Microanalysis real estate market Berlin
Micro market report Berlin-Mitte
“Mitte” stands for literally for “in the middle”, which is exactly what the district is: right in the heart of Berlin. Not only geographically but also in terms of economicial, cultural and political life the district has a central position in Berlin. The parliament, Federal Chancellery (Bundeskanzleramt) and ministries are located in the government district, as well as most of the big embassies. As the district consists of the quarters Tiergarten, Wedding and Mitte since 2001, it is an east-west district.
With its many attractions like the Brandenburg Gate, the Boulevard “Unter den Linden” and Checkpoint-Charly, Mitte is definitely a hotspot for tourists.
Important establishments for culture and education are also located here. Berlin’s heart for culture is beating for the Museumsinsel, Humboldt-University, two operas, theaters, Varieté and libraries.
Numerous historic buildings in the western part of Leipziger Straße are very well preserved. While in this section the Federal Ministry of Finance and the Federal Council reside, the eastern Leipziger Straße is characterized by a line of skyscrapers with between eleven to 25 floors. The residential complexes along Leipziger Straße were built in the late 1960ies. The idea was to have a socialist antagonist to the Axel-Springer skyscraper in the western side of Berlin, just a stones throw away.
The area of Rosenthaler Vorstadt is a mix of neoclassical and Wilhelminian buildings with new apartment complexes. The Brunnenstraße shifted from a suburban style to a business and tourist area with the turn of the century. Many residential buildings from 1860 are well preserved and can easily compete with newer impressive business buildings and tenements with many backyards.
Families are very attracted to the neighborhood around Rosenthaler Vorstadt and often decide to move to Arkonaplatz, which is between Torstraße, Friedrichstraße, Rosa-Luxemburgstraße and Spree.
The oldest preserved town-layout of Berlin is Spandauer Vorstadt. The largest courtyard complex in Germany is an impressive historic monument: Hackesche Höfe. The quarters round Hackscher market and Oranienburger Straße are home to galleries, exclusive designer shops, restaurants and clubs.
The big Synagogue is located in Oranienburger Straße. It was built in 1866 when the growing Jewish population asked for a bigger and more representative House for the community. The Nazi pogrom and subsequent bombings in WW2 destroyed a major part of the street. There were almost no restoration programs during the time of the GDR and most buildings were torn down. Only after the German reunification the quarter started to become livelier again. The Centrum Judaicum in the new Synagogue and the presence of many artists makes it one of Berlin’s top locations of today.
Evolution of the real estate market in Berlin-Mitte
Chart above: The three different price segments show how the price structure in the district has changed between 2007- 2016. It also describes how many apartments have been offered in each price segment. The curve represents the development of the average offering price of all apartment types and their price segment.
One of the most expensive addresses in Berlin
Real estate prices in Berlin-Mitte
Mitte does not only have a high stock of apartments, it is also the base for offices, service and trading companies. It is the district with the most expensive residential areas in Berlin. Prices for Berlin real estate in Mitte continue to rise: in 2016 the rise in prices for new built real estate was at 13 percent. According to our research the rise of prices for all other real estate segments was even higher with 14 percent.
The average real estate price of all apartment types in the better areas of Berlin-Mitte was at around 5.650 EUR/sqm whereas the average price of rooftop and penthouse apartments was between 6.450 and 9.100 EUR/sqm. Pricing for high-end real estate in Mitte starts at 15.000 EUR/sqm. The average time it took to sell an apartment of the price segment between 10.000 and 20.000 EUR/sqm in 2016 was 5 weeks. In total 34 apartments in this segment have been marketed and sold that year. Compared to previous years, a growth can be registered in the high-end segment.
On the other end: apartments in the price segment of 3.000 EUR/sqm have not been offered as much as in previous years. In 2016 only 400 apartments were offered whereas it have been around 2000 apartments only three years ago.
The average price for apartments in new building projects is at 6.500 EUR/sqm and at 9.000 EUR/sqm for a penthouse apartment.
Berlin-Mitte: research, chancelleries, associations and government
Standards for research and medicine are extremely high in Berlin-Mitte. One of Europe’s biggest university hospitals the “Charité” is located here. Nobel prize winners for medicine and physiology like Emil von Behring, Robert Koch and Paul Ehrlich did their research at the Charité.
Mitte is also a popular location for national and international companies, chancelleries and associations.
The most popular district for going out
Berlin-Mitte is the place to be. Nights are usually not that quiet around Rosenthaler Platz. Places like the Odessa Bar at Torstraße and Muschi Obermaier Bar in the style of the 60s are always packed with locals and tourists. A place internationally known for great parties is the Kitty Cheng Bar. Even VIP’s go there like the players of the soccer club FC Bayern München. The Alexanderplatz is another excellent place for clubbing. The Avenue club includes two bars besides the dance floor and the Weekend Club with the rooftop offering a beautiful view over Berlin is the perfect place to spend a summer night at.
It should be noted: Mitte is great for clubbing and we only mentioned a few of the many options. Nevertheless Mitte also has a lot to offer when it comes to food. Excellent restaurants are located all around Friedrichstraße and Gendarmenmarkt. Delicious steaks can be enjoyed at the Steakhouse Grill Royal, which list of champagnes is longer than the one for wines. The Borchardt restaurant serves premium French cuisine to its (sometimes quite famous) visitors. Another first class restaurant, which French cuisine lovers should stop by, is the stylish Bandol sur Mer restaurant at Torstraße. Also located there: the Asian restaurant Dudu. The restaurant offers creative dishes inspired by the Vietnamese and Japanese cuisine.
So many options: going out to a club, bar or restaurant or enjoying the cultural sites like theaters, galleries and museums. Mitte is the center of politics, economy and culture in Berlin.