Real estate in Germany – Rent differences in center and outskirts

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Gaps in rents in central Berlin and the city’s margins

Berlin’s historic center is the most expensive, but other neighborhoods continue to come close in price

Officially Berlin is divided into 12 major neighborhoods, but the real estate reality is much more complex. We have collected data on the demand for rents in the 190 postal codes of Berlin according to which the current situation in the city can be better understood.

At first glance, the picture is clear: 9 of the ten most expensive rental areas are located in the historic center of Berlin, Mitte. However, much of the new construction in the city is being built in other neighborhoods (for example, just north of the main station – in the Wedding and Moabit neighborhoods), while there are many old buildings in Mitte where people with very low purchasing power live. New construction is one of the main drivers of rise in rents: in areas with new construction, until 2015 asking rent was under 10 euros per square meter, and by 2018 it rose to an unprecedented rate of 15 euros per square meter and above.

The only area in the top ten in terms of rental levels that is outside of Mitte is the neighborhood around Lugwigkirchplatz in Wilmersdorf (postcode 10719), south of the famous Ku’damm Avenue. Other neighborhoods with a high rent of € 13-14 per square meter are the popular Kreuzberg-Friedrichshain neighborhood, Prenzlauer Berg and the Grunewald villas area in the west of the city.

Not far behind are the Charlottenburg-Wilmersdorf, north of Neukölln and Schöneberg neighborhoods. 42 additional zip codes make up the largest share of the city areas in terms of rent, where it stands at € 9.00-9.99 per square meter. The unifying feature of all these areas is the relatively big distance from the city center. There are only six zip codes in the lowest category of asking rents today with a rental price below € 7 per square meter.

Purchasing power is not uniform in all areas considered relatively expensive in terms of rent. For example, you will find households with high purchasing power in Mitte, Charlottenburg-Wilmersdorf and in Prenzlauer Berg – meaning people living in these areas can afford to pay the high rent and still have a good balance for extra expenses. Households with lower purchasing power but high rents are mainly located in the Kreuzberg-Friedrichshain and Neukölln neighbourhood.

Posted by Tanya Yujelevski  |  0 Comment  |  in Berlin, Development and growth, Uncategorized @en

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