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Berlin Property Market Shifts From Renters To Buyers

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Berlin property market shifts from renters to buyers - link

Berlin property market shifts from renters to buyers

A new property market report shows that more and more people are buying apartments in the German capital, squeezing out low-income renters. Investment groups are also making more large-scale "portfolio" purchases.

Berlin's property market is shifting inexorably from renters to buyers, putting increased pressure on the German capital's cramped rental market, according to the state government's latest property market report. In many inner city districts, there are now more apartments for sale than to rent.

The new report, published Wednesday, shows a 53-percent increase in the number of conversions from rental properties to owned apartments, and a "soaring increase" of such conversions in central districts like Kreuzberg, Charlottenburg and Schöneberg.
"The massive increase in turnover shows there is an outright run on apartments and buildings in Berlin," said local Left party Bundestag member Caren Lay. "Capital is fleeing to property following the financial market crisis, and profits are being turned due to low interest rate policies."

Looks like the BTL parasites have found themselves another host.

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All Central Bankers are drinking the same kool aid. Drop interest rates to fire up HPI, deny responsibility for housing market except if there is a sign of HPI dipping, then step in and drop rates a bit more. Rinse and repeat across the whole of Europe, what could possibly go wrong.

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The next bubble?

Hasn't germany got a really well regulated rental market which is the envy of renters in the UK?

I have often read about how great the German housing model supposedly is, which is why the article caught my attention. Seems not to be the case.

The article links to another piece, which talks about rent controls and the problems the system is causing - http://www.dw.com/en/study-germanys-rent-cap-fails-to-cap-rents/a-19263466

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