Tag Archives: Alternative investments

Dolphin Capital GMBH

German Real Estate increases with Euro rate drop

Investor and resident demand continues to increase in the Berlin housing market as reported by the CBRA Berlin Housing Market Report. The main reasons for this are improved economic performance and purchasing power in addition to growth in both population and numbers of households. Investors’ extreme interest in residential property is based on prices, which are still moderate by international comparison, the positive opportunities for the city, low interest rates, and the shortage of alternative investments.

Due to the noticeable decrease of the euro exchange rate, Property in Germany has become even more appealing to investors from other currency areas such as the UK with sterling holding strong. Even with the Euro rate dropping, it’s had a positive impact on German real estate. Berlin is seeing the highest increase in investment at over €1.3 billion in Q1 2015 compared to €617 million in the same period last year. This is great news for our Dolphin Trust formerly Dolphin Capital investors as the Euro was seen by some investors as a big area of concern.

Participants in a recent Berlin Hyp survey established that Germany remains highly appealing for investment in 2015 and that investors have immense confidence in the country’s constant economic development. German real estate is still in demand as an investment opportunity with decent yield prospects and a high percentage (around 84%) of survey participants feel that the real estate market will continue to strengthen and take advantage from conflicts around the world. Furthermore, German consumers’ disposition to buy property improved even more in May. This was encouraged by an all-time low in unemployment and low interest rates.

Barrington Howe celebrates this month a third year anniversary of working with Dolphin Trust. The latest Dolphin Trust (Windorferstrasse 43, Leipzig )project started restoration works on this 19th century three-storey building in April 2015. The demolition work has been completed successfully and the walls and floors are now being put in place, with scaffolding erected around the building. All of the apartments will be appointed with bath tubs and a balcony or terrace.

Another Dolphin Trust project is Heeperstrasse 70, Leopoldshöhe. This building which was previously a furniture factory but Dolphin Trust has plans to refurbish parts which used to serve as store areas. The remaining areas will most likely be demolished and replaced with new buildings. Heeperstrasse is located in a popular university town in Detmold. The increase in demand for housing in Detmold has caused the new build sector to see a rise of more than 9.5% annually for the last four years.