Microanalysis real estate market Berlin
Micro market report Neukölln
Neukölln is one of Berlin’s hotspots. The neighborhoods are populated by young, international cultural-interested people. Tourists, students and young families are attracted to the atmosphere of the district. Acting workshops, studios, poetry slam, small production sites and hip stores make Neukölln interesting and diverse. Every month new galleries and pubs open up in the neighborhood of Reuterkiez, Richardplatz and along Landwehrkanal.
Quarters around Hermannplatz and along Landwehrkanal are also known as the area of “Kreuzkölln” because they are close to the neighboring district Kreuzberg.
Neukölln has the size and structures of a small town with a population of 330.000. From urban structures in the northern part of the district, to classical old building structures and mixed building structures with row houses, single and two apartment houses and a suburban atmosphere in the south. Neukölln is known for the different residential areas and is divided into Neukölln, Britz, Buckow, Rudow and Gropiusstadt.
Real estate market Neukölln
Even though most residential areas are kept very simple, they still have a comfortable, welcoming atmosphere and real estate Berlin-Neukölln is highly demanded. In almost no other district such a rapid increase of real estate prices per square meter can be registered.
Evolutionary stages of the real estate market in Neukölln
Chart above: The 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 development of the average offering price of all apartment types and their price segment.
Apartment prices in Neukölln
Prices for apartments in the popular district located next to Kreuzberg are comparatively low. Nevertheless, a rise of prices of 21 percent from a calm 2015 to 2016 could be noted. With a realistic price evaluation it takes about 12 weeks to sell real estate in Neukölln, which is faster than in other districts of Berlin. Existing apartments were offered for ca. 3.200 EUR/sqm in 2016. Higher prices per square meter can be expected in the areas of Schillerkiez, Richardplatz and by the waterfront in Kreuzkölln. Prices for real estate in Neukölln doubled between the years of 2007 and 2016.
The rising number of new building projects is striking, especially since there have not been many new building projects until recently. New built apartments also have an effect on the price development: prices for new apartments were above 4.600 EUR/sqm.
Good investment opportunities will come up with the next years because many buildings in Neukölln have not been reconstructed yet. Environment protection acts and redevelopment areas have a regulating impact on the price development. About 15 percent of all 155.000 apartments in the district are owner occupied whereas the other 85 percent are rented out (source: Department for statistics Berlin-Brandenburg).
Rental situation in Neukölln
Rental prices for apartments offered now are at about 10,32 EUR/sqm whereas the rental prices set years ago are between 5 and 6 EUR/sqm. According to the Department for statistics the average size of an apartment in Neukölln is 69,7 sqm, which puts Neukölln on the last position in Berlin for that section. On average a living area of 36,1 sqm per resident is provided.
A mixture of well-preserved old buildings from the Wilhelminian time and apartment blocks from the 1930s characterize the north of Neukölln. Single-family houses and suburban settlements with multi-story buildings are part of the area south of the orbital railway (“Ringbahn”).
Improvement areas are Karl-Marx-Straße and Sonnenallee, which are in the northern part of the district. With more than 250.000 residents from over 160 nations the quarter is a cultural and social center (source: Senatsverwaltung für Stadtentwicklung und Wohnen). It is also the administrative center of the district. Karl-Marx-Straße is expected to develop into an attractive metropolitan area within the next 15 years.
The transformational process of the city highway turned the area between Delbrückstraße and Jahnstraße in Neu-Britz into an improvement area as well. On top of the highway tunnel a park (Carl-Weder-Park) has been developed. Besides the reconstruction of old apartment complexes the construction of new buildings is in the planning.
The architecture of Britz has everything from urban to suburban to offer. The ideal residential area is the settlement between Pintschallee, Rungius-Straße, Hannemann-Straße and Franz-Körner-Straße built in 1907. Two- and three -story high apartment complexes were built in the outer part of the settlement. In the center are row houses with backyards. Another famous settlement and even an UNSESCO World Heritage Site is the so-called “Hufeisensiedlung” (horseshoe settlement) westwards from Fritz-Reuter-Allee. It was built in 1920 accordingly to building plans of the architects Bruno Traut and Martin Wagner.
Rudow’s and Buckow’s architecture is quite similar: single- and multi- family houses as well as apartment building blocks. Many places around the residential areas are greened.
If you would like to read more about neighborhoods with single-family houses in particular, please check out our posts about the urban districts Britz, Buckow and Rudow.
Neukölln as a business location
Neukölln plays an important role as an industrial district as about 22.000 businessmen- and women are living here according to the district exchange. About 60.000 workplaces with a contribution to the social insurance are realized thanks to about 5.500 businesses. The variety of businesses is very heterogeneous and goes from innovative to smaller and middle class business as well as some big companies. The excellent water and rail links and of course the access to highway A 113 play an important role for the districts industry and businesses. Another advantage is the connection to the base for science in Adlershof and the planned airport Berlin-Brandenburg-International, which will add even more value to the district’s location.
Very different business industries have their base in Neukölln: electronic, automotive engineering, food, pharmacy and cultural and creative science. BIOTRONIK, Mondeléz International, Philipp Morris, PUK-WERKE and Viessmann are just a few of the important companies working in Neukölln.
The total industrial real estate in Neukölln is about 207 hectare large. The four largest of them are the following:
- Teltowkanal-Süd: ca. 35 hectare
- Grenzallee: ca. 140 hectare
- Northern Sonnenallee: ca. 71 hectare
- Kanalstraße: ca. 61 hectare
Retail and service companies also benefit from Neukölln’s location. Also in the district: Berlin’s second largest shopping mall “Gropius-Passagen” and Germany’s major hotel chain “Estrel Berlin” at Sonnenallee with over 1.125 rooms and suites available.
Neukölln has it all: individualism, multiculturalism and integration
The 330.000 residents of Neukölln make it one of Berlin’s highest populated districts. Not long ago many people had a negative image of the district and connected unemployment, crime and an uneducated population with migration background with it. Not so today: the district almost went trough a 180-degree transformation and turned out as a multicultural micro-metropolis. It is central, young, diverse and international.
Once unkempt and desolate neighborhoods are full of life now because of the many young artists, students, international “New-Berliners” and investors. It all started with the area between Maybachufer and Sonnenallee (Kreuzkölln) and Nord-Kiez in the area around the former airport Flughafen Tempelhof. By today many smaller quarters are booming too.
It should be noted that the positive development of Neukölln is not only a masterpiece by the young, creative residents who moved here. Since 1999 programs were used, which react to data of social structures. Working with the program resulted in 11 quarter-management areas, which are home to more than one third of the district’s population. One of the areas is located in Gropiusstadt (south) the other ones in northern Neukölln.
Another successful support program in Neukölln focuses on the integration of residents with a migration background: “Stadtteilmütter”. Since 2007 about 360 women with a migration background (mostly Turkish and Arabic) have been trained to support families in their community. Focus is put on education, language, health and upbringing of children. The goal is to have these trained women help families by motivating and sensitizing them as well as mediating between family members in order to improve the communication between parents and children.
Neukölln has a colorful palette of culture to offer. The opera of Neukölln is creative, dedicated and undogmatic. Once a year visitors get the chance to watch a musical by Peter Lund and students of the University of Arts.
The “Heimathafen Neukölln” located in the ballroom of Rixdorf is another beautiful place to visit with the architecture of a music hall, new-baroque style and elements of the Art Nouveau. On the program list of “Heimathafen Neukölln”: theater, musicals, concerts and readings. Concerts are also played at “Schloss Britz” (castle), which has been landmarked since 1971. A mirror of the castles history of 300 years is the 1,8 hectare large surrounding garden.
It will not be hard to find a place for free time, sports and recreation in Neukölln. Britzer Garten, Kölnerpark and Hasenheide are just a few of the recreation areas to spend time at.