​Berlin Home Prices Soar: Fastest growth of any major urban center
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To Germany, where a fresh survey shows that home prices in Berlin tops the list of the world's fastest growing property markets. Where do home prices in the German capital go from here and is it sustainable? CGTN's Guy Henderson reports from Berlin.
GUY HENDERSON KURFÜRSTENDAMM, BERLIN "Berlin property prices are booming. Consultancy Knight Frank says they went up - on average - 20.5% in 2017. That makes Berlin the fastest-growing market of any major urban center. If you bought a house in the German capital in 2004, it might well be worth 120 percent more today. Berlin's former mayor once described his city as 'poor but sexy'. We've come to see an apartment that certainly ticks one of those boxes."
Henning Kraak made his money in fashion. He owns this apartment and did it up himself. It's on the market for around 3 and a half million euros.
HENNING KRAAK GREY2GREY PROPERTIES "I know Berlin very well, I was here even before reunification. There were only the drop-outs from society which is a completely different atmosphere. So I feel the change we are having nowadays is a good one."
The consultant selling this place denies the market is a bubble waiting to burst.
ACHIM AMANN BLACK LABEL PROPERTIES "When you look at the difference between the rental and the property price there is a huge discrepancy. That is something the central bank is looking at. But if you look at the luxury segment, if you look at the normal property market - 3500k - people who buy properties usually have 10-15/20% deposit - they go with an interest rate between 1-3%, a long-term fixed interest rate. So there is no such bubble as you've seen in the US or London and other places where the price is always going up and down."
GUY HENDERSON BERLIN "The German government has tried to prevent overheating by, for example, introducing measures to restrict rental prices. But still reports of such strong growth led some 13,000 protesters onto the streets last month to demand that authorities do more. They'd not be the first city to ask: what else can - or should - be done? GH, CGTN, BERLIN."