The various trends in real estate prices in Berlin 2019
Real estate prices in Berlin have been rising steadily and fast, but not uniformly
Housing in Berlin is still considered cheaper than this of the bighest cities in Germany such as Düsseldorf, Munich and Hamburg – but prices are rising at a dizzying pace. Even though the level of unemployment in the city is relatively high, the positive migration and the lack of new construction are forcing Berliners to spend more and more on the living within the city.
Significant increases were recorded last year in the city’s most expensive segment (a 7.1% increase to rent of € 17.13 per square meter), as well as in the cheapest segment (up 4.7% to € 6.46 per sq.m.).
As expected, the geographical location of the property in the city still plays an important role and greatly affects the asked rents. The three inner districts of Berlin, Friedrichshain-Kreuzberg, Mitte and Charlottenburg-Wilmersdorf (in this order) are at the top.
In terms of the percentage of year-on-year rent increases, Friedrichshain-Kreuzberg is at the top, while in terms of price per square meter, Mitte bypassed the other districts with prices that pass the 20 euros per square meter.
In terms of real estate purchase prices in Berlin, similar trends were recorded: in the Mitte district, the median price first passed the price of € 5,000 per square meter. Not far behind, prices in the Charlottenburg-Wilmersdorf district now stand at 4,873 euros per square meter, and even in the cheapest housing the city is now difficult to find housing cheaper than 2,000 euros per square meter.
Only in neighborhoods farther from the city center, one can still (rarely) find real estate with price that does not exceed the 2,000 eur/m2 limit. Prices in the Neukölln district, which is partly located within the city center, rose relatively slowly with an average increase of 2.6%.
Only in the most distant districts of the center of Berlin – Marzahn-Hellersdorf and Spandau, located in the most eastern and western parts of Berlin respectively – there was a drop in prices, albeit quite small (-0.8% in 2019 compared to 2018).