The Guide to Berlin’s neighborhoods
Naturally, the location of the property is one of the criteria that have an influence on the final price. Location means a certain street, a neighborhood, proximity to institutions, to public transportation or the city center. Depending on the location the price will vary and its future added value will be predictable, accordingly. Also in Berlin, as anywhere in the world, the location is crucial to the final price of the property and naturally affects the investor’s annual yield. However, the criteria for location in Berlin is different from the Israeli market. Berlin is an extremely large city with historical and cultural characteristics; it has a diverse population among them immigrants. Precisely for this reason, the difference in price for two apartments located in the same street may be hundreds of thousands euros apart. Not to mention the city areas themselves, where price differences are very significant. Before you start looking for investment property in Berlin, it is important to understand the nature of the city and get familiar with its neighborhoods. In general, Berlin consists of large neighborhoods like Berlin Mitte, Charlottenburg, Pankau and Tempelhof, which again split up in smaller neighborhoods and districts. Currently there are about 10,000 properties in Berlin on the market: 59% are private properties and 49% are for rent. The city’s population consists of 5% couples without children, 53% singles and 21% families with children. The most expensive apartments, apart from apartments in new luxury projects, can be found in buildings built between 1940 to 1960. In 2010/11 the average price per sqm in Berlin was EUR 1,400. EUR 1200.- in less popular areas and EUR 1600.- in great demand areas. (according to the German association of real estate brokers). The current prices for rent are about EUR 6.9 per sqm, which is 6% higher compared to last year.