Property Investment Regions in Berlin

Spandau

The district of Spandau (pop 33,000) gives its name to borough and is one of the oldest recorded areas in Berlin.

While originally an independent city it was incorporated into Greater Berlin as part of the boundary changes of 1920. It is located around the confluence of the rivers Spree and Havel and has long been the location of military fortifications which were first built in the region in the 10th century. Over time the military fortifications that evolved in the area led to the creation of Spandau Citadel which was completed in 1594 on land that is now in the adjoining district of Haselhorst. The areas armaments history dates from the late 16th century when there was a gun factory in the district, in the 19th and 20th century the district became a major arms production area. At the end of the 19th century Siemens AG setup production in the area and this eventually led to the creation of its own residential district of "Siemensstadt" to the east of the district Spandau. The cultural centre of the borough is the old City Spandau; the structure of the City Spandau generally dates from the early part of the 20th century.

With its position at the bottom of the rental change charts Spandau will only see positive development in rental rates as a result of overflow effects from other areas as they become less affordable.

With the Berlin market showing an overall trend towards yield compression with higher property prices Spandau should still see some price increases in the near term (the most recent increase in property prices in the borough is almost certainly based on investor activity and an acceptance of lower yields ). However, there is probably little potential in the short to medium term for any core property price increases due to better rental rates so the borough is very definitely a long term play.

Should rental rates and sales prices remain on their present course in the borough it will eventually become a major turn-around play, market entry timing will be important for those looking to take advantage of any turnaround. Spill over as tenants with lower income (or on income support) move into the area from more expensive adjacent boroughs and central areas where rents are rising rapidly should eventually stabilise rental rates.