Where is it?

Germany's capital city is located in the heart of the Berlin-Brandenburg region in the northeast of the country.

What's so special about it?

The city is most famous for the fact that it was divided after the second world war and for the Berlin Wall that stood from 1961 to 1989.

After reunification it became the capital of the whole of Germany again.

The city is a major influence in terms of European politics, culture and science and is inhabited by people from over 180 countries.

Best kept secrets

The German government has invested 75bn in rejuvenating Berlin and the city has been very popular with Irish investors who last year ploughed roughly 1bn into German real estate. The recent Economist Intelligence Unit's worldwide cost-ofliving survey found that Berlin, while having a population of 3.4 million and being the second most populous city in the EU, is actually only the 72nd most expensive.

Who lives here?

Prolific investors Brad Pitt and Angelina Jolie have just splashed out 3m on a trendy flat near the Alexanderplatz. Other Hollywood stars with Berlin homes include Matt Damon, Tom Cruise and Nicolas Cage. Famous names born in Berlin include actresses Marlene Dietrich, Nastassja Kinski and Lord of the Rings star Dominic Monaghan.

What's the property market like?

Only 12% of Berlin residents own their own property so the city is a strong buy-tolet location. "Berlin is a market that offers the investor the ideal combination of security of investment and the potential of some significant capital appreciation, " says Dr Wilfried Leyens, a former Harvard lecturer in Marketing Strategy, now working for the part Irishowned firm IPP Global in Berlin.

"Prices in Berlin are about 10% of those in London and over the last 18 months Berlin capital investments estimates prices rose by 20%. Next to a buy-and-hold strategy, condominium conversion may become a very interesting exit strategy and yield driver due to the low ownership rate in Berlin, " a recent report from Jones Lang LaSalle recommended. "Since demand exceeds the completion of apartments in the next few years, a shortage of appropriate apartments can be expected in partial markets, " the report says.

Prices currently are low but as unemployment decreases and the economy recovers, buying power will increase which will affect prices and rental returns.

How do you go about buying property?

Berlin has two main newspapers, Berliner Zeitung and Der Tagesspiegel, and The Exberliner, an Englishlanguage magazine. When sourcing an agent the National Association of Estate Agents in the UK has 10,000 agents in Germany or you can source Irish agents at Overseaslist. com.

Foreigners are not restricted from buying in Berlin and finance through mortgages is possible as it is part of the EU.

The buying process is quite straightforward. Your agent or Makler will forward your bid to the seller or their agent . . . but one thing to remember is your agent can also represent other prospective bidders in an auction.

Once the bid is accepted the notary will draw up a contract. Check the property for defects as the notary does not do this. You should ask for a "priority notice" to be sent to the land register as it prevents the seller from selling the property to a higher bidder should once transpire.

At the signing, the contract is read aloud in German so it is advisable to hire a translator but you can ask what items mean if you are unsure.

The title is then registered with the Grundbuch (land title register) at the local courthouse. Total fees on top of the purchase price are usually about 10-12%.

Where are the best places to buy?

Potsdamer Platz is the heart of the "new" Berlin, while Alexanderplatz is where many of the elite foreign and famous buyers have bought. Trevor Hudson, from the Berlin Real Estate Centre, advises that the best areas to buy are currently Zehlendorf, Steglitz and the up-andcoming Mitte, which has been compared to London's Chelsea, but is a tenth of the price.

What's the rental market like?

While the number of people renting is very high compared to other EU countries, the Jones Lang LaSalle report found that "during the last 10 years average rents increased only slightly in Germany".

The Global Property Guide put rental yields in the city at 4.4%. They report that the best yields, of between 6-7%, are for apartments in the city centre that are less than 90sq m. German law is very pro-tenant and a landlord can be fined if they try to increase the rent to in excess of 20% above the rent charged for comparable premises. Tax on rental income is also quite high and can be up to 25% for non-residents owning rental properties in the city.

What's the resell market like?

With many Berliners opting to rent instead of buy, the resale market is mainly for overseas buyers and many investors are purchasing resale properties as prices are currently low.

What type of property is available?

The size of property is always measured in square metres. The number of rooms quoted generally does not include kitchen and bathroom and remember that reception rooms and bedrooms are usually all counted as "rooms". There is less of a variety of housing in Berlin . . . as with most European cities, the vast majority of dwellings are flats.

Detached houses are on the outskirts of the city and tend to be pricey.

Average property prices?

On average, property prices are 1,250 per square metre. However in premier locations in the city centre the Global Property Guide estimates that prices are 3,167 per square metre.

What are the tax breaks with Ireland?

Germany and Ireland have a double taxation agreement so all income must be reported to the Irish Revenue Commissioners. Tax on rental income is high at 25% but capital gains tax is only applied to properties owned for less than 10 years.

FAST FACTS

Getting there: Ryanair flies from Dublin and Aer Lingus services Berlin from Cork and Dublin.

Area: 891sq km

Population: 3.45 million

Currency: Euro

Weather: from 30degreesC in summer to -5degreesC in winter

Transport: The Berlin Transport Authority has a network of S-bahns (regional trains), U-bahns (subways), buses, and trams that serve destinations in three zones.

Going out: Berlin's nightlife is legendary around Europe. Most restaurants, cafes and clubs are situated in the districts of Mitte, Prenzlauer Berg, Kreuzberg, Schoneberg and Charlottenburg.

Eating Out: Though Berlin has traditionally been more a city of good solid eating than a gourmet destination, during the last 10 years it has developed one of the most intriguing and innovative restaurant scenes in Europe. Increasingly, Germany's most ambitious young chefs are choosing to set up shop here. They are recoining the traditional idioms of German cooking . . . brightening classic dishes made from quality local produce with fresh herbs and spices and lightening them by reducing heavy sauces and meat in every dish.

Shopping: The most dynamic shopping is in east Berlin. In the west, the new Friedrichstrasse is popular and the old Huguenot area boasts international names such as Donna Karan and Gucci.

Property Gallery

BERLIN CAMPUS, EAST BERLIN

Price: From 107,000

Details: An off-plan development located beside the River Spree, consisting of six 19th-century buildings and 150 apartments.

Contact: GermanProperty. ie, 01-810 1944; www. germanproperty. ie

MOCKERNSTRASSE 70, KREUZBERG

Price: From 1,500 per sq m

Details: Restoration and refurbishment of a late 19th-century building comprising of 28 apartments ranging in size from 55sq m to 162sq m.

Contact: Aylesford International: 0044-207351 2383; www. aylesford. com

SHOENEBERG APARTMENTS, EISASKSTRASSE

Price: From 85,000 Details: A premier residence in one of the most desired residential areas of Berlin, just five minutes' drive from the famous Kurfurdenstamm shopping avenue.

Contact: MRI Overseas

Property: 1800 211 426; www. mrioverseasproperty. com

PRENZLAUER BERG

Price: From 1,374 per sq m

Details: Consisting of 115 apartments, ranging between 40sq m and 140sq m in a building renovated and modernized between 2003 and 2004 and comes with a 10-year rental-income guarantee.

Contact: Berlin Real Estate Centre: 0044-7917 358805; www. berlinrealestatecentre. eu

USEFUL CONTACTS

Irish Embassy, Berlin: 0049-30 220 720; www. botschaft-irland. de

German Embassy, Dublin: 01-269 3011; germany@indigo. ie

The Exberliner: www. exberliner. com

Association of International Property Professionals: 0044-20 7409 7061; www. aipp. org. uk

Property Lawyers Abroad Network: www. plani. net

Berlin Tourist Board: www. berlin-touristinformation. de

The Economist: www. economist. com/countries/ Germany/

Deutsche Bank Research: www. dbresearch. com

Berlin information in English: www. berlin. de/english