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May 14, 2013

Apartments in Berlin and Frankfurt have better yields than Munich


Last Updated: May 14, 2013
BERLIN - Apartments COST () YIELD (p.a.) PRICE/SQ.M. ()
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 126,750 538 5.09% 2,535 10.76
75 sq. m. 201,675 802 4.77% 2,689 10.69
120 sq. m. 396,720 1,462 4.42% 3,306 12.18
200 sq. m. 735,600 2,294 3.74% 3,678 11.47
FRANKFURT - Apartments
40 sq. m. n.a. 651 n.a. n.a. 16.27
75 sq. m. 261,225 1,057 4.85% 3,483 14.09
120 sq. m. 432,360 1,650 4.58% 3,603 13.75
200 sq. m. 1,020,400 3,064 3.60% 5,102 15.32
MUNICH - Apartments
60 sq. m. 297,900 976 3.93% 4,965 16.26
120 sq. m. 683,640 2,016 3.54% 5,697 16.80
200 sq. m. 1,571,200 3,372 2.58% 7,856 16.86
Berlin: Charlottenburg, Friedrichshain, Grunewald, Karlhorst, Mitte, Prenzlauer Berg & Wilmersdorf
Frankfurt: Bockenheim, Bornheim, Nordend, Sachsenhausen & Westend
Munich: Au, Bogenhausen, Freimann, Haidhausen, Lehel, Maxvorstadt, Neuhausen-Nymphenburg & Schwabing
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

For those who wish to buy or rent an old, but well-refurbished apartment, Berlin has more affordable options than Frankfurt or Munich.  For property investors it is also more profitable, despite Berlin’s continued residential price rises, in terms of rental returns - marginally more profitable than Frankfurt, considerably more so than Munich.

Munich is Germany’s high-cost leader, of course.  A 120 square metre (sq. m.) apartment in Munich costs around EUR5,700 per sq. m., while in Berlin it costs around EUR3,300 per sq. m., and in Frankfurt, the same sized apartment costs around EUR3,600 per sq. m. while in

Berlin’s higher yields come on the smallest apartments, and are caused by the fact that very small apartments are relatively cheap to buy.  So despite the fact that rents are the cheapest in Berlin, ranging from around EUR11 to EUR12 per sq. m. per month, returns on these small apartments are reasonable, at 4.77% to 5.09%.

In Frankfurt, rents range from around EUR14 to EUR16 per sq. m. per month. Apartments in Munich are the most expensive to rent, with rents ranging from around EUR16 to EUR17 per sq. m. per month.

Real estate investors, i.e., buyers of property for investment purposes, earn the highest rental return on their investment from apartments in Berlin or Frankfurt. Gross rental yields on apartment in Berlin came in first, because of those small Berlin apartments which earn as much as 5.09%. Gross rental yields in Frankfurt came in second, ranging from 3.60% to 4.85%. Rental returns for apartments in Munich range from 2.58% to 3.93%.

In terms of prices, both Berlin and Munich are up on last year.

All apartments included in the survey were located in the upscale residential neighborhoods of Berlin, Frankfurt and Munich.





Comments

#1 HUDA | April 17, 2010

please i want an apartment 120-200.sqm with minimum 3 rooms maximum 15 minutes walking to the center or 10 minutes by underground 3-4 stops.thanks

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