Vesper enters Berlin real property market

February, 1 -  Vesper, the market leader in the number of sold properties in high price segment of residential real estate*, announces the first project in Berlin.  Investments into Pier One Berlin will total about Euro 30m. A building permit was received at the turn of 2016; work is scheduled for completion in 2018.

Pier One Berlin is situated on an embankment of a Spree tributary in Berlin’s downtown - Mitte district. 49 apartments will be situated in a six-storey premium building; total project area is 7,800 sq m. Penthouses with river views occupy the upper floor.

A modern arts museum is located near the house. City development plans comprise development of adjacent area and embankment that will become a new venue for exhibitions and festivals.

The architectural concept of the house belongs to a leading German bureau Thomas Müller Ivan Reimann involved in design for more than 20 years. Among their designs are buildings of the Foreign Ministry and the Interior Ministry in Berlin and participation in implementation of large-scale city projects Hackenscher Quartier and Leipziger Platz, where apartments, offices and shopping centers are situated.

Financial partner of the project - German DGHYP bank. Technical Customer - Drees&Sommer international company.
Boris Azarenko, General Director and Co-owner of Vesper: “Successful track record of the company in delivery of high-price segment projects with use of global practices makes possible for us to confidently develop abroad. Berlin is still one of the most stable and promising European markets. High quality of life and creation of technology centers with new jobs provide dynamic development for the city, prompting Vesper’s interest in this region. An international team with expertise in the residential property segment is working on Pier One Berlin project. Sophisticated architecture, efficient space planning solutions, the most advanced utility systems and use of natural materials - characteristics inherent for each Vesper’s project will also be implemented in Pier One Berlin. Philosophy and values of the company embodied in hour houses make possible for us to create not merely an ordinary project in a new region but one of the best on the market, which we will implement at the top price tag for this segment.”

East Berlin, where Mitte District is located, is one of the most actively developing parts of the city. According to Germany’s Ziegert company, Mitte District population rose by 30,000 from 2011 - this is the most notable growth among Berlin district, with 44% of new residents in Mitte coming from abroad. 11,000 new jobs were created in technology sphere in Berlin since 2011.

Zhanna Ovchinnikova, Foreign Property Projects Executive with Knight Frank, says: “Berlin attracts buyers across the globe; European, Asian, Russian, and Middle East buyers are purchasing residential spaces there. Berlin is considered to be a young (by population age) city. It is highly attractive for young specialists; IT industry and design industry are developing there, and it attracts people by cosmopolitan and democratic style. Berlin remains an underestimated city in terms of real property prices and has a prospect of prices growth. People are buying residential properties for their own living and with investment purposes. Prices of premium residential properties in Berlin surged 12% in the last two years. The average price of elite housing is about Euro 9,000 per sq m. Prices are ranging from Euro 7,000 to Euro 12,000 per sq m in Berlin downtown, in districts adjacent to Tiergarten Park and Spree Embankment.
Vesper continues to proactively develop the portfolio of projects - the company brought three new houses to the market: Bunin in Plyuschikha, Nabokov in Ostozhenka, and Cloud Nine in Polyanka. Corporate revenues from real property sales in 2016 amounted to 9 bln rubles ($150.9m). Vesper plans to bring four new projects in Moscow to the market in 2017.