Hi, Are Property Secrets thinking of getting into Germany at any point in time? Obviously there is no off plan market there but I for one would be willing to use PS for a resale buy as PS are a firm I trust over many others. With prices appearing to bottom out, as a long term investor I am seriously thinking of getting into the market here. Tom.

I would also be interested in purchasing property in Berlin if PS decides to offer it.

I'd be really interested too - it doesnt have to be a new development

Berlin is just not PS type of market because PS specialise in taking early positions in new builds, which are rare in Berlin. Berlin is more a secondary market, often to buy long-term securely rented properties. The buying costs are high, and the capital gain is much less dramatic than we have seen in some CEE markets, but (in my opinion) the risk is much lower too. I have been able to buy well below market value (good sourcing is crucial) and my properties are on a capital gain of 28% in 8 months. There is still really good value in the Berlin market and probably will be for a year or two yet

I have some SIPP money I am interested in investing in Berlin. I am more interested in residential than commercial. Does anyone know of any syndicates investing in Berlin residential property? Thanks.

Hi Guys Yes, PS is considering Germany - we are currently writing a Market Profile on the country - which will be a guide to the regions. My question is this - why is everyone so fixated on Berlin? When ever a topic starts on Germany (economy recovering, got to be a long term under valued proposition) it inevitable ends up with 'how do I buy in Berlin'? Anyone ever considered any of the booming Germany cities like Munich, Nuerenburg, Stutgart perhaps? Frankfurt the financial centre (okay, just starting to pick up) plus that Amsterdam like 2nd largest city of Hamburg? I get the argument for Germany - but I don't get when that automatically has to translate into an argument for Berlin? Population continues to move west (from old east Germany) and then south - concentrating on the southern boom cities). Why just Berlin? Cheers Neil

Neil, I am currently in Berlin and to a large extent you may be right. The city (especially the East) is deserted. The city could quite easily accomodate 30% more people. The underground system is about 20% full on average.

Probably everyone has been fixated on Berlin, because relative to the other western German cities, especially Frankfurt Munich and Stuttgart, Berlin does appear very undervalued. I think there are good reasons for this, including the fact that Berlin has relatively high unemployment and low per capita incomes with respect to other western cities. Even now, Berlin is by far from being the capital of Germany in economic terms or even cultural terms (ref Frankfurt and Munich) and cannot be compared like London is in the light of the UK I know the former GDR with it's current depopulation looks very bleak from investment viewpoints, taking a moderate-long term it could pay off handsomely eg in 10-20 years time, the people who were significantly affected by the GDR in terms that it impacted their working life will be towards retirement, and the younger people will have little comprehension of the realities of the divided country. Thus the ex-GDR may well grow significantly from a low base

Berlin is very tempting, just because of the prices of some of the fabulous old apartments compared to other cities. The trouble is...people keep trying to compare it to London "this apartment in Charlottenburg is like getting a flat next to Hyde Park for £70,000...it's going to be worth £250,000 in 10 years". Based on what? Berlin's the capital, but it's not the financial, manufacturing or engineering base of the country, so is highly unlikely to rise in London terms. Germany almost has a state system in the way business is divided up..it's just not magnetive in the way Britain is towrds London. Southern areas (between Stuttgart and Munich especially) have huge numbers of migrant workers in highly paid jobs forming their own communities. It just "feels" healthier for a surge in capital growth.

Okay guys - how about Vienna then? Pratically no property price growth - classic beautiful city - bound to grow/ price jump a certaintly? Cheers Neil