We know what has to be done!
You deserve the highest price
Owning an apartment building in Berlin is easy until it is sold. Because then the Berlin Senate and the districts interfere in free trade with brute force. For the seller this can mean that the negotiated purchase price is torpedoed by the district. The declared aim of Berlin politics: Exercise the right of preemption on as many sales as possible! Don't let it come to that: We are the top experts for building sales in the field of environmental protection.
For years, the development of the population in Berlin was underestimated, new housing construction was neglected and until the last legislative period the state still sold some municipal housing stocks. More than 200,000 rental properties were lost in this way. Cheap living space, which the rapidly growing Berlin now lacks. But instead of planning and building (much) faster, the red-red-green Senate is reacting reflexively with more and more regulation to rising rents and housing shortages.
As the owner of an apartment building in Berlin, you are directly affected by the market interventions, especially if your property is located in one of the increasingly numerous milieu protected areas, where the Senate and districts directly intervene in the ownership rights. Among other things, building projects or modernisation and division into residential property must be approved, usually accompanied by urban development contracts, which are associated with serious economic disadvantages for owners. You must be extremely cautious.
Family property is treated in the same way as objects of speculation. For the Senate it does not matter how long a tenement house in Berlin has been in family ownership, whether it was built by grandparents or great-grandparents, and whether it was invested in conservation for generations, usually without increasing rents. So if you want to sell now, there can only be one target: The best result. We look forward to your call.
Your Peter Guthmann
The market for apartment buildings in Berlin
Multi-family houses in Berlin remain the focus of international and German investors. In an international metropolis comparison, the prices per square metre for apartment buildings in Berlin are far below international levels. Buyers assume that the catch-up effects have not yet been completed. In addition to the scope for further value development, demand is driven by the persistently low interest rate level and dynamic growth in Berlin. The good prospects are increasingly leading the Berlin apartment house market to investors from abroad who accept the increasing risks of regulation if the product promises a positive development in terms of potential, demographics and migration. This makes it all the more important to be able to assess microlocations correctly. Our services go far beyond the usual one-dimensional assessments of real estate agents in Berlin.
In addition to a high level of local competence, we work with a data pool that is probably unique in Berlin and which we constantly update from our own empirically collected sources and from available and obtainable data. Our data-driven approach allows us to show buyers how property and location can evolve in the future.
Apartment building asking prices 2017 - main districts
|District||Ø EUR/m²||No. Transactions|
Less supply lead to rising prices.
Since the start of our price recordings in 2006, we have counted a total of around 25,000 offers for apartment buildings in Berlin as per the end of 2017. In relation to the 24 districts examined in our market report, there were about 14,000 offers in the 12-year investigation period.
The highest offer level was reached in 2009 with around 1900 apartment buildings on offer. Since then, the number has been decreasing steadily until its low in 2016. There was a minimal increase in 2017.
Across the 24 districts, the price increase for apartment buildings from 500 square meters of living space amounted to around 257 percent between 2006 and the end of 2017. While the average square metre price offered in 2006 was still around EUR 900/sqm, sellers asked for just under EUR 3,000/sqm in 2017. The average spread between the lowest and the highest price per square metre in 2017 was 3,100 euros, which is the long-term average.
Factor only of secondary importance for international investors
While domestic buyers are focusing on the factor (multiplier of annual net rent) under increasing pressure on the apartment house market in Berlin, international buyers are focusing on the development of square meter prices. In a global or at least European context, prices for apartment buildings in Berlin continue to be competitive.
Continuing low interest rates and banks, which are increasingly turning to international investors again, are giving an additional boost to the market for apartment buildings in Berlin. The increasing decoupling of square metre prices from the less rapidly rising rents is leading to higher capital requirements for banks. This does not affect international investors with strong equity capital, but makes it increasingly difficult for domestic investors to make major investments in Berlin.
Increasing population, lowest vacancy rates
The high population growth forecast for Berlin until at least 2030 and the fact that the vacancy rate in the German capital is practically zero is an excellent basis for low-risk, medium- and long-term commitments. The desire to park financial resources in the safe harbor of Berlin is confirmed by the shift from buy-and-sell strategies to buy-and-hold. Most international market participants expect long-term growth in Berlin and further rising square meter prices despite an ongoing regulation on the Berlin housing market.
Highest revenues and safe sales processes
In principle, we do not recommend marketing without professional support. Some very important points speak for us as experienced and most professional brokers. If you decide to commission us with the brokerage of your residential building in Berlin
- we achieve the best possible result for you. Our customers confirm that our agency negotiates purchase prices, which are well above the market average - even in the current high price phase.
- We have years of competence and an excellent reputation.
- We have a very large internal customer base with clients coming from Germany and abroad, with proven creditworthiness.
- We recognize hidden potentials and transform them into revenues
Do not settle for less. Bet on the winners!
In the first quarter of 2018, we have already successfully completed three sales. It turns out that it is wise to rely on international stockholders, foundations and small but powerful family offices. We also sell your apartment house in Berlin with the greatest success.