Berlin Property Prices

Real Estate Market Berlin

Berlin is among the few global cities that are always in high demand. It serves as a respected university location, an essential industrial and economic center, and a colorful cultural hub. A look at the Berlin property prices shows the same also applies to its property market. 

The prices of residential and housing properties have risen steadily for the past few years. Alongside Stuttgart, Hamburg, and Munich, the Berlin property market has developed a reputation for being among the most expensive in Germany. 

In spite of the prevailing tight market conditions, families and investors contemplating purchasing property in the capital still have plenty of opportunities to do so. The following report takes a closer look at prevailing Berlin property prices for different districts.

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Properties for Sale

Berlin


Capital investment in Berlin-Treptow

Vermietete Wohnung kaufen Berlin als Kapitalanlage


Townhouse in Berlin-Lichterfelde



Luxury Apartment in Berlin-Wilmersdorf




Berlin Property Prices Report

Ongoing Developments Related to the Berlin Property Market 

 

Steady population growth and persistent year-in, year-out low-interest rates are some of the factors that have made Berlin a much sought-after property locale. Today, the capital has over 3.7 residents. This figure roughly translates to a population growth of over 6.6% since 2013. 

While there is a reduction in the supply of residential space in some of the locations most sought after, Berlin still has a lot of potential for new developments. Its vacancy rate standing at 0.9% is low by normal standards indicating the high demand for residential space in Berlin. 

Compared to other major cities in Germany, this figure still appears high. For instance, the vacancy rate of two of the other larger cities currently stands at Frankfurt am Main (0.4%) and Hamburg (0.5%). 

 How Much Do Condominiums Cost in Berlin? 

 

There has been a surge in Berlin property prices for investors looking to purchase condominiums. In 2019, investors had to part with an average of €4,569 for each square meter for any property they wanted to buy. 

If you compare this to 2 years ago, you will note the prices in the condominiums sectors rose by a whopping 11.17%. New building projects, however, noticed reduced growth, even though there was a slight increase in the purchase prices. 

Purchasing a single square meter in a new building for living purposes costs around €6,329 last year. This represented an increase of about 6.26% when compared to the same period in 2018. 

Single-Family Homes Property Prices in Berlin 

 

The Berlin property market is highly versatile, a fact that has helped make it attractive to families looking for a place to settle down. For you to verify this, you need to check the property prices for single-family homes which continue to remain at very high levels. 

In 2019, the average single-family home in Berlin had a listing price of €813,469. A look at a similar period in 2018 shows a rise in property prices by up to 9.4%. 

Going Cost for Apartment Buildings 

 

By the time the first half of 2019 was coming to a close, an apartment building, or a residential and commercial building was being listed for €5,594,200 on average. This represents an increase of around 29.1% compared to the first half of 2018. 

In terms of meters, a single square meter last year was selling for an average of €3,391 in the capital. For this year, anyone planning to invest in apartment buildings can expect to encounter a slight reduction in property prices.

This is because of the rent cap put in place by the Berlin Senate which sought to place a hold/free on all the rents. 

 

 

 

 

Prices for Each Individual District in Berlin 

 

The property market in Berlin is mainly made up of districts. As such, the prices are bound to vary greatly depending on the exact location. Price variation based on location is something that applies to all properties, regardless of whether they are condos or singles to two-family homes. 

As is the case with any other property market, the districts located closest to the Berlin city center happen to be among the most sought-after. However, this shouldn’t be construed to mean the other districts don’t have a high demand among investors and residential buyers. 



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Districts in Very Good Locations 

 

Districts perceived to be in the best locations include the districts of Lichterfelde, Mitte, Zehlendorf, Charlottenburg, Grunewald, Schöneberg, and Wilmersdorf. The same also applies to parts of Kladow, Westend, Hermsdorf, Prenzlauer, Frohnau, and Prenzlauer Berg. 

When looking at the Berlin property prices, you will find that the single and 2-family houses in these locations attract some of the highest purchase prices. Their prices typically range between €650,000 to €7 million. 

For the condominiums, their prices for each square meter ranges between €5,200 and €17,000.

Secondary Location Districts

 

Districts falling in this category have the lowest asking price in the whole of Berlin. Where the Berlin property market is concerned, districts in these locations include all those located on the eastern part.

This means Reinickendorf, Marzahn, Hohenschönhausen, Marzahn, and large sections of Tempelhof and Rudow are all secondary location districts. On average, single and 2-family homes falling in the secondary location districts go for between €220,000 and €620,000. 

For the condos in these Berlin districts, the average price for each square meter is between €1,700 and €4,600. 

Districts in Good Locations 

 

Moving on to the next category to districts in good locations, these are districts having proximity to the city center in the capital. Generally, this refers to districts such as Kreuzberg and certain parts of Prenzlauer Berg. The two districts also have a very young population. 

While districts like Friedrichshagen, Spandau, Waidmannslust, and Steglitz may fall further afield, they are also classified among the districts in good locations. On average, the price for single to 2-family homes range between €560,000 and €3.7 million. 

In the case of condominiums, the average price for each square meter is between €4,000 and €8,700.

Mid-Range Location Districts 

 

Districts falling in this third category include Wedding, Neukolln, Pankow, Weissensee, Lichtenberg, and certain parts of Tempelhof. Considered the mid-range section, purchase prices for single and 2-family homes will normally range from €340,000 to €1.03 million. 

If you would rather purchase a condominium as opposed to a single-family home or 2-family homes, you can expect to pay between €2,500 to €6,800 per square meter in these areas. 

Reasons to Buy Property in Berlin 

 

While 2020 may have had a sluggish start, thanks in part to the global COVID-19 pandemic, Berlin is and will continue to remain a top property investment destination. This is because the city has a few things working for it, which may not apply to other German cities:

 

i. The German economy is among the strongest and most stable economies in the European Union. 

ii. Compared to other cities in Europe and the surrounding continents, Berlin has a higher yield. 

iii. If you are an international investor, your property investment is adequately protected by the strong legal system in Germany.

iv. Today, more and more residents in the capital are turning to property acquisition, compared to formative years when many opted to rent. 

 

Having looked at some of the things working for Berlin, and which have helped make it an ideal property investment decision, the following are reasons why you should buy Berlin property.

 

 

 

 

 

 1. Berlin Is a Leading Global Address

 

As was mentioned at the beginning of this article, Berlin is a unique city, in Germany, Europe, and across the globe. Its cosmopolitan status aside, the city is by all means filled with all kinds of superlatives. 

Simply put, Berlin is a winner whether you look at it from a cultural, commercial, or historical perspective. This is an address where any person in the EU would like to purchase a property.

 

2. Its Property Market Is a ‘No-Brainer’

 

Realtors and other industry experts have often referred to the property market in Berlin as a ‘no-brainer’, and with valid reasons. A look at the fundamentals underlying the industry shows these assertions are right and will continue to be for a long time, even when you consider the volatile nature of the market.

Purchasing property in Berlin is, therefore, a good investment decision. Additionally, the property market is also affordable and durable, by both German and European comparisons. 

 

3. The Economy in Berlin Continues to Grow

 

The capital continues to grow at a very high rate. Its growth rate is by far the highest of all German states. Having recently acquired a tech hub status, the job rate growth has also been steadily improving in the last few years. 

Statistics indicate Berlin currently holds the mantle for the fastest-growing ‘startup ecosystems anywhere in the globe. Compared to other European capitals, Berlin also continues to enjoy the most venture capital investment in a given year.

Berlin residents by comparison have access to low costs of livings compared to other traditional tech hubs such as London and Silicon Valley. London, for instance, has 40% higher living costs compared to Berlin. 

The relatively low cost of living has proved beneficial as it has provided a conducive environment for early-stage startups. Add this to the fact that commercial space in the capital is still available for lease or rent at reasonable prices per square meter. 

 

4. Berlin Residents Want to Own as Opposed to Renting Apartments 

 

Berlin is among the few cities in the world where most of its residents have been able to buy apartments, as opposed to leasing them.

The last couple of years have seen a 50% rise in the number of people who have purchased apartments by converting them from rental properties. Such conversions have occurred in high numbers in central Berlin districts of Prenzlauer Berg, Mitte, and Kreuzberg.

In the past, some of these districts were considered as exceptions, but have today come to rule the properties market. Another important factor to note is that the property market in Berlin is slowly transforming. 

It’s a transformation that has caused the market to shift from being a renter’s market and on to a buyer’s one. Look around and you will notice there are more apartments for sale compared to the ones available for rent. 

 

Berlin Property Market Forecast: Are the Prices Expected to Continue Rising? 

 

Presently, Bergen Real Estate doesn’t foresee a drop in property purchase prices in the capital city anytime soon. Rather than experiencing a drop, our analysts predict that the trend noted in the past year will continue for the foreseeable future. 

Berlin is a city that is continually growing, and this means it’s still trying to shape its metropolitan appeal. As such, international interest will continue to remain unbroken even as new hubs continue to emerge throughout the capital. 

For now, demand continues to remain slightly higher than the available residential space. The reality is that not many building permits get to receive the official go-ahead on any given year. There’s also the policy issue, particularly the policy failures experienced in recent years.

All these are issues that will need to be addressed if additional space is to be created to assist in facilitating the emergence of new projects and investment opportunities. 

 

1. Berlin Is a Leading Global Address

 

As was mentioned at the beginning of this article, Berlin is a unique city, in Germany, Europe, and across the globe. Its cosmopolitan status aside, the city is by all means filled with all kinds of superlatives. 

Simply put, Berlin is a winner whether you look at it from a cultural, commercial, or historical perspective. This is an address where any person in the EU would like to purchase a property.

 

2. Its Property Market Is a ‘No-Brainer’

 

Realtors and other industry experts have often referred to the property market in Berlin as a ‘no-brainer’, and with valid reasons. A look at the fundamentals underlying the industry shows these assertions are right and will continue to be for a long time, even when you consider the volatile nature of the market.

Purchasing property in Berlin is, therefore, a good investment decision. Additionally, the property market is also affordable and durable, by both German and European comparisons. 

 

3. The Economy in Berlin Continues to Grow

 

The capital continues to grow at a very high rate. Its growth rate is by far the highest of all German states. Having recently acquired a tech hub status, the job rate growth has also been steadily improving in the last few years. 

Statistics indicate Berlin currently holds the mantle for the fastest-growing ‘startup ecosystems anywhere in the globe. Compared to other European capitals, Berlin also continues to enjoy the most venture capital investment in a given year.

Berlin residents by comparison have access to low costs of livings compared to other traditional tech hubs such as London and Silicon Valley. London, for instance, has 40% higher living costs compared to Berlin. 

The relatively low cost of living has proved beneficial as it has provided a conducive environment for early-stage startups. Add this to the fact that commercial space in the capital is still available for lease or rent at reasonable prices per square meter. 

 

4. Berlin Residents Want to Own as Opposed to Renting Apartments 

 

Berlin is among the few cities in the world where most of its residents have been able to buy apartments, as opposed to leasing them.

The last couple of years have seen a 50% rise in the number of people who have purchased apartments by converting them from rental properties. Such conversions have occurred in high numbers in central Berlin districts of Prenzlauer Berg, Mitte, and Kreuzberg.

In the past, some of these districts were considered as exceptions, but have today come to rule the properties market. Another important factor to note is that the property market in Berlin is slowly transforming. 

It’s a transformation that has caused the market to shift from being a renter’s market and on to a buyer’s one. Look around and you will notice there are more apartments for sale compared to the ones available for rent. 

 

Berlin Property Market Forecast: Are the Prices Expected to Continue Rising? 

 

Presently, Bergen Real Estate doesn’t foresee a drop in property purchase prices in the capital city anytime soon. Rather than experiencing a drop, our analysts predict that the trend noted in the past year will continue for the foreseeable future. 

Berlin is a city that is continually growing, and this means it’s still trying to shape its metropolitan appeal. As such, international interest will continue to remain unbroken even as new hubs continue to emerge throughout the capital. 

For now, demand continues to remain slightly higher than the available residential space. The reality is that not many building permits get to receive the official go-ahead on any given year. There’s also the policy issue, particularly the policy failures experienced in recent years.

All these are issues that will need to be addressed if additional space is to be created to assist in facilitating the emergence of new projects and investment opportunities. 


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