Berlin Real Estate Report 2018

Low interest-rates, a continuing population growth and the unbroken strong demand will continue to raise prices on the Berlin real estate market in 2018. Berlin remains an attractive investment location.
Around 27,000 apartments were offered on the housing market in Berlin from January to August 2018. According to our analyses, the average requested price per square metre was approximately EUR 4,400.00 as of August 15, 2018.

The price increase compared to the same period last year is approximately 14 percent. Anyone who bought his or her apartment in 2008 for around EUR 1,900/sqm on the Berlin property market can currently offer it for around 2.3 times this amount.

Driven by growth and migration, the demand for housing in the capital is estimated at least 135,000 units by 2030. If the Senate does not initiate massive new housing developments, rising real estate prices must also be expected in Berlin in the coming years. Nevertheless, the upward trend in prices is slightly slowing. The Berlin Senate and the districts are pushing ahead with the regulation of the real estate market. Rent increases are under control and real estate sales in protected areas are made more difficult.
In the current situation, differentiated market knowledge and information is required in order to achieve the best possible result in sales and in your investment under more difficult conditions.

Our market report differs significantly from other analyses. We update our figures monthly and have our finger directly on the pulse of the Berlin real estate market. We analyze the development on the basis of millions of data sets and with the experience of many years of successful work.

Contact us, if you want to get one of the best partners in Berlin at your side for your investment or sales considerations.

No sign of stagnation

For readers in a hurry, we have compared the prices for Berlin properties from 2007 with the real estate prices of 2018. In all 24 districts of Berlin, the prices per square metre have at least doubled in the 11-year period (Tegel), multiplying by a maximum factor of 4.2 (Neukölln). The peak in the average offer prices in the segment for existing apartments is, as it was 11 years ago, the district of Mitte, with a rounded offer price of approximately EUR 6,400/sqm. In terms of the relative price development, Neukölln is at the top, where average house prices have risen 4.2 times in eleven years. Kreuzberg is approaching the 5,000 euros per square meter of living space for the first time (existing apartments built until 2013). Moabit is also following behind. We collected the lowest offering prices, as of Q3 2018, in Hellersdorf, Spandau, Reinickendorf and Tegel.

District ranking 2018

District 2007 (rounded) 2018 (rounded) Factor 2007 to 2018
Neukölln 1000 4200 4,20
Moabit 1000 4000 4,00
Wedding 1000 3900 3,90
Marzahn 1100 3500 3,18
Kreuzberg 1600 5000 3,13
Tempelhof 1200 3600 3,00
Tiergarten 1700 5100 3,00
Schöneberg 1500 4400 2,93
Weißensee 1600 4500 2,81
Wilmersdorf 1900 5300 2,79
Mitte 2300 6400 2,78
Friedrichshain 1800 4900 2,72
Charlottenburg 1800 4800 2,67
Spandau 1000 2600 2,60
Reinickendorf 1100 2800 2,55
Zehlendorf 1700 4200 2,47
Lichtenberg 1500 3700 2,47
Steglitz 1500 3700 2,47
Prenzlauer Berg 2100 5100 2,43
Köpenick 1500 3600 2,40
Hellersdorf 900 2100 2,33
Pankow 1600 3700 2,31
Treptow 1400 3200 2,29
Tegel 1400 2900 2,07

Population growth in Berlin

Population growth is a driving factor in the Berlin housing market. In the figures available to us for the first half of 2017, the Berlin-Brandenburg Statistics Office reports an increase in population of 18,400 to 3.69 million people. Growth in 2017 was lower than in the previous year due to a decline in the influx of refugees. Overall, however, population growth in Berlin is unbroken. We compared the districts with the figures for 2016. The table shows the percentage distribution by arrivals from the old and new federal states, Berlin's surroundings and from other countries. The table is sortable. Please select according to the criteria you are interested in.

New arrivals to Berlin by origin (2017)

District Old federal states New federal states Outskirts Abroad
Charlottenburg 28.50% 8.00% 5.10% 63.50%
Friedrichshain 32.90% 9.80% 3.80% 57.30%
Hellersdorf 23.60% 23.50% 24.20% 52.90%
Köpenick 29.00% 19.60% 15.90% 51.50%
Kreuzberg 26.10% 5.30% 2.20% 68.60%
Lichtenberg 23.60% 16.70% 8.40% 59.70%
Marzahn 21.20% 19.80% 13.20% 59.10%
Mitte 28.20% 6.10% 2.80% 65.70%
Moabit 31.90% 8.60% 3.70% 59.50%
Neukölln 27.60% 8.60% 5.10% 63.80%
Pankow 31.80% 18.30% 14.50% 49.90%
Prenzlauer Berg 34.30% 9.00% 3.60% 56.70%
Reinickendorf 24.00% 10.80% 9.80% 65.20%
Schöneberg 29.30% 7.30% 4.60% 63.30%
Spandau 22.60% 10.80% 11.70% 66.50%
Steglitz 30.50% 11.30% 9.00% 58.20%
Tegel 27.20% 13.60% 12.60% 59.10%
Tempelhof 17.60% 6.90% 5.70% 75.50%
Tiergarten 24.30% 5.60% 2.20% 70.20%
Treptow 28.50% 18.20% 13.30% 53.30%
Wedding 28.70% 8.80% 3.90% 62.40%
Weißensee 25.60% 13.80% 9.30% 60.50%
Wilmersdorf 26.70% 7.30% 4.80% 65.90%
Zehlendorf 28.40% 8.30% 11.00% 63.30%

Berlin Real Estate Price Segments 2018

Viewed over the whole of Berlin, according to our analyses, the square metre price for apartments demanded by sellers on the market is approximately EUR 4,100/m² as of March 2018. The prices for existing apartments are more differentiated according to location, age, size and quality as well as typology than in new buildings.

There is a shift in the price range from the lower to the middle and upper price ranges across the entire urban area.

  • The price segment up to EUR 2,000/m² will continue to lose weight in 2017 with less than 5,000 offers. In some districts there were almost no more apartments offered in this segment.
  • The price segment of EUR 2,000/sqm to 4,000/sqm was nearly stable compared to the previous year. It is the strongest market segment with almost 56 percent of all existing apartments on offer.
  • The price range from EUR 4,000/sqm to EUR 6,000/sqm covers approx. 26 percent of the total housing supply in Berlin.
  • The price segment from EUR 6,000/sqm was already 7.1 percent in 2017.

Average offering price of an apartment in Berlin: 4.400 EUR/sqm

According to our research the average price per square meter is at 4.400 € in 2018. This analysis includes the whole area of Berlin and all existing buildings. More significant than for new built apartments, the location, age, size, quality and type are important influential factors for existing apartments.

It should be noted that almost one half of all new built apartments and houses are meant for ownership not for rental purposes. Many projects have already been permitted and will be offered to the market in the coming years. The pressure on the housing market could decrease with increasing new building projects.

Price Segments in Berlin’s districts

Berlin’s districts are developing in a heterogeneous degree. The lower price segment almost completely disappeared in the districts Mitte, Kreuzberg, Charlottenburg, Wilmersdorf, Friedrichshain and Prenzlauer Berg. At the same time the upper price segment continues to grow. Our district reports show a detailed price evolution of Berlin’s districts from 2007 until today.

Prices by apartment type

4,400 Euro/m² is the average required price for inventory residential units in Berlin excluding new buildings. Depending on the apartment type, prices may differ to a greater or lesser extent from the average.

In the district report section we have analysed the purchase prices for you in detail, depending on the type of apartment and the size of the apartment.

Continued influx will drive market for decades

The dynamic development on the Berlin housing market and the rising demand, which is expected to remain strong, make Berlin a top location for investments. By 30 June 2017, the population of Berlin was about 3,690,000 people.

The place to be

No other place in Germany will need, plan and build as many apartments in the coming years as Berlin. Every year, people from about 250 countries come to the capital. Berlin is one of the world's most sought-after metropolises. In 2016, the population grew by about 60,000 inhabitants as a result of immigration. There are no reliable figures for 2017 yet, and it is assumed that there will be a growth of about 18,000 people. Our world map above shows which countries of origin the new Berliners come from.

Real estate in Berlin at a glance

2.084.336
Households in berlin (2015)
320.302
Residential buildings in berlin (2015)
541
Apartments per 1 000 inhabitants
39,5
sqm
Living space per capita
73,1
sqm
Living space per apartment
1,77 Personen
Ø Haushaltsgröße

Berlin, the city of tenants
Many upcoming investment opportunities

Germany’s capital is the city of tenants, which means excellent investment opportunities. Out of a total of 1,9 Mio. apartments in Berlin, 1,6 Mio. of them are rental apartments. About 18 percent belong to housing associations and 12 percent to cooperatives. The remaining 70 percent are owned by big institutions or private persons. A few examples show why the real estate market in Berlin is so interesting despite or just because of the rental market.

  • Young, high-income households are immigrating to the city. Households with medium to high incomes are growing. New segments of buyers are developing, which is quite normal for the acquisition of property.
  • Even though the number of completed buildings is rising, an excess demand is still expected. Long-term investment opportunities are also given with the building of rental apartments.
  • In an international comparison Berlin shows moderate prices. Prices per square meter are very attractive for international buyers. The focus is not mainly put on the return but on the potential increase in the value of a property. Choosing to invest in Berlin real estate is safe.

Assumption

If 400.000 people move to Berlin until 2030, with 1,77 people per household, around 226.000 apartments have to be built. This means 17.4000 apartments have to be built per year between 2017 and 2030. With 17% of owner occupied housing, around 2.780 freehold apartments per year are theoretically needed.

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