Berlin Property Market: 40 % more new buildings in 2012

Investors are currently planning and building significantly more new buildings in Berlin. The Senate Bureau of Statistics published in a recent report that this year the authorities have approved 40 percent more building permissions for new homes than in the same period last year.

von Peter Guthmann Veröffentlicht am:

Back to West-Berlin

With the reunification new buildings were mostly built in the eastern districts of the city. But in recent times investors are again looking more and more to the western part of Berlin that is dominated by residential quarters. The traditional areas around Kurfürstendamm with its nice, populated and busy side streets is attracting the interest of investors. Charlottenburg offers a lot of very nice and active city squares like Savigny Platz , Fasanenplatz , Ludwigkirchplatz or Meyerinckplatz.

Representative buildings, excellent department stores, luxury shops and some of the best restaurants in Berlin form the favorite neighborhood for a bourgeois clientele.

Also Potsdamer Straße is experiencing after years of decadence a renaissance to one of Berlins most important hotspots for international art galleries, design and fashion companies. In 2009 investors began to recognize that planning and building new residential condos in Berlins western districts is a promising business. Since then many projects have been implemented and successfully marketed, some of them by your Berlin Real Estate Agent, Guthmann Estate.

The consulting and market research company BulgwienGesa has recently analyzed 34 new projects in Berlin with around 1,350 residential units. The study that focused on Berlin Real Estate in the western districts of the German Capital. The market shows that apartments in these projects are currently offered for an average purchase price of approximately 4,300 euros/sqm. In Charlottenburg builders ask for the highest prices with an average of 4,730 € / sqm. In Kreuzberg, according to our research, Berlin properties in new condos are sold for 3,920 euros/sqm. Compared to last year , purchase prices have risen by an average of 10.3 percent. The highest increases were in Charlottenburg ( +15.3 %) and Wilmersdorf ( +9.7 %). Land prices mixed The development of prices for plots of land is inconsistent. The company TLG Immobilien states in his report "Real estate markets of Berlin and East Germany 2013" that plot prices in the eastern part of the city increase in both, simple and medium quality locations. In the western part of Berlin a price increase happens only in good and very good locations, according to the company. Land in good to very good locations is currently sold for 1,000 euros per square meter. Increasing demand

Despite the fact that the demand for new housing is higher than the supply, in 2012  only 5,400 new units were completed. Another 9,900 were approved by the authorities. On the demand side there are 12,000 buyers waiting for a perfect home or investment. Experts see in particular an increasing demand for small and cheap apartments.

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