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Berlin is the capital of Germany and is home to 3.5 million inhabitants; however, the house prices in the city are much lower than one would expect. This is even more surprising when one considers that the German economy is the largest in Europe and the third largest in the world. This has led analysts to believe that the property market in Berlin is undervalued and it is set for an increase. Further statistics that would indicate an undervalued market is that the cost per sqm is the lowest of any European capital city, there are no currency risks, and there are a number of buildings in prime city centre locations available.

Other cities in Germany that are also property investment hotspots are Hamburg, Stuttgart and Frankfurt. There have been relatively few new property developments in recently years in these areas; therefore, as supply is restricted, one could see an increase in the prices of existing properties.

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