Deutsche Bank: Berlin can become one of the most expensive metropolises in Europe

Rental- “super cycle”:Berlin can become one of the most expensive metropolises in Europe

Renovated old building facade in Berlin

Historic facades in Berlin: According to an analysis by Deutsche Bank, rents in Berlin are likely to continue to rise.

Photo:

picture alliance / dpa

Berlin –

According to Deutsche Bank expectations, rents and purchase prices for apartments in Berlin could rise for many years to come. Many factors point to a “super cycle” well beyond 2020, it said on Tuesday in a contribution from the institute’s own research institution Deutsche Bank Research. The city could become one of the most expensive German and European cities.

Analysis by Deutsche Bank: Berlin’s economy is growing fast

Reason is that the once cut off Berlin quickly catch up economically and create new jobs, especially in knowledge-intensive and future-oriented sectors. “Therefore, it would be no surprise if in the long term the Berlin job market not only one, but even overtook the West German metropolises,” writes analyst Jochen Mbert.

Analysis by Deutsche Bank: Rents and purchase prices in Berlin continue to rise

“This development provides an excellent basis for the housing market.” It is taken into account that, according to the bank’s data, rents in the portfolio in 2018 were no longer as strong at 3 percent as they were in 2016 (7 percent) and 2017 (11 percent). However, according to the Senate forecast, many new citizens still move into the city, while there are not enough new apartments. (AP)