From a working-class district to Germany's hippest district
Property market Kreuzberg
It was just 20 years ago that Kreuzberg still had its genetic heritage as an original working-class district. Lowest standards, precarious living situations in rundown old buildings, outside toilets, the apartments mostly without bath or hot water and almost always stove heating. In the 1970s, it seemed more efficient to tear down entire blocks of houses and replace them with functional buildings. Protests by the population prevented the city planners from causing even greater damage. Today, progressive, modern Berlin is omnipresent in Kreuzberg. Thousands of young people from almost 200 nations live in Kreuzberg, populate the neighborhoods and provide an agile cultural, street and nightlife 365 days a year. With the fall of the Berlin Wall in 1989, the former border district suddenly found itself back in the middle of Berlin. The Kreuzberg scene was scattered into newly emerging neighbourhoods in Prenzlauer Berg, Friedrichshain and Neukölln. For years a migration movement took place, which only stopped at the beginning of the new millennium and today leads to a wave of immigration, catalyzing a structural shift. The reputation improved with the influx of international employers and founders, artists and young professionals settling here. Even though Kreuzberg is very popular, the number of owners living in their apartments (and not renting them out) is only increasing slowly. Kreuzberg continues to be a district of renters and it is not surprising that the vacancy rate is very low.
Apartment prices Kreuzberg
In Kreuzberg, despite rising prices per square metre, there are signs of a slight slowdown in the price trend for apartments. In the second quarter of 2018, despite an increasingly severe shortage in the condominium sub-market in Kreuzberg, an increase of "only" 6.6 percent was recorded for the 12-month period compared to the previous year. However, the overall trend, i.e. further price increases, will continue in 2018. In the period from 2006 to 2018, the total upswing in prices was around 260 percent. The average offer price for all types and sizes of apartments in June 2018 is approximately EUR 4,850 per square meter of living space. In 2017, double-digit growth rates were only just missed. With the growing number of protected milieu areas, supply continues to shrink as a result of the Conversion Ordinance. As a result, the pressure in the existing segment is increasing.
Price segments in Berlin Kreuzberg
The price structure in Kreuzberg is shifting towards the medium and high segments. Apartments below EUR 2,000/sqm are no longer offered. The total offer continues to decrease. The conversion ordinance (Umwandlungsverordnung), which makes it more difficult to divide up apartment buildings into residential property, is causing a further shortage and rising prices. The rising prices per square metre are accompanied by higher rents.
Apartment buildings in Kreuzberg
Since 2004, apartment buildings in Kreuzberg have recorded constant double-digit price increases. When we started recording in 2006, the average price per square metre for a tenement building in Kreuzberg was around 800 euros. In the years 2005 to 2007, the majority of the apartment buildings in Kreuzberg ranged within an average offering corridor of 600 to 900 euros per square meter of living space. Units with larger maintenance backlogs and vacancies were in some cases traded much more favourably. The average size of apartment buildings in Kreuzberg is around 1,700 square meters. In the years following the subprime crisis in the USA and the subsequent financial crisis in Europe, the market reached an all-time high in supply. Almost 100 apartment buildings were offered on the market in Kreuzberg in 2009. In 2017 there were 17 apartment buildings. The market interventions by the Kreuzberg district in the form of conservation statutes have been leading to a price stabilization in 2017. In 2018, prices moved sideways. According to our evaluations, the rounded average was EUR 2,600 per square metre of living space.
Tenements in Kreuzberg
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Kreuzberg: Influx and outflux (2017)
Even though the district is one of Berlin's most sought-after locations for years now. In internal relations with other districts, the housing shortage in Kreuzberg is reflected by an overall negative migration balance to other districts. Click on the legend to show and hide values. Move the mouse over the bars to find out the number of migration movements.
God save the Queen and Kreuzberg
Below you can see the migration flows between Kreuzberg and the European Union in 2017.
In Kreuzberg, the top 3 is made up of the United Kingdom, Italy and France. Within Berlin, the inhabitants of Kreuzberg are currently moving to other districts where rents and purchase prices for housing are lower. The situation is different with regard to the arrivals and departures of the Member States of the European Union. No Member State shows a negative migration balance.
Kreuzberg: Migration flows European Union 2017
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What the population and living in Kreuzberg is like…
The structure of Kreuzberg’s population is dynamic and ever changing. Half of the 151.500 (2015) people living here have a migration background. Students, who moved here years ago because of low rental prices, are becoming young professionals and starting their family. They cover the middle class of Kreuzberg and are part of the reason why the buying power in Kreuzberg is rising. Young residents and international visitors value the variety of pubs, bars, clubs and the diverse music scene.
Kreuzberg is diverse and multi-cultural with its galleries, bookstores, clubs, cafés, showrooms and artist scene. Also the alternative health scene settled here. Besides the alternative part of Kreuzberg exclusive restaurants and boutiques can be found, which goes back to the rising buying power. Not long ago the restaurant “Horvath” at Paul-Linke-Ufer got its second star from “Guide Michelin” (a guide for restaurants, hotels and travel).
Thousands of visitors come to Kreuzberg every year for events like the carnival of cultures and the street festival on the 1st of May. Many tourists prefer staying in Kreuzberg during their stay in Berlin to experience the culture and events here. The number of holiday flats got higher and higher throughout the years, which is why the prohibition of misuse has been introduced.