Microanalysis real estate market Berlin
Micro market report Prenzlauer Berg
Once an independent district, Prenzlauer Berg now is part of Pankow. Prenzlauer Berg is also referred to as “Prenzelberg”. With its many small neighborhoods it has been quite popular since the historic Fall of German Wall. Luckily the original fabrics of the buildings were not destroyed that badly and have been reconstructed on a large-scale. As a supplement to the many residents with artistic interests, the alternative scene of residents moved to the district after the reconstruction. The demographic change already started in the 1990s.
The quarters of the district changed rapidly especially due to the immigration from the new western district. In the 80s it was the center of the artistic scene of the east. It was home to the dissenting part of the population of East Berlin. Partly because of that and also because of the high amount of vacant apartments the left-alternative scene was attracted to the district. Today Prenzelberg is known to be one of Berlin’s most popular neighborhoods with many cafés, pubs, an active nightlife and cultural establishments. The district is visited by locals as well as an international audience.
The more or less smaller district is located next to the districts Pankow, Wedding, Mitte, Friedrichshain, Hohenschönhausen and Weißensee. It is a preferred residential area due to its excellent infrastructure. What was once a small mountain of ruins after World War 2 is now the Volkspark Prenzlauer Berg, located in the northeast of the district. Lakes at this park as well as Ernst-Thälmann-Park are some of the few watersides in Prenzlauer Berg. Other than in Pankow, the buildings are not quite as old and there are not as many greened areas as in the neighboring district.
The most popular neighborhoods are Kollwitzplatz, Arnimplatz, micro locations along Greifswalder Straße and the quarters around Bornholmer and Wisbyer Straße. Especially liked by families are Helmholtzplatz and Bötzowviertel. Once of Berlin’s biggest schools is the Kurt-Schwitters-Gesamtschule at Bötzowviertel.
Real estate market Prenzlauer Berg
The architecture alongside the streets in neighborhoods of Bötzow-Kiez, Kollwitz-Kietz, Arnimplatz, old Schlachthof and Helmholtplatz consists of elegant, classy new buildings and old apartment complexes. Around these locations there is basically no price difference between new and old apartments. Sometimes people are even willing to pay more for well-kept old apartments because they are simply a classic.
Evolutionary stages of the real estate market in Prenzlauer Berg
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 Prenzlauer Berg
For all apartment types an increase of prices around 6 percent from 2015 to 2016 could be noted. For already existing apartments the average price was at 4.000 EUR/sqm and at 5.000 EUR/sqm for new built apartments.
The explanatory power of average indicators is relatively low due to the high segmentation of the real estate market in the district. Offering prices for classical apartments, penthouses or top floor apartments are all in the price range of 10.000 EUR/sqm.
Since the last three years the amount of offered apartments decreased from 4.500 apartments in 2013 to 2.600 in 2016. About 780 new built apartments were offered in 2016.
The pioneer of scene districts
The structure of the people, who are living in the reconstructed old quarters of Prenzelberg, go from high-income households or single households to very individual ones. In most neighborhoods the percentage of academics is as high as 75 percent. Everyone knows that an exchange of classes has happened in Prenzelberg long ago. The average household income was at 20 percent in the 90s, which was below the average in East Berlin. Between 1995 and 2000 a demographic change of about 50 percent could be registered. Already during the times of the GDR people thought of Prenzlauer Berg as a hip district.
Prenzlauer Berg: full of life!
Kollwitzkiez, Winsviertel, Bötzowviertel, Helmholtzkiez and so on… (the list is long). Districts for art and going out are not rare in Prenzlauer Berg. Tourist guides often recommend a visit to the scene boulevard at Kastanienallee (also called “Castingallee”). Kastanienallee and the Gleimviertel are full of life. Locals and tourists also enjoy spending their free time at Mauerpark. On Sundays a popular flea market is opened at the park where everything from antiques and bargains to culinary delicacies can be found. Part of the afternoon program is the karaoke event. People from all around the world enjoy the happy atmosphere at the park and party, laugh and dance together.