Facts about the District of Pankow, Berlin
Pankow is a large district located in the northern section of Berlin, Germany. Residences in this district vary from downtown apartments, classic 1920’s architecture, GDR housing units, luxury accommodations and old style villages. This area is undergoing considerable modernisation and updating. This district boasts a population of around 365,000 which covers an area of 103 square kilometres. This creates a population density of around 3,543 persons per square kilometer. Public transportation service in and out of the district is provided via the U2 line of the Berlin U-Bahn, S-Bahn and M1 inner city line.
Appealing Features of Pankow
Pankow features a classic historic town center. Many of the older buildings in this district are being remodeled and updated. Of particular interest is the neighborhood of Grune Stadt which features plenty of modernized accommodations surrounded by beautiful green areas. Karow area has been the site of some recent new residential construction and still features modest rental rates.
Some interesting features of the area include the beautifully restored Rykestrasse Synagogue which was built in 1904 and then burned during the World War II era. There is also the Zeiss Planetarium, the Schloss Schonhausen castle, the water tower in Prenzlauer Berg and the Weißensee Cemetery (one the largest Jewish cemeteries in Europe) to name a few. There are also large shopping centers along with quaint shops and market areas.
The Financial Appeal of Pankow
The GSW 2013 Housing Market Report stated that “The most exciting real estate markets are found in the south of the district. The heart of Prenzlauer Berg around Kollwitzplatz has developed into one of Berlin’s most highly sought-after areas.” Rental rates in this area top out at €18.18 per square meter with an average apartment size of around 76 square meters. The high rents in this area have caused the housing cost ratio (the percentage of monthly income spent on housing and heating) to be one of the highest in the district at 34.1 percent. You will find many wealthy professionals in this neighborhood.
Where to Buy in Pankow?
Tenants who are looking for high end luxurious living accommodations should consider Prenzlauer Berg around Kollwitzplatz (€18.18 m2), Prenzlauer Allee (€16.36 m2), Danziger Straße and Helmholtzplatz (both at €15.22 m2). The most spacious accommodations are found in Kollwitzplatz and Helmholtzplatz with apartments averaging 76 and 74 square meters respectively. The downside in this area is that housing costs will on the average consume between 30 – 35% of the monthly income.
For those who are looking for large housing units with more reasonable rental rates should look into areas on the edge of the city including Niederschönhausen, Buchholz and Karow/Buch. Niederschönhausen offers the largest accommodations in this district at 78 square meters which rents for a modest €7.50 m2.Buchholz and Karow/Buch offers 73.5 square meter apartments at around €6.50 m2 with a housing cost ratio of only 21% which is lower than the Berlin average.
The areas which have the lowest ratio of rent to income and show a strong potential for rental rate increases include the neighborhoods of Buchholz (21%), Blankenburg (21%), Karow/Buch (21.3%), Heinersdorf (22.1%) and Rosenthal (24.2%). The average housing cost ratio in Berlin is 27.4%.
The Future Outlook for Pankow
Pankow is a district that is highly sought after with some areas demanding pretty high rental rates. There are areas within Pankow that show the potential for rental rate increases. There are also neighborhoods that feature either newly modernized apartments or completely new construction. These areas should hold their value over time and could be some good investment opportunities.