Thursday, 28 January 2016
The gap between supply and demand in the Berlin Property Market keeps growing. According to the Housing Market Report Berlin 2016 published by Berlin Hyp and CBRE the efforts made by the government introducing new rent caps had little effect on the rent development.
The report shows that on average the rents offered rose by 5.1% just below 9.00 Euro/m² (2014: +6.6%). The increase in Mitte was ca. 7.0% while Friedrischshain-Kreuzberg and Reinickendorf rose by 5.9%. The lowest increase was in Lichtenberg at 0.9%.
As reasons for the strong increase two main factors are stated:
1. 1.Steady increase of the Berlin population through steady influx based on the apparent attraction Berlin has.
2. The number of new projects especially in the central districts. The rent caps don’t apply to new apartments coming into the market.
Condo prices rose by 10.1 % on average with the biggest increase in Steglitz-Zehlendorf (+16.3%).
The Housing Market Report Berlin 2016 is available for download on our website www.berlin-portfolio.com.