilings, large building entrance which gives it more intrinsic and historical value. On the other side, modern luxury apartments will distinguish by modern upscale fixtures, amenities, large exterior spaces, and state-of-art construction quality standards. In Germany, main premium features would be wood flooring, underfloor heating, floor-to-ceiling windows, large tiles, coffered large doors, double-glazed aluminum windows, electric shutters as well as brand sanitary elements. Many trendy luxury homes also offer services like connected parking plots and concierge.
Generous exterior spaces such as terraces and balconies are now core-criteria to luxury property buyers. The demand for large exterior spaces in apartments is burgeoning especially with recent lockdowns. A large terrace or balcony become a must-have for the bulk of luxury apartment buyers in Germany. Property sellers and developers in Germany quickly adapted to this market change and most of the luxury apartments for sale in Berlin offer a convenient exterior space.
Scarce availability on the real estate market
A luxurious good must be rare, and it is the rarity that justifies its value and sale price. The period properties inevitably come at a certain price level since these are unique and not duplicable. You can renovate a period property with some premium standards, but you cannot reproduce it elsewhere. So the quite limited number of opportunities to buy a luxury apartment in Berlin enhances in some way the scarcity of these prestigious apartments. On the other side, the modern luxury properties in Berlin have been built on last available land plots in the city center. The scarcity of available land plots and their booming prices emphasis with time this scarcity and make the properties increasingly worthy through time.
Property price level
In luxury markets the price complements the rarity. When a product is scarce and sought-after, the price would be necessary higher than the price of a fully available product. But be careful, just because an apartment is expensive does not mean that it necessarily meets luxury property standards. It must meet rather the criteria discussed above. To know if the price of an apartment corresponds to the property market reality, it is necessary to compare it with other similar properties in the market. Do the criteria for this property matches its asking price? In the luxury real estate, the quality, the amenities, and the features must justify a high price. If the property standards do not match with the higher sale price, it means that it is not a good purchase to make.
Top city location
This is the most important criterion for all property market segments as it is the first value factor in any property market. For luxury real estate, even more particular attention is paid to this criterion as the first focus is above-all the neighborhood in which the property is located.
The location must be in harmony with the property standards. Indeed, it is not only the property that must be of prestige but also its immediate environment. In this view, most of luxury real estate locations in the world are city hyper centers that are often also tourist attraction. That is why luxury real estate is usually located in prestigious neighborhoods to ensure a certain consistency. For example, buying in a luxury apartment in Berlin’s historic center, will keep the rental and re-sale value increasing through time.
Other property criteria
In general, vicinity of luxurious properties needs to offer a certain number of requirements such as good public transportation, shopping possibilities, places to go out like cafés and restaurants, green spaces, and cultural/leisure opportunities.
Berlin is no exception to luxury real estate standards in Germany or main Europe’s cities like Paris and London. A luxury property in Berlin should tick all the boxes in terms of living standards, market scarcity and market pricing markup. However, the specificity of the capital of Germany arises from the fact that the city was divided in the past and that location criteria have been changing drastically with the development of the East part of the city.
Best locations to buy a luxury property in Berlin
In every city, there are certain locations and districts where the purchase of high-end real estate makes more sense. In the luxury real estate category, some areas are even devoid of this type of property. We are going to see where the prestigious sectors are in the capital of Germany.
The development of the housing market in Berlin last years and the gentrification if some areas caused a partial shift of interest in luxury real estate from historically upscale areas in the West like Berlin Charlottenburg, Schöneberg and Wilmersdorf to new luxury areas like Mitte and Prenzlauer Berg. The impact of this market burgeoning includes today areas like Berlin Friedrichshain, Kreuzberg and Moabit where luxury new developments as well as renovations of authentic period buildings and industrial lofts is on fast track.
Areas for buying a period luxury property
Although the fact that in most areas Berlin have kept well-maintained period buildings, which make up the charm of the German capital, only few areas can claim the prestige period real estate market. The first area for buying a period luxury property in Berlin is definitely the triangle round the districts of Wilmersdorf, Charlottenburg and Schoenberg. Those areas where historically known since the 1900 for being representative of West-Berlin luxury real estate. In this way, finding a period apartment for sale next to Savigny Platz in Berlin Charlottenburg is definitely a great option. The distinguished living standards in the area and its international reputation would make the price of your apartment constantly increasing.
However, period luxury properties are also quite sought-after in the city’s East districts for some years. This is the case of various micro-locations like Kollwitzplatz in Berlin Prenzlauer Berg, or in Scheunenviertiel in Berlin Mitte. If you consider looking for an apartment for sale in Berlin Friedrichshain, Boxhagener platz or Spree banks could be an interesting option though the area is not historically reputed for high-end properties.
Areas for buying a newly-built apartment
When it comes to new property developments, the choice would be quite different. Indeed, the availability of land plots in several districts, has drastically changed Berlin luxury real estate market as it allowed the emergence of different modern luxury developments and contributed to creating new prestige market area hotspots. This Main new hotspots for buying a luxury property in Berlin are Europacity and Chausseestrasse zone in Berlin Mitte, the diplomatic districts and its surroundings in Berlin Schöneberg and Spree banks in Berlin Friedrichshain. Please have in mind that the demand is so strong in those hotspots that if you find an apartment for sale with the essential of your criteria, you should not miss the opportunity!
Compromise between period and recent properties
If you do not want to choose between the modern comfort of new developments and the charm of period properties, buying an attic penthouse in Berlin would be a great option. This is even more true that some of the attic penthouses are built on-demand and that with the help of an architect you can bring to life your design inspirations and fully customize your future upscale home in Berlin. Attic penthouses could be found in several city areas of the German capital. If you want to individualize the property, it’s better to be a raw attic, it’s less expensive and you can fit it with the help of an architect. Otherwise you go for turnkey project and buy a ready to move apartment.
How to quickly find the right luxury apartment?
In order to help you finding the right luxury property in Berlin, First Citiz team stays at your disposal. In this view, we offer an exclusive selection of high-end luxury properties in Berlin’s most sought after. In addition to that, we offer you a customized search service in order to find quickly your desirable luxury apartment in the Germany capital!
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