The creation of a $40 billion German real-estate champion by combining Vonovia SE and Deutsche Wohnen SE is one such hardy perennial that could be

Is real estate investing a good deal in Berlin?

As Thassilo mentioned, the economic trends are favorable for a real estate investment in Berlin.

  • Population growth – Berlin’s population is on the rise and this growth is expected to continue during the next two decades. In December 2011 Berlin passed the 3.5 million mark of registered citizens. According to this forecast http://www.stadtentwicklung.berl… made by Amt für Statistik Berlin Brandenburg, the capital’s population is expected to grow to 3.752 million people, which makes up a 7.2% increase compared to 2011.
  • Rents – In 2012, Berlin has again seen increases in rents of residential apartments of 8%. In standard residential areas the rents increased from €6.20 to €6.70 per square meter, while preferred residential areas saw an increase from €7.60 to €8.20 per square meter. According to a recent article in TheLocal, rents are expected to increase another 10% in 2013 (Rents could increase by 10 percent in 2013)
  • Purchasing prices – The prices of residential properties in Berlin have seen a similar development. Compared to 2011, prices in preferred residential areas increased 8.8% to €1,850 per square meter, while those in standard residential areas witnessed an increase of 7.7% from €1,300 to €1,400 per square meter (Source: Immobilienverband Deutschland).

In conclusion, if there’s ever going to be a right time to invest in Berlin’s real estate, the time is now.

Sources:
Rubina Real Estate Blog
http://www.ivd-berlin-brandenbur…
http://www.stadtentwicklung.berl…