An alternative to a savings account – supplementing your retirement planning
Additional reasons for these historic price increases are comparatively minimal construction activity, increased international interest, and low interest rates. In 2015, only 10,000 apartments were built in Berlin; the demand lies at around 23,000 apartments, and the difference accumulates over the years.
The potential lying in the supply gap that’s existed since the mid noughties was initially recognised by private equity companies from the United States and only later by private investors in the course of the financial crisis.
Since the early 2010s at the latest, flats in Berlin are increasingly being purchased as part of private retirement planning.
Buyers are benefitting from low interest rates, currently around 1.5 percent for ten-year loans; at the moment, we’re in a situation where monthly rental income covers the interest costs of a flat purchase, even one financed mainly through a loan. The possible additional repayment thus works like a savings agreement at the end of which a considerable asset and capital gain will have been achieved.