Pioneer of Berlin's scene districts
Property market Prenzlauer Berg
Prenzlauer Berg was an independent district until the 2001 district reform. Today it is a part of Pankow. Prenzlauer Berg, usually called "Prenzelberg", has many small neighbourhoods and became very popular shortly after the fall of the Wall. After the reunification, there was a fundamental change in the district. The old building substance, which had remained largely unscathed by the war, was largely renovated and the original Berlin milieu with a pronounced artistic impact was increasingly supplemented by the alternative scene. The many extensive renovations of old buildings already led to a population turnover in the 1990s. Many West Berliners searched and found their new home in the hip Prenzlauer Berg. Today Prenzlauer Berg is a place of tranquillity with a dash of normality in everyday life and a lively and dedicated community.
Apartment prices in Berlin Prenzlauer Berg
Prenzlauer Berg plays a forerunner role in Berlin. When nobody believed in a Berlin boom in 2006/2007, small investors and owner-occupiers were already buying apartments in Prenzlauer Berg at comparatively high prices. From EUR 2,100/sqm living space, the offer prices in Prenzlauer Berg have since worked their way up above the EUR 5,000 mark in 2018. The district (Pankow) is contributing to this development by significantly reducing the supply of housing in Prenzlauer Berg with 13 milieu protection areas (as of 2018) and the application of the conversion ordinance (German term: Umwandlungsverordnung). The properties offered on the market from earlier divisions are in high demand and sold at correspondingly high prices. Offer prices per square meter have risen by about 12 percent in the 12-month period, as of August 2018.
In the particularly popular neighbourhoods such as the Bötzow and Kollwitz neighbourhoods, around Arnimplatz, at the old Schlachthof and Helmholtzplatz, chic and stylish new and old buildings line the streets. In these locations, the prices for existing properties catch up with the prices for new buildings.
Price segments in Prenzlauer Berg
The chart below shows how the "Umwandlungsverordnung" (Conversion Ordinance), which has been in application in the milieu protection areas in Pankow/Prenzlauer Berg since 2015, is leading to a shortage of supply. Almost 5,000 apartments were offered in Prenzlauer Berg in 2009. Since then, the number of marketed apartments has been steadily decreasing. In 2018, it will be barely or just above the all-time low of 2016, with just under 1,700 units. The segment below EUR 2,000/sqm has disappeared. The main part of the offered apartment runs in the segment of 4.000 - 6.000 Euro. The area above EUR 6,000/sqm is growing.
Picture below: The evolutionary stage of the housing market Prenzlauer Berg. Changes in the price structure, development of the average offer price and number of apartments offered.
Berliners are leaving. Europeans are coming.
In 2017, the balance in relation to internal migration in exchange with Prenzlauer Berg was minus 1,672. 747 Berliners remained in Pankow, another 423 moved to Lichtenberg, 388 to Weißensee. A total of 4,865 people moved to the district from the German states, 4,067 moved away. The leader is North Rhine-Westphalia with 846 new arrivals to Prenzlauer Berg (563 departures) followed by Bavaria with 692 new arrivals (471 departures).
The United Kingdom leads the EU list (438), followed by Italy (372) and France (317). The gain from the EU amounts to a total of 1059 persons.
Prenzlauer Berg: Influx and outflux European Union 2017
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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.