Microanalysis real estate market Berlin
Micro market report Pankow
Pankow has the size of a midsize German town with more than 100 square meters, 13 urban districts and a population of 390.000. It is located in the northeast of Berlin. Neighboring districts are Lichtenberg, Friedrichshain-Kreuzberg, Mitte and Reinickendorf as well as the city boundaries to the counties Oberhavel and Barnim in Brandenburg.
Pankow is and has always been a well-kept and bourgeois district. Besides many embassies located here it was the home of choice to many top-ranking politicians of the GDR during the times of the German wall. Even though these politicians are not living in Pankow anymore and most embassies moved to Mitte close to the quarter of governance, some embassies of smaller countries still reside here.
The high number of 13 urban districts offers a variety of residential areas and concepts of living. It goes from glamorous mansion quarters, classic new buildings and single-family houses to solid and modern areas of multiple dwelling units such as the one in Französisch-Buchholz. Large urban districts of Pankow are Prenzlauer Berg and Weißensee. Smaller urban districts such as Blankenfelde and Rosenthal usually do not make it feel like living in a big city at all.
One of Berlin’s most popular neighborhoods is the “Florakiez”, which is located around the train stations (U-Bahn and S-Bahn) of Pankow. The lively and green neighborhood was highly demanded in the past years and changed from an insider tip to hyped residential area. This is also why people who want to live here need to have the according budget. Real estate Berlin-Pankow is highly demanded. In order to control rental prices, luxury redevelopments are prohibited since January 2013.
Majakpwskiring is one of the fancier areas and was home to many politicians during the GDR. The mansions, apartment complexes and multiple dwelling units are all well-kept. Not only very different residential areas but also a population from young to old is part of Pankow’s character. Positive aspects of the district are the low unemployment rate, a comparatively high per-capita income, good schools, comparatively low rental prices and well-kept buildings.
Evolution of the real estate market in Pankow
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.
Real estate prices in Pankow
During the past years a constant increase of prices for apartments could be registered. From 2015 to 2016 the increase was around 11 percent. Nevertheless the pricing was at a quite moderate level between 3.000 EUR/sqm and 3.250 EUR/sqm. Real estate prices for top floor apartments are about 800 EUR above that, whereas 4.050 EUR/sqm can be calculated for penthouse apartments. Transactions were not that high in 2016 partly because the number of offered apartments is decreasing. In 2016 only 900 apartments were offered, which is the lowest since 2008.
It should be also noted that the living space is decreasing. Today it is at about 88 sqm, whereas it was at 97 sqm in 2007.
In 2016 about 340 new built apartments were offered for an average price of 4.300 EUR/sqm. It usually took 8 weeks to sell a new built apartment.
Potential for innovations: biotechnology and economic systems for health
The innovative potential of Pankow is quite high due to the heterogeneous structure of industries. The urban districts are each focusing on different segments. Creative businesses are located in Prenzlauer Berg, a competence center for rail vehicle can be found in Wilhelmsruh, Weißensee is the base for mechanical engineering and small businesses. Buch is a developing location for biotechnology. The location is characterised by a comprehensive approach that encompass research of the causes of disease, the innovation of new medications and patent orientated clinical research. Parts of the economic base are institutions and research centers like Leipniz-Institut for molecular pharmacology, Max-Dellbrück-Centrum for molecular medicine (MDC) and the Biotechpark with a center for innovations and development.
Living in Pankow
Pankow has the highest population of 390.000 residents and is the second largest district of Berlin. The positive development of population is expected to continue in the coming years if birthrates and immigration to the district will go on. Even in 2015 the population of residents between the age of 0-18 years (17,43 percent) was higher than the one of seniors over 65 years (15,14 percent). Elementary schools are reaching their capacities because of the high numbers of first to six graders. The building of new schools is already planned because young families keep on moving to the district. Great recreation opportunities for kids are already given with the farm “Pinke-Panke”, the theater “Varia Vineta” and the sports club “Baba”.
Adults get the chance to enjoy a nice walk through Bürgerpark along the river Panke. Another beautiful park to spend the free time at is the park around the castle of Schloss Schönhausen. The castle itself is also worth visiting with its baroque architecture and furniture of the 18th century.