Taking their cue from a heavily regenerated Berlin, other "Iron Curtain" cities in Germany are now being targeted by property investors.
Fast becoming Europe’s coolest metropolis, Germany’s new-look capital Berlin is setting a precedent in more ways than one. Heightened real estate activity there has spread across neighboring states, with the former Iron Curtain regions of Thuringia, Saxony and Saxony Anhalt all being seen as new pockets of potential.
"Cities with a growing nucleus of ‘sunrise industries’, in innovative sectors such as new technologies and renewable energy, are going from strength to strength", - explains Ingo Arlt of Berlin-based estate agent GMBH.
"Cities like Dresden and Leipzig have potential for a range of investors", - states Marco Haebold of agency City Makler Dresden. "With finance rates around four to five per cent, net yields of seven per cent or higher ensure a positive cash flow, plus there’s a stable tenanted rental structure."
Source: http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/9389131/Property-investors-look-to-East-Germany.html