Real estate prices in the german capital are the lowest among all major cities in Europe and Germany (2 times less than Munich, 3 times less than Paris and 4-5 times less than London). The catch-up of property prices in Berlin compared to other European capitals continues with double-digit price growth (10.8% in 2014, 10.1% in 2015 and 9,6% in 2016) sustained by tremendous residential housing demand.
Moreover, the volume of real estate investments in Berlin city was multiplied by 3 since 2014 to reach € 10 billion (against € 3 billion in 2014), reflecting a growing demand from investors for properties in Berlin.
Property ownership rate in Berlin is particularly low with less than 20% of owners in the city, which leaves a significant margin of development of the real estate market in the long term. The high occupancy rate (ca. 98%) and population growth (ca.50 000 people per year), would support housing demand for the next years and are forward development factors for Berlin property prices.
Real estate prices evolution in Berlin
The strong catch up trend of property prices in Berlin and the prospects for important price appreciation are prime factors to invest in Berlin real estate market.
The median apartment price in Berlin is around 3290€ per m2 (355 $ per square foot) by end 2016.
This general average combines vacant apartment prices in Berlin with tenanted investment properties, that are sold at a discount of 20% to 30% compared to vacant condominiums.
This due to the very high demand on vacant homes and the important lack of property offer on the market.
The residential property prices in the city central districts are currently around these levels:
Berlin property prices development
|Districts and areas||Berlin property prices growth % in 2016|
|Charlottenburg - Wilmersdorf||+9,4|
|Friedrichshain - Kreuzberg||+8,9|
|Tempelhof - Schöneberg||+21,0|
|Treptow - Köpenick||+5,0|
Source: CBRE Wohnungsmarktreport
Apartment prices in Berlin for already tenanted properties in Berlin could represent a discount of up to 30% compared to the price for similar vacant properties on the market. This is due in particular to the shortage of vacant apartments and the high demand on residential housing.
For buyers looking for a pure rental investment or buy-to-let in Berlin with significant potential for capital gain, this could be a good option to buy at a very good price per m2 in Berlin.
*This map shows the general level of Berlin property prices. Please, note that within a single area, prices can vary significantly based on criteria such as the status (vacant or tenanted), the yield, the year of construction and the micro location for which Berliners gives a high importance.
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