Microanalysis real estate market Berlin
Micro market report Friedrichshain
Friedrichshain is central, hip and creative. The district that neigbhors to Kreuzberg reaches from the south up to the banks oft he river Spree. Old depots at Spreeufer, concrete slab constructions (Plattenbau) in the western part or “Stalin buildings” at Karl-Marx-Allee are witnesses of Friedrichshain’s younger history.
Friedrichshain was several times subject to comprehensive transformation processes. Many formerly very dense quarters were almost totally destroyed in WW2 so that a reconstruction was not possible or, at least, not feasible. With the division of Berlin the district found itself in the Soviet sector and moved geographically close to the Eastern city center. In the early 1960s, when the rebuilding in East Berlin began, a paradigm shift transformed the structure of Friedrichshain. The formerly small and dense quarters were replaced by a gigantic stalinistic architecture along Karl-Marx-Allee.
The fall of the Berlin Wall initiated another turnaround in politics and urban development. Today different identities and unique life stories shape the district’s character, with a mixture of prewar architecture, stalinistic and still a little bit of GDR-culture.
In 2001, the neighbor district Kreuzberg merged with Friedrichshain, which is why the district is also referred to as “Friedrichshain-Kreuzberg”.
Different characters of residential areas can be found when comparing the western and eastern quarters of the district. The western part is known for concrete slab constructions, whereas the east is characterized by historic buildings of the Wilhelminian time. Apartments in the stalinistic buildings at Karl-Marx-Allee and Frankfurter Allee are highly demanded not only thanks to the central location. The apartments in the huge condos have practicable cuts, an easy access to the public transportation system (BVG), many restaurant and cafés all around and a growing new and young community.
The Boxhagener neighborhood, which is right in the middle of Revaler Straße, Warschauer Straße and Frankfurter Allee, is quite popular among New-Berliners, students and career starters. Many bars, pubs, restaurants and clubs around Simon-Dach-Straße are tempting for locals and tourists. Also very popular: Samariterviertel and locations along Warschauer Straße. High standard Berlin real estate can be found in the quarter of Stralauer peninsula, which has shown a tremendous growth in the past years. Especially during very cold winter days the frozen bay attracts strollers and ice-skaters.
Real estate market in Friedrichshain
Most areas in Friedrichshain are officially categorized in simple and medium residential areas. However, there is a high demand for real estate Berlin Friedrichshain.
Evolutionary steps of the real estate market in Friedrichshain
Chart above: Three different price segments show how the price structure in the district has changed between 2007- 2017. It also describes how many apartments have been offered in each price segment. The curve represents the average offering price of all apartment types and their price segment.
Real estate pricing in Friedrichshain
The average asking price of all Friedrichshain apartments is at 4.000 EUR/sqm in 2017. There has been a constantly high rise of prices in the last years for real estate Berlin-Friedrichshain: from 2014 to 2015 around 13 percent and from 2015 to 2016 around 5 percent. As a result of the many new building projects, the refurbishment of old buildings and roof storey development the real estate market in Friedrichshain offers many penthouse apartments and attic flats . The average price for a roof top apartments is almost at 5.900 EUR/sqm.
Industry in Friedrichshain: the past vs. today
The history of Oberbaum City, which today is one of Berlin’s most popular business locations, goes all the way back to the 19th century. It started with Berlin’s first water works at Stralauer Tor in 1856. The reason why this part of the district is also called “city of lamps” (Lampenstadt) is that the German company Glasglühlicht AG (today: Osram GmbH), which produced light bulbs, bought the area. Today an emblem of the reconstruction of one of the biggest fields of industry is “Narva”, a 63m-high-rise building at Berlin Ostbahnhof. After the German reunification the production of light bulbs by the company stopped. The historical, landmarked buildings have been restored into modern office and industrial real estate, which is used by established but also young and creative companies. More than 3.500 people are employed at companies in Oberbaum City.
Oberbaum City is part of the investor’s project “Mediaspree”, which plans hotels as well as office and media buildings alongside the Spree. The project is controversial and therefore highly discussed. Some realized projects by Mediaspree are the Mercedes-Benz-Arena and the German headquarters of Universal Music.
One of Berlin’s most popular and youngest districts
The population of Friedrichshain is at 128.370 (24.500 less than Kreuzberg) with an average age of 33 years, which is 10 years below the average age in Berlin. 64,62% of all households in Friedrichshain are single households, which again indicates the low average age as well as individual ways of living. Creative crowds and the various cultural events are reasons why so many young people are interested in living here. Simon-Dach neighborhood and Warschauer Straße are almost more visited at night than during the day thanks to the many clubs and bars. Friedrichshain is also known for individual stores, cozy cafés, exotic restaurants and startups.
But Friedrichshain has far more to offer than its lively and diverse characteristics. Students who moved here years ago because of low rental prices in the past now are young professionals, moms and dads. Quarters with many children between the age of 0 – 18 years are: Hausburgviertel (20,61%), Stralauer peninsula (20,1%) and Samariterviertel (14,72%).
There is a variety of schools in Friedrichshain:
- 13 elementary schools
- 6 integrated secondary schools
- 5 high schools
- 2 schools with focus on special needs education
Many options for kids and teenagers are given thanks to Volkspark Friedrichshain (park): from recreation and sports to playgrounds. Many restaurants, cafés and sights such as the famous “Märchenbrunnen” are located at the urban park.