Berlin’s population has been growing for the past two years at an outstanding rate of around 2500 people per month. Its attractiveness as the “capital to be” has undoubtedly augmented the demand for well located properties.
This article will focus on one of Berlin’s most desired districts: Pankow, which comprises since 2001 the old boroughs of Pankow, Prenzlauer Berg and Weißensee. It is located in the northeastern part of Berlin and has approx. 376.000 inhabitants.
Just to give you an idea of what this district is all about, imagine residents living in former industrial buildings, and a landscape demarked by homogeneous beautiful historical constructions, small cafes, inexpensive but really tasty restaurants, parks, pubs, galleries, etc.
Schönhauser Allee, Prenzlauer Allee and Greifswalder Straße are its main streets, which ideally connect to the periphery and the surroundings of the city.
Pankow is a dynamic and very desired district, which drives the attention of many investors. As you can appreciate in the graph below, this district has the perfect position in the market cycle, with an increasing price tendency: slow but secure.
Purchasing Prices:
Sale prices for condominiums range from 1.100 EUR/sqm to 3.800 EUR/sqm. Prices for single-family houses range from 150.000 EUR to 500.000 EUR.
Purchasing prices in Prenzlauer Berg increased by 7,7% from 2011-2012.
Asking rents:
Asking rents in the neighborhoods of the south of Prenzlauer Berg are currently amongst the most expensive in Berlin. The majority of the population in this sector consists of young families, as this is one of few places in Germany with a baby boom in recent and coming years.
Average asking rents range from 6 – 16 euros per sqm, showing an increase of 6,5% – 12,7% from 2010-2011 (depending on the house segment).
Rents around Kollwitzplatz (a beautiful town square alluring some of Berlin’s upper class) are the fourth most expensive in Berlin.
Tenants in Helmholtzplatz and Prenzlauer Allee have one of the lowest purchasing powers in the city, due to the fact that this area remains home to a big number of students and young people. Their housing cost ratio is 35% of the local purchasing power.
The further north of the district you move, the more you find affordable housing. A good example is Alt-Pankow, where average asking rents in 2011 ranged between 6.70 – 7 euros per sqm.
Average asking rents in the whole Prenzlauer Berg increased in the period 2011-2012 by 4,6%.
All in all, buying a property in Pankow will make your money go further, as purchasing prices rose by almost 8% from 2011-2012 and will continue growing.
If you have any questions regarding this District please leave your comment below and we would gladly answer your thoughts!
Do not hesitate and start investing in this trendy district!
