Since the key points of the resolution to cap rent increases in Berlin were approved on 18 June 2019, the real estate agent Grossmann & Berger has brokered transactions to a volume of over €100m for rental apartment houses in the German capital.
Law on maximum rents in Berlin boosts sales of rental apartment houses
“The resolution on maximum rents which became law in Berlin at the end of January freezes most rents on the level of 18 June of last year. In 2019 its approval already persuaded numerous owners to sell their investment properties in Berlin”, Axel Steinbrinker, managing director of Grossmann & Berger explains. From June 2019, the real estate service company succeeded in brokering these properties in Berlin by the end of the year in spite of the changed market situation.
Portfolio transaction in Berlin brokered
The properties included a portfolio of rental apartment houses with a total of eleven buildings from a family office in Hamburg. Most of the portfolio of ten rental buildings, 348 apartments and 20 commercial units is situated in Berlin. It consists of three multi-family buildings and seven combined residential and commercial properties scattered over the districts Wedding, Moabit, Neukölln, Tempelhof, Alt-Treptow and Friedenau. A further property from the portfolio is in the Winterhude district of Hamburg.
Price/earnings ratio of up to 52 achieved in Hamburg
In Hamburg, Grossmann & Berger brokered properties for up to 51.7 times the annual net rent. The rental apartment house for which the real estate agent negotiated this price is situated in Eppendorf, not far from the University Medical Centre (UKE). In the past two years the company, a member of the commercial network German Property Partners
(GPP), has achieved a transaction volume of over €500m in the residential investment / rental apartment house sector.