Microanalysis real estate market Berlin
Housing report Wedding
Berlin Wedding is located close to the city center and expected to be an upcoming district in the next years. What was once a neighborhood for the working class has become an industrial, modern district for service companies, science and research today.
Property prices in Wedding
There is a lot of activity in the real estate market in Wedding. On the one hand, the number of apartments on offer was relatively high in the first quarter of 2018 with more than 270 units. In addition, the price increase in the 12-month period from an average of EUR 3,000 to EUR 3,800/sqm is remarkable. This corresponds to a price increase of almost 27 percent.
In line with the trend in Berlin as a whole, prices for attics are developing under-proportionally.
At the interface between Wedding and Mitte, real property prices are blurred. The most sought-after locations, i.e. the neighbourhoods close to the city centre, benefit particularly from the prices in Berlin's most expensive district.
Simple residential areas are mainly located in neighbourhoods with a high stock of old buildings. In many districts, e.g. in the Park Siedlung, a considerable increase in demand and purchase prices can be expected due to the approaching and very likely closure of Tegel Airport despite the referendum.
As an investment, real estate in Wedding is a clear recommendation, whereby many properties are connected with a high initial investment.
Evolutionary stage housing market Wedding
Chart above: 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 average offering price of all apartment types and their price segment.
Wedding: Influx and outflux European Union 2017
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Industrial and business location: Wedding
The senate’s administration for urban development and environment is expecting that living and working are growing closer together in the future. Wedding would be the ideal location for such trend. The administration hosted an architecture competition to get new ideas for the development of the infrastructure of the growing city. The winner: a project at Lynarstraße alongside the railroad. It includes 60 new apartments and studios as well as business locations.
Not only retail businesses but also big industrial companies are based around the area of Müllerstraße. With 25.000 employees, Schering AG was the only DAX- company based in Müllerstraße before it was acquisitioned by Bayer Pharma AG in 2006. The area used by Bayer today extends from Fennstraße, to Mülllerstraße and Nordhafen. Around 6.000 people are employed here today, which is about a third of all employees of Berlin’s pharmaceutical industry.
The former largest production site for light bulbs, the “Osram-Werk” was also located in Wedding between Seestraße and Groninger Straße until the production stopped in 1988. Today the production site is a center for many small businesses, retail firms, service and construction companies and science and research.
Berlin’s former largest industrial location used by the electronic company “AEG” is located between Brunnenstraße, Gustav-Meyer-Allee, Hussitenstraße and Voltastraße. It was an important location for the development of Berlin’s industry. The production of electronical was stopped in 1983 and the production hall in the eastern part of the site was torn town. The remaining halls are still used today by businesses and media companies (Deutsche Welle and Alex Offener Kanal Berlin). The technology and innovation park also settled down at Humboldthain. Further information on that can be read in the following paragraph.
Science and research
Tradition and future are brought together at the technology and innovation park (TIB) at Humboldthain. More than 90 producing and tech-oriented companies are based on the 52.000 square kilometre large area. The mixture of science institutions such as “Frauenhofer IZM”, facilities of the “Technische Universität Berlin” and numerous Start-ups turned Humboldthain into an economic and research landscape.
Out of the corporation with the “Beuth Hochschule für Technik Berlin” important synergies for the economy and industry developed. Beuth Hochschule is the college with the biggest variety of engineering oriented degree programs of the region and is based at Luxemburger Straße. Currently around 12.500 students are enrolled here.
The creative scene of Wedding
Around 57 percent of the 178.380 residents of Wedding have a migration background, which is the highest percentage in Berlin. The social structure of the district is one of the weakest of Berlin. The unemployment rate is quite high and the household net income is low compared to other districts. Negative press about crime related to Wedding often appears in the papers. Nevertheless, more high-income households and students begin moving to neighborhoods like Brüsseler Kiez, Sprengelkiez and around Leopoldplatz. Reasons for that are the convincing locations of the district close to the city center but also the many old buildings with beautiful stucco facades. Especially attractive neighborhoods are around Leopoldplatz, Osramkiez and Nordufer. Popular scene locations like the club Humboldthain, the pub-restaurant Schraders, a creative backyard café and the student pub Kiki Sol
are particularly popular among creative and young people.
Simple apartments with compact sizes are the dominating type of real estate in Wedding. With many shopping, service and administration facilities quarters in the Wilhelminian style are extending from southern Seestraße to Alt-Mitte. During the mid 1990s the street Müllerstraße went through a negative structural change, which included serious deficits of the functional and urban planning. The street has been declared as an improvement area since 2009. The closed apartment blocks (Blockbebauung) built before 1919 have a high baukulturelles potential. The senate plans to improve cultural and educational offerings, the management of shopping streets and the public participation. There are a few other improvement areas in Wedding besides the one at Müllerstraße, which are going to be improved and developed together with the quarters management in order to offer a better living situation for the residents.
The neighborhood “Brunnenviertel”, which is located in the southwest of Wedding, also gets funding support. Many backyards of the new apartment complexes or reconstructed old buildings have been greened. The apartment complexes have been comprehensively reconstructed during the 1970s and 1980s. Settlements in the neighborhood “Parkquartier” were built between the 1920s and 1930s and were supposed to implement the idea of a relaxed and open living. Friedrich-Ebert-Siedlung, the English Quarter and Schillerhöhe are some of the settlements built back then. Schillerhöhe has been landmarked since 1994 and has become an UNESCO World Heritage Site in 2008.
Wedding is right in the process of transformation and has many scene neighborhoods already. Students, parents of students and young professionals especially the neighborhoods close to the district border to Prenzlauer Berg. Young, international artists can find comparatively low-priced apartments or studios in a creative environment.