The German capital city is and continues to be a popular attraction for national and international visitors. At the same time, interest in properties in Berlin is increasing. Apartments are in particular demand:
In 2013, Berlin recorded the largest sales increase in the market for detached and semi-detached properties among the top 10 German cities. Thus, according to a panel of experts, increasing the transaction volume compared to 2012 by 16.4 per cent to 6.159bn. Thereby hitting the billion mark for the first time. Furthermore, in the market for apartments, Berlin knocked Munich off the top spot with sales amounting to 4.332bn euros. This is the finding of the “Residential Real Estate Market Report for Germany 2014/2015” published by Engel & Völkers.
“On the one hand, this sales increase can be explained by an increased number of apartments and houses sold. On the other hand, buyers paid more on average for their properties in 2013 than in 2012,” says Sebastian Fischer, Managing Partner of Engel & Völkers in Berlin-Mitte. In the first half of 2014 like in the year before, Engel & Völkers observed an increase in the bottom prices in some locations and markets. The price increase is not limited solely to luxury real estate. Increases are also evident in the lower and middle brackets. Prestigious properties such as the Yoo in the Mitte district of Berlin however continue to be sought after and go for up to 15,000 euros per square metre at the top end. In the first half of 2014, villas with a sea view in prime locations such as Zehlendorf set the market price at up to 4.5m euros.
Equally popular: Apartments in the city centre and villas in the countryside
Prime locations remain unchanged in the historical centre of Berlin around the Gendarmenmarket, the Hackeschen market and the Prachtboulevard on Unter den Linden. Sought after properties include highly renovated apartments in old buildings and luxurious newly built penthouses with expensive furnishings and generous floor plans. Equally in high demand are the districts of Prenzlauer Berg, Schöneberg, Kreuzberg, Charlottenburg and Wilmersdorf. Even quiet locations in the countryside such as Spandau or Frohnau as well as the waterside locations in Köpenick and the Friedrichshagen villa area are experiencing higher popularity. “Families value the high standard of living as well as the good infrastructure and connections here”, says Oliver Giersch, Managing Partner of Engel & Völkers in Berlin-Köpenick.
Demand from foreign buyers remains high
In light of the continuous population growth, the high demand and the continuingly low interest levels, Engel & Völkers predicts that the prices in all locations and markets for apartments will continue to rise in 2015. In the market for detached and semi-detached properties as well as in the rental sector, some locations are exhibiting an increasing price curve. “Buying prices and renting prices aren’t moving as quickly as in past years anymore, we do however predict moderate growth going forward”, according to Sebastian Fischer. Especially for international buyers, Berlin will remain a popular investment location since the rental and buying prices appear moderate in comparison with other European capital cities such as Paris or London.