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Spot the overseas hotspot (Telegraph UK)

With his three key investment factors in mind, Lu’s tip for 2007 is Berlin. Property prices in the German capital, which start at around £690 per square metre, are on a par with emerging Eastern European cities. Compare that with other Western capitals, with average prices of £3,440 per sq m in Paris or £9,000 per sq m in prime central London.

“Before reunification, most of the property on the West side was owned by big private institutions and property in the East was Government-owned, so German people did not have the opportunity to own homes and the market has been depressed for a long time,” Lu explains.

“The city has the cheapest house prices in the Western world and the lowest rate of home ownership at just 10 per cent,” he adds. “Prices there have hit rock bottom after falling every year for the past decade, but now they are on the turn. Buy now and you are entering the market at the beginning with a chance of good capital appreciation.”

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