How the Banking Crisis and Credit Crunch is Affecting the Real Estate and Property Market in Berlin, Germany

Since the Sub-prime crisis of Summer 2007 the demand for investment properties has decreased by 20%.
After the recent bank bailout demand has again fell by 20%.
Price has decreased 10-20%, depending on location.
The German economic forecast has been reduced.
The ultimate result is that there are less buyers for investment property in Germany.

Is my Investment Property in Berlin at risk?

Depends on the finances surrounding your mortgage.
Financing through a German bank is often better due to fixed interest rates and conservative lending being the norm.
Flexible rate loans through Danish, British and Irish banks are riskier.
The key factor determining risk for an investment is whether the income will cover the mortgage in the short and long term.
If you mortgage is not fixed the only way to lower your risk is to increase the income of the property.