One of the hottest hotspots
Property market Neukölln
An agile, young and international scene fills the neighbourhoods of Neukölln. The spirit of change is catching young New-Berliners, students and young families. Start-ups, bars or hipster restaurants are just as much at home in Neukölln as small manufacturers and craftsmen. Pubs and galleries line the streets in the most popular neighbourhoods such as Reuterkiez, Richardplatz and along the Landwehr Canal. The neighbourhoods near the central Hermannplatz and along the Landwehr Canal are known as Kreuzkölln because of their proximity to Kreuzberg. Geographically, this term only applies to the districts along the Landwehr Canal and the Kottbusser Dam. With about 328,000 inhabitants, Neukölln equals the size of a medium-sized small town; with highly dense, urban old building structures in the north, to a loosened mixed development in the south.
Properties in Berlin-Neukölln
Property prices in Berlin-Neukölln have been rising for years. The former underdog has become a popular district. In the third quarter of 2018, the average prices per square metre in Neukölln are just under EUR 4,150/sqm living space. This corresponds to an increase of 9.3 percent over the same period last year. The price increase is slowing down now, but still at a high level. In the most popular neighbourhoods, such as Schillerkiez, Richardplatz and the Kreuzköllner canal side (Landwehrkanal), higher prices are called for - and payed. Overall, real estate prices in Neukölln more than doubled between 2007 and 2018. The district is counteracting the speculation with the remaining (large number of) unrenovated buildings by implementing milieu comprehensive milieu protection areas. Nevertheless, there will still be good investment opportunities in the coming years if investors' strategies are not designed for short-term resale. The ratio of owner-occupied apartments to rented apartments is typically for Berlin with ~15:85. There are about 155,000 apartments in nearly 25,700 residential buildings in Neukölln.
Neukölln is a mega district with a large volume of property sales. The shifts in the price structure are considerable. The share of apartments in Neukölln between EUR 2,000 and 4,000/m² offer price was still almost 100 percent in 2008. Within 10 years, the segment has disappeared from the market. Only 14 apartments below EUR 2,000/sqm were offered in the course of 2018. The middle and higher price segments now each occupy about 47 percent of the market. Increasingly, existing apartments from EUR 6,000/sqm are also entering the Neukölln property market.
Market for apartment buildings Neukölln
The prices for apartment buildings in Neukölln have been developing parallel to the housing market for years: up steeply. However, the former underdog among the Berlin districts is not characterised by constancy; in the 10-year period the prices per square metre were subject to repeated fluctuations. Over the 10-year period, owners can look back on an increase in prices per square metre of around 370 percent. At the same time, the number of open properties on the market has been declining continuously for years. In order to avoid disturbances in the sales process, our company also works exclusively with marketing to internal customers. The average offer price for apartment buildings in Neukölln as of Q3 2018 is just over EUR 3,000 and thus only slightly higher than in the previous year. The reasons for this can be found in past, slight price exaggerations for individual properties and in the context of milieu protection. The almost full-coverage introduction of conservation statutes (German: Erhaltungssatzung) in Neukölln is currently slowing down the market and development a little. Owners and buyers of apartment buildings in Neukölln are restricted in their scope of action, which has a dampening effect on pricing.
Migration flows Neukölln
Interestingly, Neukölln loses more inhabitants internally with other districts than the district gains. This is partly due to rising rents. Low rents used to be Neukölln's trademark. On the other hand, there are significantly fewer apartments available, which causes evasive movements. 1,788 Neuköllners turned their backs on their district in 2017. The population loss is made good by the positive balances of immigration from the EU (+2,707) and Germany (+505). Overall, the district grew by 1,424 inhabitants in 2017.
Neukölln: Influx and outflux European Union 2017
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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.