Seeing that the growth rate is only projected to continue and that the demand far exceeds the supply, a spurt of new construction is being seen throughout Berlin. GSW Immobilien AG analyzed around 200 active and scheduled construction projects (with a total of 12,000 units) within the 12 districts that make up Berlin. This article summarizes the results reported from the Housing Market Report 2013.
Mitte
This historic area, which is the most expensive district in Berlin, is not surprisingly leading the pack in new construction. Many of the projects are aimed to satisfy the demand for luxury apartments with prices topping out at €11,000/m². Some projects are optimizing the land previously occupied by the wall such as at Chausseestrasse and Boyenstrasse, Seydelstrasse, Kreuzberg in Beuthstrasse and Kommandantenstrasse. Others are filling in the gaps between buildings.
Pankow
This district currently has 41 new construction projects. “La Vie” is currently the largest project with 360 units. Other projects including the “Floragärten” in the historic section, those in Prenzlauer Berg, which is close to the city’s center, and some other smaller projects within Alt-Pankow. Of interest is the number of new projects in Weissensee located out of the city center.
Friedrichshain-Kreuzberg
A vast majority of the construction here is being done between building gaps creating smaller projects of between 10 to 50 units. New construction can be found in the Samariter quarter, Boxhagener Platz and around the Rummelsburg Bay. That is not to say that there are no large projects. Close to the new Gleisdreieck Park, the Möckernkiez cooperative is approved to construct 400 units; though it remains to be seen if the project will get off the ground. Other projects with over 100 units include “My Berlin” which is across from the Friedrichshain public park and the “Green Village” in Rigaer Strasse.
Treptow-Köpenick
With the vast majority of new construction being completed within the city center, Treptow- Köpenick stands out of the crowd. Construction in this southeastern district is booming. The Adlershof quarter has caught the attention of contractors and investors alike due to the close proximity to the new airport and a lack of supply to support the area’s biggest technology park. Additionally, this area still offers moderate prices and vacant land.
Charlottenburg-Wilmersdorf
Wilmersdorf, located in the South, is receiving the most new construction within the district with a few projects in the northern part of Charlottenburg.
Lichtenberg
Projects within Lichtenberg will add an additional 600 reasonably priced units to the supply. The planned projects include building conversions, lofts, townhouses and rental complexes.
Other Districts
Not all of the districts are seeing new construction. Marzahn-Hellersdorf, Neukölln, Reinickendorf, Spandau and Tempelhof-Schöneberg do not have any planned projects with apartments according to CBRE. In Steglitz-Zehlendorf, most of the limited construction is focused on small upscale projects located on their own lots within the greener areas of the district – which is a nice change from other projects in and around Berlin.The increase in new construction will help to satisfy demand and should not have a long-term affect to rental values. Unfortunately, it is failing to keep pace with the increasing demand. If the 3,519 additional units which have been approved for construction are finished in 2013, it will only satisfy one-fifth of the demand.
