Property Market Report Berlin 2020

Real estate prices Berlin 2020

Average property prices in 2019

Source: LBS Preisspiegel 2019, ntv, Immowelt

New building Berlin 2020

New residential construction is on the rise in Berlin, and according to the ZIA’s spring report, there is even a construction backlog. In other words, more building permits are being issued than properties can be completed. Therefore, in 2020, supply could even grow faster than demand, a novelty in Berlin. In 2019, there were 1,181 sales of undeveloped land in Berlin, down 15% on the previous year. 667 sales were for individual residential construction (-10%), 152 sales for multi-storey residential construction (-18%), 57 commercial properties (-42%) were sold in 2019 (Gutachterausschuss für Grundstückswerte Berlin). Particularly high levels of construction are expected in 2020 in Berlin-Mitte and Charlottenburg, as well as in Pankow. BUWOG is building 231 condominiums in Heidestrasse, 43 new condominiums are being built at Savignyplatz as a result of a core redevelopment, and in Pankow the “Immergrün Berlin-Pankow” project with 132 condominiums is planned, which has wooden elements and greenery in its concept and thus follows the green-urban trend.

Commercial real estate Berlin 2020

Source: C. Schlippes / bm infografik

In terms of offered rents in Berlin, Charlottenburg-Wilmersdorf is in first place, followed by Berlin-Mitte and Friedrichshain-Kreuzberg. With 50%, demand for real estate in Mitte, Prenzlauer Berg and Kreuzberg has risen the most. Mitte and the so-called “Xhain” are also the districts in Berlin in which the apartments far exceed the specified rents in the rent table (rent cap). You can find the rent table here. Marzahn-Hellersdorf, on the other hand, offers those with the lowest prices per square meter and the smallest difference to the figures in the rent table. An upcoming district is also Pankow. The Florakiez in particular is developing into the new Prenzlauer Berg and is expected to experience a significant increase when Tegel Airport is closed and BER opens and there is no more aircraft noise (Berliner Morgenpost).

Political changes in 2020 – effects on the Berlin real estate market

The real estate year 2020 will be largely influenced by the political situation. On the one hand, the political situation in Germany and the political situation abroad, which in England is determined by the brexite or in America by the trade war, will ensure high growth and interest, especially from foreign investors. On the other hand, there are political measures such as milieu conservation areas, of which there are now around 60 in Berlin. Find out more about Milieu Protection Areas in Berlin here. In addition, if the rent cap is legally effective, rents will be capped in 2020. You can find out about exceptions here. This ensures lower price increases in Berlin and, above all, raises questions among foreign investors. However, Berlin is loved and appreciated above all for its attitude to life and its economy and will therefore remain on the radar screen of investors. A further point is the climate package of the Federal Government with its CO2 tax, which will raise the costs for heating oil and gasoline. Owners and tenants should therefore be relieved by decreasing electricity costs, a higher housing allowance and a limited apportionment of the CO2 price. In addition, the federal government wants to promote climate-friendly construction and renovation. From 2026, pure oil heating systems will no longer be allowed to be installed.

We would be happy to inform you about the political framework conditions in Berlin!

Economic growth 2020 in Berlin

Berlin’s economy remains diverse and promising. For the 6th year in a row, the capital has been above the national average in terms of economic growth. The economy is growing and wages are rising. This is partly due to the start-up quantity and quality for which Berlin is known. In addition, Berlin has the highest growth rate in jobs. New places will also be created by Siemensstadt 2.0 and the new Tesla location in Brandenburg. In Grünheide, 500,000 electric vehicles per year are to be produced in the future. In 2020, Berlin will place particular emphasis on an innovative and ecological industry.

Berlin real estate trends 2020

In the capital, the coworking trend is gaining momentum. The concept refers to the shared use of a workplace and is lived out in cities like New York or London. In addition, the trend towards furnished living in Berlin is becoming more and more apparent. This again underlines the internationality of the metropolis of Berlin, which attracts people from all over the world. And as it is: many come and stay forever.

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