Greeks warming to Berlin real estate
You don?t have to go far to find Greek cash. Go to Berlin.? This was the introduction to a program broadcast recently on Germany?s ARD network about Greeks buying property in the German capital, complete with syrtaki music playing the background.
The report, however, did not compare property prices in Athens and Berlin.
?These days an apartment in a decent Berlin neighborhood costs less than one in a rundown district of Athens,? Calliope Scherer, an Athens-based real estate agent who appeared on the German program, told Kathimerini in an interview.
A house in Berlin costs an average of 1,000 euros per square meter, according to the broker, making property an attractive investment for mid-salary earners.
?I keep getting phone calls from people who have put aside between 50,000 and 200,000 euros, and who are concerned about their savings,? said Scherer, who has been working in the Berlin real estate market for over a year.
In the Greek collective conscience, Germany represents economic security.
?The German tax system is straightforward and stable, while buying property is considered a good investment,? Scherer said. ?After all, most of the houses that are up for sale are already rented out.?
Despite the sensation caused by the German report, which suggested a flurry of sales, the actual number of houses purchased by Greeks so far is small. Just four houses were in fact purchased from Greece according to Scherer, though it is estimated that more have been sold through German agents.
?Interest has gone up since early September. More than 30 potential buyers have turned up, some of whom may travel with me to Berlin to check out the advertized properties,? Scherer said.
Prices are different in other German cities, the broker explained. Property prices in Munich, for example, are sky-high, but the German capital, on the other hand, is still seeing a lot of reconstruction work as a result of its lengthy division and allied bombings during the war.
?Most houses that are on sale were either constructed in the 1920s or 1990s, but in both cases they are recently renovated,? a prospective buyer, who spent time in Berlin as a student, said. Interestingly, Germans are not that interested in home ownership.
Needless to say, Greek interest in the German property market is open to different interpretations. It is not only motivated by financial interest — after all, in many cases Greeks can afford nothing more than a studio apartment. The urge is more psychological, as many people out there want to know they own assets abroad in case something goes wrong at home.
The Greek interest has met with surprise among Germans, who mostly see their eurozone peer as a poor relative.
?United we stand, is what I think,? Scherer said. ?Perhaps a big number of small investors can join hands to buy a supermarket or a block of flats. This would be to everyone?s benefit; also it would help change what the German people think of us.?
