According to a study by the real estate consultancy and fund management specialists at Catella Germany, there has been an increase in demand for residential properties near water – scope that investors are increasingly discovering for themselves.
“Living with a view of the water”
If you look at the development of modern cities over the past decade, you can see that there is a tendency towards the construction of residential properties near waterways – according to the Haufe experts. The Berlin urban development project “Waterkant” in Spandau and the port revitalization project “Überseequartier Bremen” around the port area serve as prominent examples. Investors are increasingly recognizing the high potential for appreciation of said properties with a view of the water, as a study by the real estate consulting and fund management specialists at Catella Germany shows. Prof. Dr. Thomas Beyerle, Head of Group Research at Catella Germany, emphasizes in particular both the strong demand and the exceptional value development of properties on waterfronts. In addition to considerable increases in land value, the so-called “filtering-up” phenomenon, which describes the process of reverse gentrification, can still be seen. According to the results of the study, increases in value can already be measured in existing new buildings. “Appraisers have always known that, but investors are discovering this playing field more and more,” explains Beyerle.
The potential for value appreciation is higher than that of trendy residential areas in city centers
The Catella analysis results also show that properties in waterfront locations have a higher potential for appreciation than residential complexes in popular “trendy” downtown areas. The greatest price potential was previously used industrially by port facilities, the number of square meters and ceiling height of which favor the implementation of creative district concepts. This is followed by new construction projects in urban locations that include the concept of creating artificial water surfaces. Undeveloped water plots are seldom taken into account when planning new residential complexes with a view of the water due to natural concerns, so that the growth potential is lowest here.
According to Catella, five of the ten projects with the greatest potential for value growth are in Berlin alone. Most of the projects are currently being implemented with seven of 15 projects in North Rhine-Westphalia.
Why the popularity of waterfront properties is increasing
Aspects that make living in a property appear worth living in are both subjective and individual. As Doris Scarpatetti-Matheis, managing director of the real estate agency Wörthersee Immobilien, comments on DERSTANDARD, however, “[..] the water rest and relaxation ”and offers“ countless activities. Retreat and Lifestyle ”. “It’s all a personal and individual choice,” she adds. Reasons that favor both the popularity and price increases of properties with a waterfront location, so that amounts in the double-digit millions are not uncommon, according to Scarpatetti-Matheis. “Prices go up, go up, go up,” she explains. The current COVID-19 pandemic is also a catalyst for these developments. “During the lockdown, we received a lot of inquiries for properties on Lake Wörthersee,” observes Scarpatetti-Matheis. Furthermore, customers who already own a property on Lake Wörthersee have learned to appreciate it even more because of the travel restrictions.
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