Investor Warren Buffett's real estate arm has entered into a franchise deal with a firm that sells high-end Berlin apartments. But one property analyst told DW that the billionaire may have missed the property boom.
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Often hailed as the world's greatest investor, American business magnate Warren Buffett has agreed a franchise deal with Berlin's Rubina Real Estate, a company that helps international investors from China, India and the Middle East to buy upscale residential property in the German capital.
Rubina said in a statement that the agreement with Buffet's Berkshire Hathaway HomeServices, for an undisclosed sum, "complements our real estate agency network perfectly."
The Berlin property agency sells apartments in sought after locations of the city such as Mitte, Köpenick or Zehlendorf, where a luxury three-bedroom apartment can set you back more than €1 million ($1.24 million).
The deal allows Rubina to leverage the Berkshire Hathaway brand name, and is likely to be seen as a sign of continued confidence in the Berlin real estate market, which has undergone a huge property boom over the past decade.
Berlin's new West glitters
With new investments pouring in, the area around the Kurfürstendamm has changed. It's been worth it. The West is once again a center of attraction and pulls in visitors with numerous shopping and dining opportunities.
Image: picture-alliance/dpa/M. C. Hurek
City West
When the wall was still standing, the area around the Kurfürstendamm was the cultural center of West Berlin. After reunification, locals and tourists moved to the exciting east. Nowadays the City West shines with high-rise buildings such as the Upper West and the Zoofenster. With the historical Bikini-Haus (right) it makes for an attractive urban quarter, built up around the memorial church.
Image: picture-alliance/dpa/M. C. Hurek
Zoofenster
At 118 meters and 32 floors, the skyscraper in the center of the City West stands out. In 2011, the first Waldorf-Astoria-Hotel in Germany was opened, offering 182 rooms and 50 suites overlooking the Berlin skyline. The name “Zoofenster” was inspired from the opposite Berlin Zoo.
Image: picture-alliance/dpa/P. Zinken
Shopping with a view at Bikini-Haus
Visitors can look directly into the monkey enclosure of the Berlin Zoo in the Bikini-Haus. The historically listed building on Budapester Straße was reopened in 2014. Gastronomy options and shops with an exceptional assortment invite you to browse around.
Image: picture-alliance/Zumapress/M. Cohen
Monkey Bar
In addition to the 25 hours hotel, a designer hotel with jungle flair, the Bikini-Haus accomodates the trendy Monkey Bar on the tenth floor. Here you will find cocktails and a very large selection of wines. Refined fusion cuisine from the neighboring Neni Restaurant can also be ordered. Regular events make the bar a hotspot - including views of the city and the zoo.
Image: 25hours Hotel Company
Berlin Zoo
As the most prominent guests of the Berlin Zoo, the pandas Meng Meng and Jiao Qing have been staying in the specially built bear house since June 2017. Visitors are still lining up to see them. In addition to the zoo in Charlottenburg, there is also the extensive animal park in Friedrichsfelde.
Image: RBB
Zoo Station
During the division of Berlin, the station was Berlin's most important traffic junction in the West. Since the opening of the new main station near the government district in 2006, only regional and suburban trains have stopped here. Modernisation work has been done since February 2015. The name of the place was also given by the book "Wir Kinder vom Bahnhof Zoo".
Image: picture-alliance/dpa/S. Stache
Zoo Palast Cinema
Not far from the train station Zoo, the traditional cinema Zoo Palast sparkles. Since 1957 it has been the main venue of the Berlin International Film Festival, until it closed in 2010. For three years, the opulent halls were renovated and extended by five new venues. And since 2014, the red carpet has been rolled out in the Zoo Palast for stars of the Berlinale.
Image: picture-alliance/dpa/J. Kalaene
Kaiser Wilhelm Memorial Church
The once splendidly decorated Memorial Church was destroyed in the Second World War. Today, its damaged tower is a monument against war. Over 20,000 panels of stained glass make up the walls of the blue shimmering modern Church, consecrated in 1962. The attack on the Christmas market on December 19, 2016, where 12 people died, took place here at Breitscheidplatz.
Image: picture-alliance/Chromorange/I. Schulz
C/O Berlin
Since 2014, the internationally renowned Gallery for Contemporary Photography has been based in the legendary Amerika House on Hardenbergstrasse. Every year, up to 20 individual and group exhibitions of important photographers are held. The architecturally interesting building was built in the 1950s as a center for cultural exchange with the USA.
Image: picture-alliance/dpa/P. Zinken
KaDeWe
Luxury has a long tradition in West Berlin, and not only at the Ku'damm. Top brand shops are scattered throughout. The department store Kaufhaus des Westens in Wittenbergplatz has been a Berlin institution since 1907. With more than 60,000 square meters, it is the second largest department store in Europe after Harrods in London. World-famous is the delicatessen department on the 6th floor.
Image: dpa/Kadewe/A. Morela
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Average property prices in the city have jumped 120 percent since 2004, and have risen by more than a third in just three years, while respected real estate analysts continue to cite Berlin as one of Europe's top real estate hotspots.
Rubina Real Estate CEO Carston Heinrich hailed the deal, saying that "demand for premium real estate ... not only brings capital into the city, but also networks and international influences."
Berlin will continue to become "increasingly important as an economic metropolis, as a lifestyle hotspot and as "investor darling,'' he predicted.
Missed the boat?
But one analyst warned the renowned US investor might have missed the biggest investment gains, because several recent studies have suggested the Berlin market is overheated and is either due or in the early throes of a correction.
"If he [Buffet] is joining the party now, he's too late," Steffan Sebastian, a professor in real estate finance at the Regensburg-based IREBS International Real Estate Business School, told DW.
Sebastian agreed if the billionaire investor's franchise deal signals that Berlin real estate is still a good idea for international investors, "many, many people will follow."
But he warned that it may be a false signal, as years of runaway demand for residential property in Berlin, as well as Munich and Frankfurt, begin to subside.
"I'd maybe give it two years, but probably not five," Sebastian told DW, conceding that due to complexities in the real estate market, growth could still have some way to go.
The latest spring 2018 investment report from German Property Federation ZIA backs up his view, suggesting that Berlin's housing supply is loosening up, while inward migration has noticeably slowed, which will both likely have a cooling effect on prices.
But Rubina's Heinrich said Berlin remained "the European boomtown, and that compared to other cities like London or Paris, real estate in the German capital remains an attractive investment."
Backing up Heinrich's assertion was a report released in January by Germany's largest lender Deutsche Bank, that predicted demand for housing in Berlin is likely to remain high beyond 2020, thanks to what it said would be a population growth of 250,000 over the next 15 years, and an increased desire by residents to acquire their own homes.
Home ownership rates are much lower in Germany than in many other countries; in Berlin it's just 15.6 percent, according to the 2011 census.
The tie-up between Berkshire Hathaway and Rubina is unlikely to sit well with many Berlin residents, who blame property speculators who chase high returns for annual rent rises that have averaged five to seven percent in recent years.
10 places to stay warm in wintertime Berlin
What do you do when it's freezing cold outside? Simply move sight-seeing activities indoors - which in Berlin is no problem.
Image: picture-alliance/SPA
Go for a stroll
Potsdamer Platz in the center of Berlin offers several attractive ways of escaping snow or rain. Here you can go shopping and there are restaurants, bars, museums and cinemas. Everything nicely packed into the same place. Nothing could be more convenient. The ceiling of the Sony Center in its own special way offers protection from bad weather.
Image: picture alliance/dpa/W. Stein
Be awestruck
The Berlin Film Museum is also located on Potsdamer Platz. It is one of over 170 museums in the city. In a clever architectural layout it presents film technology and film history. One room is dedicated to a grand lady of Berlin: Marlene Dietrich. In 3 rooms you can view film and show costumes, accessories, photos, jewelry, luggage and even love letters. Very romantic!
Image: picture-alliance/SCHROEWIG/News & Images
Escape into a dream world
There is no better place to escape the grey of winter than a cinema. In no other city are there this many movie houses - or so varied big movie palaces like the Zoo-Palast (pictured), small independent film houses and, of course, the big cinema chains. It's not just the films, but also the cinema architecture that make an impression on visitors.
Those fighting off icy temperatures all day long might fancy a steam bath, some pampering or day spa. In the domed hall of the Liquidrom (pictured) you can dissolve everyday stresses by floating in warm salt water, while enjoying the changing light features accompanied by classical or electronic music. Events with readings, installations or film performances are also regularly held here.
Image: picture-alliance/dpa/R. Jensen
Dive under
The Aqua Dome is the world's biggest freestanding aquarium. In the center of Berlin a coral reef habitat was recreated, with 1,500 fish. In the middle a glass elevator brings people up. Visitors can watch fish but also divers, who clean the aquarium between 11 a.m. and 1 p.m. from Monday to Saturday.
Image: picture-alliance/U. Baumgarten
Indulge yourself
Places this crowded must be good. Market Hall Nine in Kreuzberg lives up to this expectation. It is literally busting at the seams on Street Food Thursday. Things here are so tasty! It's good value for money and instead of one restaurant there are dozens of creative food stalls. Every Thursday between 5 pm and 10 pm they offer culinary delights from around the world.
Image: picture-alliance/Eventpress Stauffenberg
Go on a shopping spree
For people who like spend their time shopping, Berlin is one great temptation. The grand traditional KaDeWe, Kaufhaus des Westens, is no longer the only place to go. Numerous shopping centers and malls as well as concept stores have been added to the mix since the 1990s. The most recent development is the Mall of Berlin, which aims to be Germany's biggest shopping center.
Image: picture-alliance/dpa/M. C. Hurek
Take in a show
For instance you could go and see "Cleopatra's Pearls" at the Komische Oper. Berlin stages are usually sold out weeks or even months in advance. Those wishing to buy tickets last minute for an evening of theater, cabaret, musical, variety or opera need not despair - you can often get hold of surplus tickets at the box-office.
Image: picture-alliance/POP-EYE/sinissey
Dance the night away
There's a place in Berlin where everybody goes to dance. Couples in their seventies and older, or under 20 as well as eccentrics, hipsters and in among them those normal folks who just want to watch the spectacle. Clärchen's ballroom in the Mitte district has been around since 1913. Dancing is still done here so much so that the walls drip with condensation - making it a hot (literally) tip!
Image: picture-alliance/SCHROEWIG/News & Images
Go for a ride
The most cost-effective way to keep warm while sight-seeing in Berlin are the suburban trains. A ticket costs € 2.80 (3 US $). Just take your seat, rub the condensation off the window and watch the world go by. Our tip is to take the route between Westkreuz and Ostkreuz junctions - which leads past Alexanderplatz, the Victory Column, the Hackescher Markt and the Museum Island.