Microanalysis real estate market Berlin
Micro market report Charlottenburg

Charlottenburg has written Berlin’s history all over it. Until the end of the Weimar Republic, Kurfürstendamm was the exclusive place to be for international artists and the bohemian society. The Nazi pogrom on November 9th, 1938 hit Charlottenburg very hard. Approximately 27.000 Jews lived and worked in Charlottenburg before the Nazis took over. Today many memorials for the Jews, who were murdered by the Nazis, can be found in Charlottenburg.
Even though many blocks and quarters have been destroyed during the war, Charlottenburg has preserved its old glow. The famous Charlottenburg Palace, which was built for the first Queen of Prussia, has been badly damaged during WW2 and was reconstructed in the 1950’s.

Today the central district of West-Berlin is one of Berlin´s most popular places. It is a very international district with a high living standard. Even though it might not be the hippest part of the city, Charlottenburg has excellent schools and friendly, international neighborhoods to offer.

65,14
%
Percentage of people between 18 and 65
26,17
%
Internationality (2016)
189.011
Population (2016)
40,52
sqm
Living space per capita
6,4
%
Unemployment levels (06/16)
+3.847
Balance of migration (2016)

Real estate prices in Berlin-Charlottenburg

The phase of stagnation in Charlottenburg after the WW2 was long lasting and the demand for properties in Charlottenburg was very low between 1960- 1980. In the early 90ies people started migrating from Charlottenburg. In order stop the migration tendencies the Senate of Berlin introduced a comprehensive public housing and construction program. New quarters like the opera quarter “Opernviertel” and the “Grüne Dreieck” close to the Olympia stadium developed. With the fall of the Berlin Wall in 1989, the eastern part of the city moved into the focus of investors and the interest in the western part of Berlin went down again. Private buyers and investors preferred neighbourhoods such as Kreuzberg, Friedrichshain and Schöneberg, which were considered to be hipper, younger and more modern. This explains why real estate prices in Charlottenburg were never really high until then. Not so today: almost all quarters of Charlottenburg are in high demand. Kurfürstendamm and Tauentzienstraße are prime locations and among to the most expensive areas in Berlin. Besides its classic atmosphere, Charlottenburg offers many excellent restaurants, great shopping opportunities and a very good connection to the public transport system (BVG). Properties in Charlottenburg still offer a huge potential for a positive and sustainable performance with a high-priced segmentation.

Chart above: Evolution of apartment prices in Berlin-Charlottenburg. Three different price segments show how the price segments gave shifted between 2007- 2016. It shows how many apartments have been offered in Charlottenburg in each price segment. The curve represents the average offering price of all apartment types.

Short breather in 2016. Climbing again in 2017.

Real estate prices and rents in Charlottenburg have undergone a significant rise in the last few years. Nevertheless the speed of price increase has slowed down a little bit in 2016. Our research shows that the sqm prices in Charlottenburg have risen about 4 percent from 2015 to 2016. The average squaremeter price for existing apartments was around EUR 4.050 EUR. Prices for attic flats (roof storeys) and penthouses in Charlottenburg have been set much higher. The number of marketed flats has slightly risen in all segments compared to other central districts in Berlin. The housing market in Charlottenburg has been very active in 2016.

From basic to good areas

The population with the highest net income in Berlin Charlottenburg lives in the quarters between Havelchaussee and Messe Berlin (Exhibition Center Berlin). Mansions from the 1930s, twin houses from the 1950s and many new buildings are located around here.
The comparatively high rental prices between northern Kurfürstendamm around Adenauer Platz and southern Kantstraße can be explained with the high net income of the population. Same goes for the area from the east of Savignyplatz and the west of Berlin Zoo.
Another beautiful quarter with fantastic historic mansions is located around northeast Westend. Simpler apartments, which were built during the postwar period, can be rented for comparatively low rental prices in the northern part of the district. The average size of apartments in this area is 56 sqm.

Shaken off the dust

The period of stagnation in Charlottenburg between 1980 and the early 2000s is long forgotten. Today, international and modern structures characterize Charlotternburg as a result of huge real estate investments in central city locations. Around 50.000 consumers visit the famous KaDeWe, a premium department store, every day. Also around the corner: The “Bikini- House” and the movie theater “Zoo-Palace”. Besides excellent food and drinks the rooftop restaurant Neni and the Monkeybar both offer a great view on the Waldorf-Astoria Hotel, Breitscheidplatz and Tiergarten. The Waldorf- Astoria and two other exclusive hotels have been built recently: the Stue and the Grand Opening. The “Deutsche Oper” (opera) is located northwards of Kurfürstendamm. The opera combines modern architecture and classical music.

Charlottenburg is one of Berlin’s important locations for science and research. Research- and educational institutions such as Technical University, the University of Arts and the Frauenhofer- Institute are based in Charlottenburg. The famous gallery for photography “C/O” with around 2.200 sqm resides in Hardenbergstraße.

Retail and Office in Charlottenburg

The City-West has been revitalized as office, retail and science basis. The highest rent is currently being paid in Tauentzienstraße with an average of 310 EUR/sqm. 59 stores with a 92 percent rate of chain stores are located here. The department store “KaDeWe” is the dominating flagship destination, followed by other big companies such as Peek&Cloppenburg, Esprit, Hennes&Mauritz, Adidas and Zara in the direct proximity. The area shows the highest concentration of retail flagship stores in Berlin together with the highest pedestrians frequency. In 2016 the maximum rent in the eastern section was approx. 180€/sqm, while the middle and the western part of Kurfürsten performed with 130 EUR/sqm and 300 EUR/sqm.

Restaurants, automotive, hotels, theaters and cinemas can be found between Fasanenstraße and Bleibtreustraße. Impressive Wilhelminian historic buildings underline the exclusiveness between Bleibtreustraße and Olivaer Platz with Dolce&Gabbana, Louis Vuitton and Prada stores.

109.500
sqm
Office space turnover
14,8
EUR/sqm
Ø Office rents
24
EUR/sqm
Peak rents office

Population and leisure in Charlottenburg

Charlottenburg has a fantastic local structure in terms of recreational areas. Teufelsberg, the baroque „Schlossgarten“, the Lietzenseepark and the cosy garden memorials close to the Savigny Square are just a few of them.

The district is home to a mixture of long-time residents and “New-Berliners” at the same time. With original Berliner pubs and restaurant the neighborhood at Klausernplatz is considered as the classic-old Berlin. Many fancy restaurants, bars and pubs from normal to high-end pricing can be found around Savignyplatz and Kurfürstendamm. If one wants to experience some culture this area also offers many options for example jazz locations such as “Quasimodo” and “A-Trane”.

The total population of Charlottenburg is approximately 185.000 (2015). The quarter of Reichstraße, which reaches from Theodor-Heuss-Platz to Spandauer Damm holds 14.300 residents making it the most populated quarter of the district. Residents enjoy a variety of shopping opportunities and a well-developed industrial infrastructure with many employers.
The quarter around Auerburger Allee 2015 shows the longest-lasting occupancy rate registered in Charlottenburg. More than half of the residents have been living in the same housing unit for over 10 years. At the same time the proportion of children between 0 and 15 years is relatively low with only 6,12% (average in Charlottenburg: 11%).
Around Kranzallee the proportion of children under 16 years is pretty high at 14,86%.
The district offers a number of excellent schools and cultural facilities:


• 23 elementary schools
• 8 integrated secondary schools
• 9 high schools
• 4 schools with focus on special needs education
• options to actively participate in a parliament for children and teenagers

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