Eri Mitsostergiou, European research analyst at FPDSavills, said that Berlin now has the strength to survive economic turbulence in the long term. 'We believe Berlin is in a strong position and the city's renaissance will be driven by the fact that it is the new capital of Germany and that it will be very well positioned in the eastward expanded European Union,' she said.

The report also highlights the improving investment market, with prime achievable yields currently standing at around 5%, although most transactions are reflecting between 5.25% and 5.75%.

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