Senate presents Rent Index 2013

Increase in rents slowed down. 3.1% rise compared with 2011.

Berlin’s Senator for Urban Development and the Environment, Michael Müller, has published the Berlin rent index 2013. The new version of the rent index that is drawn up every two years in corporation with Berlin owners' and tenants’ associations indicates a moderate rent increase.The rent index is a realistic image of the Berlin rent situation. The data are based on a representative survey of data regarding rents and equipment on the reporting date of 1st September 2012. According to the press release published by the Senate Administration, the rent increase has been only moderate compared with the last rent index of 2011 despite of an increasingly strained housing market due to growth and the continuing attractiveness of Berlin.The weighted average net cold rent in Berlin is 5.54 €/m² per month according to the current rent index. In comparison: 2011 it was 5.21 €/m².A strong increase above average has been indicated for rents for old buildings and properties with a standard location. Also smaller apartments report higher rates of growth according to the press statement. As for the building years from 1950 to 1972 and 1973 to 1990 in the East of the city and the mid-level and good locations, rents have risen only below average.The concern of tenants and tenants’ associations that rents for Berlin real estate would increase without restraint apparently cannot be confirmed. Besides the recently introduced limit of rent increases to 15% within three years and the intended prohibition against misuse in form of the commercial use of properties, for example as holiday accommodations, the Senate also plans the development of socially appropriate flats in Berlin. Overall, it is to be expected that a combination of the measures will lead to a stabilization of the Berlin housing market on the long term. In our market report of Berlin you can read how prices per square meters for Berlin real estate develop in the different districts. We update our market reports every month. Our latest figures form May 2013 seem to indicate that also the increase of the offer prices for properties in Berlin slows down a little bit. We consider this “small consolidation” as an indication that the growth on the Berlin real estate market is characterized by stability and a long-term nature.

By analogy with the Berlin rent index 2013, the price increase is most evident in the standard locations. So Neukölln is rapidly gaining value and the adaptation to the neighboring district Kreuzberg is in full development. In the central Kreuzkölln, meaning the area where the districts Kreuzberg and Neukölln come together, we expect an alignment of prices in 2013.In addition, the district Wedding is one of the winners. The quarters north-west from the district Berlin-Mitte increase its attractiveness. Here, also larger properties are available at reasonable prices.Feel free to call us if you have any questions or if you would like to market your Berlin real estate by a professional team.

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