Microanalysis real estate market Berlin
Micro market report Lichtenberg
After years as a Berlin outsider district, Lichtenberg has recently gained a super reputation. It has far more to offer than the large settlements of concrete slab construction. Since 2010 the population is growing again, after years with strong migration tendencies to other districts.
Lichtenberg is divided into 10 heterogeneous urban districts. Some show the classical old Berliner architecture and others are charactierized by concrete slab constructions from the GDR times. Nevertheless both of them find their target group of renters. Reconstructed classical buildings in the area of Frankfurter Allee north, Victoriastadt and Kaskelkiez are very popular.
A special focus should be put on the well-established art district at the Rummelsburger center with charming galleries, ateliers, cafés and music theater “canteatro”. In Rummelsburg, in Victoriastadt, the superlative of the district can be found: the first concrete residential settlement built between 1872- 1875.
The architecture of the “new building method” (das “Neue Bauen”) by well-known architects from the 1920s can be seen all around Lichtenberg. Parts of the modern architecture are “Sonnenhof” by Erwin Gutkind, “Reformschule” by Max Taut or “Waldsiedling Lichtenberg” by Peter Behrens.
In 1962 the mass production GDR project “P2” has been tested for the first time ever in the Erich-Kuttner-Straße (in the urban district Fennpfuhl). The building is landmarked since 1980. The idea of the test building was the concept of a variable way of living. Every person using the apartment should be able to realize his or her individual ideas of how the apartment should look like. The idea did not go hand in hand with the financial possibilities and the ideological concept of the GDR, which is why P2 has been constructed much cheaper and simplified at the end.
After modernization and reconstruction the residential areas developed a well working infrastructure and greened areas. The different types of GDR concrete slab constructions are very popular among “New-Berliners”.
Lichtenberg offers great access to the public transportation system and quickly takes the passengers to other districts in Berlin. The mixture of big city feeling and rural idyll is also very attractive for young families.
Real estate prices in Lichtenberg
The real estate market in Lichtenberg is currently very active. Around 280 new built apartments were offered on the market in 2016. Lichtenberg also seems to be a good location for micro apartments. Reasons why building projects are working so well in Lichtenberg is the excellent accessibility and high, sustainable demand. The potential of renting out apartments in Lichtenberg is very high because of its location and structures.
The development of Lichtenberg: from industrial to business district
Lichtenberg has a diverse history of more than 700 years and for the first time appears in documents in 1288. What started as a small village and developed to an industrial district is an attractive business location for service and technology companies today. The successful story of Lichtenberg began in 1891 with inventions by Hugo Hartung and Paul Schmidt. In 1900 Willy Abel developed the first automat for postal stamps. The iron and steel construction company “David Hirsh” built/rebuilt the Berliner Dom, Nikolaikirche, KaDeWe and the globe of the Berlin TV tower.
Lichtenberg’s economy developed quickly during the industrialization. In the mid 1920s more than 1.200 companies had settled here. After WW2 was over, production started again in 1952 and was successful throughout the years of the GDR.
With the German reunification and the subsequent reorganization and transformation of the business landscape Lichtenberg’s importance as an industrial base dropped. Today the Vietnamese Dong Xuan Center is in the same building where once “VEB” a company, which produced electrical coal, was located.
Almost nothing here reminds of the past and the Vietnamese community, tourists and Asia-Fans stroll through the halls of the market.
Today small and medium-sized trade, service and craft businesses settle in Lichtenberg. But the location is also attractive for some bigger fishes like IKEA. The company opened Germany’s largest store at Landsberger Allee.
Also the job market in the district has considerably improved. The unemployment rate was at 8 percent (September 2016), which is about 1,3 percent better than in the previous year. The unemployment of the youth also improved about 0,6 percent and is at 7,7 percent now.
Living in Lichtenberg
The district gains popularity and has just beaten its record: today 275.000 people live here. Between 2011- 2015 almost 19.000 people moved to Lichtenberg. The growth of 6,9 percent definitely is an indicator of how attractive the district is.
The age group of 27-45 year olds is the proportionally largest group in Lichtenberg, including many families with children. Most of them live in the quarters of Karlshorst, Alt-Hohenschönhausen and Friedrichsfelde. The image of concrete slab construction is improving thanks to the high demand of apartments by students especially in the areas of Alt-Lichtenberg and Neu-Hohenschönhausen. Young people enjoy the relatively cheap rental prices in the reconstructed buildings as well as living close to popular districts like Friedrichshain.
Good access to the public transportation system (BVG), modern and hip neighborhoods and recreation areas like parks and even wildlife sanctuaries are good reasons to enjoy living in Lichtenberg. Around the castle Schloss Friedrichsfelde the largest landscape zoological garden in Europe is located. The zoo is home to 6.500 exotic animals from all around the world.
People can also spend their free time with a relaxing walk along the water of Spreeufer at Rummelsburger Bucht. Beautiful lakes, gardens and parks can be explored all the way up to south Karlshorst. Beach bars and beer gardens are the perfect place to be during warm summer days in Lichtenberg.