This costliness can be explained by the increase in the prices of raw materials – cement, plaster, insulation materials, etc. – prices rose in all cases by no less than 3.7% per year.

In addition, in recent years, many regulations in the area of construction and safety have emerged. Their amount has become four-fold since 1990. All these factors, in addition to the high demand for housing, cause inevitable price increases.

Berlin’s Senate estimates that by 2030 there will be a shortage of about 194,000 housing units in the city. Whereas the CDU, which is not a part of the local Berlin government, is now afraid. The reason is that in reality the deficit will be closer to a quarter million units.

The party is also demanding that the local government approve more construction on agricultural land. Distribute more permits for the construction of taller buildings, and put back on the table the construction at the former Tempelhof airport. After Berliners cast a vote against building in the area in the 2014 referendum.

Combination of all the above mentioned factors leads most experts and investors to believe that prices for residential real estate in Berlin are not expected to fall, or, for that matter, even to balance in the foreseeable future.