Germany’s capital Berlin is constantly evolving to become one of the most important metropolises in the world. This city attracts people from all over the world who currently say it could not be more popular. Berlin is in good company with the world metropolises such as New York, Paris, Tokyo and London. It is not only the cultural diversity that makes Berlin so attractive. Berlin has something that other metropolises do not have: affordable prices per square metre.
However, rent and purchase prices are rising, so is it justified to panic that in future there will be no affordable housing? The Immobilienverband Deutschland (IVD) – a federation of real estate agents, custodians and appraisers – has tackled this exact question and compared the price per square metre in different German cities. A key finding was that the price per square metre in Berlin clearly lies “below the equivalent levels in other major cities in Germany”, according to IVD Vice President Jürgen Michael Schick on tagesspiegel.de. This meant a sigh of relief for potential renters and buyers.
A slowdown in the increase of rent prices is noticeable. According to Schick, the rise in rent prices is currently only half as much as in the previous year. While last year it was still 8 %, now it is only 4 %. Although particularly in the district of Charlottenburg the average net rent was relatively high at up to 10.50 euros net, it was made clear that areas with very high net rent only appear in selective cases.
Admittedly, it cannot be denied that an increase in the price per square metre for apartment units is noticeable. The price per square metre increased in standard residential areas by 10.7% per square metre (from 1,400 to 1,550 euros). In popular areas, the core purchase price increased by 10.8% (from 1,850 to 2,050 euros). Charlottenburg also tops the rankings with an average of 3,100 euros per square metre and Berlin-Mitte with an average of 2,400 euros per square metre. However, Neukölln, Marzahn-Hellersdorf and Spandau are considerably more favourable at 1,550 to 1,600 euros per square metre. It can therefore be seen that the price per square metre in Berlin on average continues to be lower than in other German cities such as Hamburg, Munich or Stuttgart.
Are you thinking about moving to the German capital? Or are you interested in making a capital investment in Berlin? Then contact Engel & Völkers Berlin. Our friendly, experienced advisors will be happy to provide you with information on the best residential areas and answer any questions you may have.