Real Estate in Berlin Germany
In the past few years, Berlin has experienced a growth in demand for housing while supply has largely stagnated over a long period of time. The only outcome of such situation is rising rents and purchasing prices. That means that Berlin is currently facing a shortage of high-end housing units in the best locations. Many Berlin residents are emphasizing on living in the best locations of the city. They are equally willing to pay more in order to attain that goal.
| City District |
Residents in 2010 |
Population density/km2 |
Vacancy Rate in 2009 |
| Charlottenburg-Wilmersdorf |
312,184 |
4,825 |
3.0 |
| Friedrichshain-Kreuzberg |
259,502 |
12,847 |
2.1 |
| Lichtenberg |
252,340 |
4,825 |
3.0 |
| Marzahn-Hellersdorf |
244,980 |
3,964 |
6.2 |
| Mitte |
325,684 |
8,245 |
3.8 |
| Pankow |
356,764 |
3,460 |
2.4 |
| Reinickendorf |
240,852 |
2,691 |
2.7 |
Since 2004, Berlin has been growing in many aspects. It has experienced population growth, increased economic output and even increasing employment rates. This is caused by the fact that there are more people moving into the city than out of it.
The Berlin-Brandenburg Association of housing forecasts that there will be 3,500 units of housing to be built in Berlin every year. The lack out activity in the housing industry is due to the absence of tax breaks and subsidies from the government. The construction projects are therefore very expensive for the prospective buyers and tenants. People with purchasing power are now turning to the old but high quality properties which are located in good locations. That greatly contributes to the increment of prices as well as rental fees in areas of interest.
There are two districts in particular which are at the front-line in terms of market segmentation. These are Charlottenburg-Wilmersdorf and Mitte. The districts at the edge of the city are the home of many large residential estates. These districts were constructed between 1960s and 1980s. Rental growth is accelerating for Mitte, Pankow, Neukolln and Lichtenberg. These districts are on the accelerating side of the rental market cycle. The Pankow and Mittle are at the start of the growth cycle. Therefore, more growth is expected in the future.
Berlin is the city with the largest number of residential apartments in the European market. In 2009 alone Berlin witnessed a volume of transaction worth €2 Billion. This comprised nearly a quarter of all the transitions for residential apartments in Germany which were valued at €8.5 billion in the same year.
Berlin-Mitte
This district is known to be the cultural and political center of Germany. It is located on the city center of Berlin. There is a concentration of high-end properties in this area. The asking rents are at an average of 13.78 EUR which is the highest in the entire Berlin city. It has a population of 4 million inhabitants and most of the addresses in this location are known even internationally. Some of the locations are: Potsdamer Platz, Unter den Linden, FriedrichstraBe and Hackescher Markt. Since 1990, Hackescher Markt has been a recipient of many development projects. Despite the fact that Mitte is a very attractive district, its living conditions are very turbulent. There are many centralized institutions in this district which means that it lacks a number of essential facilities such as shops and clinics.
The areas of Moabit and Wedding are leading in the investment market. There are numerous individual buildings that enjoy trading activity which is quite lively. In this area there are just a few residential apartment buildings. There are many historic monuments in this district. Some examples include: Museum Island, Brandenburg Gate, Gendarmenmarkt, Unter Den Linden, and Reichstag which is parliament and finally the Potsdamer Platz. There are a number of restaurants which are located along the Spree River. It covers 40 KM2 of where with a total population of 338,000 people. These people are relatively young at the age of 25 to 45 years for the majority of those people.
The Tiergarten is the largest park located in the urban area. It covers 210 hectares of land and it is squarely situated inside Mitte. Most residents in Berlin visit the park for a walk. Some of them go for a trip along the river.The foreigners from international capitals like visiting the park for amusement. It has many beautiful landscapes with a number of monuments, theaters and museums.
The Real Estate Market in Mitte
There are two sections of the districts. One is relatively expensive while the other is affordable. The top most segments are served by the people with the highest purchasing power in Berlin. The area in Wedding is extremely affordable. The other area which is affordable is Moabit. Purchasing prices in Mitte have been appreciating at 5% every year. The trend shows that the prices will continue increasing in the future. You can purchase properties for new development or better still go for the existing properties. This is a trendy district where you should never estate to invest.
Berlin-Schöneberg
This is one of the most attractive residential districts in Berlin. Schoneberg is currently forming part of the new district of Tempelhof-Schoneberg. This is one of the districts which portray Berlin as a metropolis with a human heart. This is the place where you can find all the advantages of a big city as well as the romance found in the small towns. The bar and cultural scenes makes the district very vibrant. There is a considerable amount of green vegetation which consists of number parks. There are many open-minded people. The district is a home of many middle-class people. There are all types of people such as native Berliners, new comers, families, older people and single people. All residents in this district are rewarded with a high quality of life in the urban setting.
There are a number of incredible sights such as KaDeWe which is the second largest department store in the whole of Europe. In the John F. Kennedy Plat, the city hall Rathaus is conveniently located. This is where the U.S. president delivered his powerful speech “Ich bin ein Berliner’ in 1963. In 2012, Berlin experienced a general increase in rents by 8% for the residential apartments. Initially, the landlords were charging 6.20 Euros which later increased to 6.70 Euros per square meter. The increment was much bigger for the case of the preferred residential areas where the rent increased from 7.60 Euros to 8.20 Euros for every square meter of space. Tempelhof-Schöneberg is one of the places with the highest demands for residential properties in Berlin. This region experienced an increase in rents by 9.7%. That is 7.6 to 8.5 per square meter.
Purchasing Prices in Schöneberg
The comparison of the year 2011 and 2012 shows that, property prices increased by 8.8%. That is it increased up to €1,850 per square meter. The prices increased from €1,300 to €1,400 per square meter according to Immobilienverband Deutschland. Berlin is a city whose population is on the rise and this trend is expected to continue for sometime into the future. There were 3.5 million registered citizens for Berlin by December 2011. This is in line with a forecast made by Amt fur Statistik Berlin Brandenburg. The population will grow to 3.752 million people which will be a 7.2 increase.
Berlin-Pankow
Berlin has experienced a population growth of 2,500 people per month. This has made all the well located properties to enjoy lucrative deals. Pankow is one of the districts which have some of the most desired properties in Berlin. The old boroughs of WellBensee, Pankow and Prenzlauer Berg were under the old borough since 2001. The residents in this district live in the buildings which were formally used for industrial purposes. There are beautiful and similar historical constructions in the district. There are a number of small cafes, galleries, parks and pubs. The main streets in the district include: Greifswalder StraBe, Schonhauser Allee and Prenzlauer Allee. These are the main connectors the city neighborhood.
This district is very dynamic and many people within Berlin desire to be part of Pankow. This district is very popular among families in Berlin. This is a district that occupies a central position in the market cycles. The prices are following an ever increasing trend. These prices are increasing slowly but in a secure manner. To the south of Pankow is the home to Prenzlauer Berg which is an area which has been discovered by the middle class. There are young people in this area who are yet to settle down. The northern side of Pankow benefited significantly from the closing down of Tegel Airport in 2012. It was located under the flight path. The district is a few kilometers away from the city centre.
Purchasing Prices in Pankow
You will need to pay between 1,100 Euro per square meter to 3,800 EUR/ square meter. If you are interest in family houses, you will have to part with 150,000 EUR to 500,000 EUR. From 2011-2012, the Prenzlauer Berg experienced a 7.7 per cent increase in prices.
Berlin-Zehlendorf
This district is located in the south west of the city of Berlin. The district has an area of 102 km2 with a population of 292,000 people. There are plenty of green spaces in the district. It is the home of high-end real estate, lakes and leading scientific research institute. The largest forest which has a large number of recreational areas is located in Wannsee. This is an area to the south west of the district. The famous peacock island is located in Nikolassee. This is an area of great attraction to visitors. The Palace Street “Schlossstrasse” is a famous shopping street found in the district. Young families find the Lichterfelde in the south eastern part to be a hot residential place on the south eastern side of the district.
The Real Estate Market in Zehlendorf
There is plenty of classic style buildings which are owner occupied in the district. The family houses, apartment buildings and residential flats are also available in the district. These residential properties earn the sellers millions of cash. The asking price for the old apartments is between €1,900 and €3,900. The new buildings with modern facilities are sold at more than 6,000 EUR per sqm. The district has a strong market and the supply is rare. This is what makes it the perfect place where you should own a home.
Berlin-Charlottenburg-Wilmersdorf
This district is every investor’s favorite. The purchasing price is 1,676 Euros per square meter. It provides the highest asking price in the city of Berlin. In 2010 alone, the percentage increase in the residential prices was the second highest. There are plenty of apartments for the middle class. The district has hotspots which were leading in supply of properties. The Steglitz-Zehlendorf area has the largest number of apartment buildings that were listed on the market.
The market for real estate in Berlin Germany is quickly catching up to other major German cities. Still, the rent levels, population growth, purchasing power and a short supply of living space make Berlin one of the most interesting city for investing in real estate.
