Berlin‘s suburbs in development, rental growth

Many choose to live outside of Berlin and commute every day for work, causing increase in rents

About a million people live in the metropolitan area of Berlin. The level of prices and rents in these areas is determined by their geographical location, size and overall attractiveness. In the metropolitan area of ​​Berlin there are about 55 towns, 35 of which are more distant. Moreover, 19 are closer to the capital and Potsdam is the largest city outside of Berlin. For comparison, in the last three quarters of 2018, the median rent in Potsdam was € 9.86 per square meter. The number being just € 0.48 lower for a comparable property in Berlin.

In about twelve other picturesque places surrounding Berlin, the rent is € 9.00-9.99 per square meter. These are towns such as Birkenwerder, Stahnsdorf and Teltow with a green and quiet environment and a pleasant scenery. A short gap with median rent of € 8.00-8.50 per square meter is present in Oranienburg. This is also present in its peaceful surroundings.

Places with rent of € 7.00-7.99 per square meter are usually smaller towns with a population of slightly more than 20,000 people, which are farther away from Berlin. This category includes places like Ludwigsfelde, Hennigsdorf and Strausberg. While they are all well connected to Berlin by train, their commute from the city center will take between half an hour and an hour.

In terms of price increases, Berlin’s suburbs have been following trends in the big city: in the past five years rents have risen in double-digit numbers as well as real estate prices in these areas. This is especially true of private homes and duplexes: purchase prices for these properties have crossed the border of € 4,000 per square meter.

With the rise in demand for housing in Berlin, so does the towns surrounding Berlin. And the more difficult it is to find an apartment outside of Berlin’s center, the higher is the out-of-town migration. This causes rents increases, increases in value and growth in new construction in the area.