HousingMarketReport with HousingCostAtlas 2012
MASTHEAD Publisher: GSW Immobilien AG Charlottenstraße 4, 10969 Berlin Tel. +49 (0)30. 25 34 -13 32 Fax +49 (0)30. 25 34 -19 34
Market data: Dr. Henrik Baumunk, Kristina Kröger, Michael Schlatterer MRICS Residential Valuation, CBRE GmbH
Editorial department: Roland Stimpel Graphics/Layout: Storkan Informationsdesign
Project management: Katja Binnyus, RUECKERCONSULT GmbH
Responsible according to German press law: Thomas Rücker, Head of Corporate Communications, GSW Immobilien AG, thomas.ruecker@gsw.de www.gsw.de (also for download of HousingMarketReport) The HousingMarketReport 2012 has been printed on FSC-certified paper. Photo cover: Tristan Deschamps/AGE/F1online
DISCLAIMER 2012 GSW/CBRE Information herein has been obtained from sources which are accessible to the public, (or, in certain cases, in exchange for a fee) and believed reliable. While we do not doubt its accuracy, we have not verified each piece of information and cannot make any guarantees about it, barring willful intent and gross negligence. It is your responsibility to independently confirm its accuracy and completeness. The information contained in this market report may not be used, reproduced or published without prior written permission of GSW and CBRE. HousingMarketReport_Berlin_March 2012
A market on the rise
B
GSW’s Board: Jörg Schwagenscheidt, Thomas Zinnöcker, Andreas Segal (left to right)
erlin is Europe’s most exciting housing market. On the one hand, the traces of its past are still clear to see: rents and purchase prices in one of the continent’s most important cities are often still low. On the other hand, the Berlin market has started to move towards the future, with substantial growth in the level of interest in and willingness to pay for residential real estate among tenants as well as buyers of individual apartments, entire buildings and larger complexes. Berlin is rearranging itself: potential residents are primarily on the lookout for generously-sized, well-appointed apartments in desirable inner-city locations. This segment has seen the strongest rental and price growth, with supply falling. Most of the areas outside the city center and on the edge of town are currently less interesting for demanding end customers. By contrast, larger investors are also looking at areas and sub-markets that can still offer affordable entry opportunities, including developments and neighborhoods in the outer districts of the city, as well as more central apartment buildings that cannot boast luxury or any particular flair, but that are situated in increasingly popular locations.
This positive mood means that it is necessary to take a close look in order to act successfully on the market. Apartment buildings in different parts of the city and with different quality levels must be assessed individually. The Housing Market Report 2012 prepared by GSW and CBRE looks at the detailed structures of the city on the basis of an extremely comprehensive yet differentiated data pool. To enable a precise analysis of the rental property market, the asking prices and property sizes for more than 100,000 advertised properties were recorded in 2011 and allocated to the city’s 190 postcode areas. This gives an exact picture of the supply situation and the development of local housing costs for each of these areas. The rents for the cheapest and most expensive apartments in each area are also shown. This allows the most luxurious and particularly simple market segments to be precisely located. We would like to expressly thank CBRE, our partner in preparing this Housing Market Report, for the complex work involved in collecting and processing the data. Important conclusions can be drawn even from a straightforward analysis of the supply situation in the 190 postcode areas. However, the information value of the data is far more extensive than this alone. When combined with the figures for the previous years, for example, it shows the recent rental trend at a micro-level. How will this continue in the near future? Combining the rental data with the figures on household purchasing power in the respective postcode area, which are calculated by Michael Bauer Research GmbH, can help to answer this question. The Housing Market Report illustrates the relationship between asking rents and household purchasing power – the housing cost ratio – in the form of maps and tables for all 190 areas. A particularly high housing cost ratio suggests that a neighborhood is particularly attractive and in the process of change, or that existing residents are increasingly willing to pay for properties locally. By contrast, a low housing cost ratio suggests a quiet niche – and, in some cases, hidden potential. The Housing Market Report shows such hot spots and niches, as well as the broad mass of properties between these extremes, like a magnifying glass held over a map of the city. We invite you to investigate the neighborhoods and market segments that are particularly interesting for you. This report will help you to get to know the dynamics of Berlin and the wide range of opportunities offered by the individual areas and their special characteristics.
Thomas Zinnöcker Chairman of the Board GSW Immobilien AG
Jörg Schwagenscheidt Member of the Board (COO) GSW Immobilien AG
Andreas Segal Member of the Board (CFO) GSW Immobilien AG
1_HousingMarketReport_Berlin_March 2012
For a long time, Berliners spent far less on housing than residents of other cities. But their willingness to pay is increasing
3
More residents, more jobs, higher income levels: Berlin’s growth is benefiting the residential property market
4
The rental gap between the city center and the outskirts is widening – as is that between premium and simpler lifestyles
6
Individual apartment buyers strive for the city center. Larger scale investors are betting on the potential of areas in the outskirts
8
After a long lull, more apartments are now being built in Berlin – mostly upper market segment properties in the city center
10
What economic, population and housing market data reveal about the potential of Berlin’s 12 city districts
12
An analysis of apartments for rent in Berlin’s postcode areas reveals characteristics of the city districts and their development
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190 neighborhoods in 12 districts
Charlottenburg-Wilmersdorf Friedrichshain-Kreuzberg Lichtenberg Marzahn-Hellersdorf Mitte Neukölln Pankow Reinickendorf Spandau Steglitz-Zehlendorf Tempelhof-Schöneberg Treptow-Köpenick
16 18 20 22 24 26 28 30 32 34 36 38
Rent levels
An overview of the city’s hotspots, established and trendy areas, district centers, green areas and affordable outskirts
40
Peer group comparison
Location
Residential rents
Investments and property
New construction
Scoring
HousingCostAtlas: Berlin in the spotlight
Exceptional residential areas
2_HousingMarketReport_Berlin_March 2012
Rent prices for all of Berlin
Back cover
The highest and lowest rents, vacancy levels, apartment sizes and amount of local purchasing power spent on rent
Back cover
Peer group comparison: Low rents in Berlin – but the market is becoming more metropolitan
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erlin is something of a special case among German cities and international metropolises in terms of its housing market and economic structure. In almost all other countries, such centers are home to a concentration of major companies, income and domestic product are well above the national average, and property prices and rents are the highest in the country. By contrast, Berlin’s income, purchasing power, property prices and rents are significantly lower than the next-largest German cities of Hamburg, Munich, Cologne and Frankfurt. However, the rental gap is even greater than the income gap, meaning that the inhabitants of Berlin have a low housing cost ratio – i.e. they spend a lower proportion of their purchasing power on rent than the residents of comparable cities. Berlin’s affordable rental level is rooted in historical events: division, an island position during socialism, the collapse of outdated industries following reunification, and the vast potential for the construction of private homes in the surrounding area. At the same time, a construction boom was driven by a number of players on the back of subsidies and false expectations, making it inevitable that property prices and rents would fall.
Trend reversal in recent years This trend has been turning around since the middle of the last decade. The population is growing again, and Berlin is a particularly attractive location for young people, who are drawn to its openness and dynamism, the culture and entertainment on offer, the large number of universities and other educational
facilities, and the fact that the city caters for every conceivable niche interest. The low level of rent to date makes it possible to live in far more generously proportioned surroundings than in other cities. Visitors from New York, Paris or London, for example, are invariably amazed that many students in Berlin enjoy housing conditions that only couples on two good salaries could afford back home. Over the past decade, Berlin’s housing market has seen new construction activity all but grind to a halt. At the same time, the housing stock has contracted due to demolitions, conversions, combinations, and vacancies driven by constructional or economic considerations. Accordingly, the downward trend in terms of prices and rents has long since bottomed out. The relationship between income and property prices and rents has yet to change significantly, but it is expected to do so. Income and employment are forecast to enjoy moderate growth in the medium term. However, the property market has started to see an aboveaverage increase in both prices and rents due to the following factors: n Over the past decade, vacant housing reserves have absorbed much of the rise in demand, but these are now being exhausted. This is particularly apparent in the number of generous inner-city apartments in good locations, often in older buildings. New construction activity is not keeping pace with the growth in demand. The number of new properties completed each year, including construction measures on existing properties, remains significantly below 5,000 units
whereas the number of households has grown by an average of more than 15,000 a year in recent times. n The narrowing of the market and the resulting price increases are reinforcing each other. People are moving house less often even if their current apartment is too large, because smaller units are often more expensive due to higher starting rents. A change in the supply/demand dynamic is leading to increased greed on the part of some suppliers and a greater willingness to pay on the part of potential residents. n Different groups are discovering the benefits of living in the big city, such as employment, infrastructure and leisure facilities and social and cultural interactions. For many people around the world, living in the heart of a metropolis is worth paying a little more. Residents happy to pay a premium For all these reasons, Berlin’s residents are now investing a growing proportion of their income in metropolitan living. Many are happy to do this because of the access to valuable urban options. Others who are tied to a location do so far less of their own free will. But even for these residents, an increased housing cost ratio does not necessarily spell social and economic disaster. As this report shows, the change in the relationship between housing costs and income is extremely varied across the different parts of the city and the different types of building and neighborhood. In future, there will still be affordable niches for low-income tenants – and up-and-coming areas for discerning residents and private and commercial investors.
Munich has the highest purchasing power, but also the highest consumption and rent costs Comparison of housing cost and retail purchasing power in Germany’s major cities City
GfK purchasing power per resident in €/month
Retail purchasing power 1) per resident in €/month
Basic rent in €/m2/month
Total rent 2) per resident in €/month
Purchasing power per resident, without retail purchasing power, without total rent in €/month
Munich
2,239
567
12.08
592
1,079
Cologne
1,816
486
8.28
431
898
Frankfurt am Main
1,911
501
10.94
569
841
Hamburg
1,777
476
9.72
500
801
Berlin
1,484
421
6.59
349
714
1) Retail purchasing power includes the purchasing power attributed to each resident of a location for consumption, not including costs such as telecommunications, car ownership, amortization and insurance that arise independent of a location 2) Basis for calculation: 1.8 residents per household, incl. operating costs – Munich: 2.94 €/m 2 (2009; source: Munich rent index), Cologne: 3.14 €/m 2 (2009; source: Cologne operating costs index 2011), Berlin: 2.27 €/m 2 (2009; source: BBU), Hamburg: 3.13 €/m 2 (2009; source: Hamburg operating costs index 2011), Frankfurt am Main: 2.90 €/m 2 (2008; source: Frankfurt am Main Housing Office) Source: GfK, compiled by: CBRE
In the table, the retail purchasing power per resident and the rent per resident is subtracted from the GfK’s resident purchasing power in each city. A figure of 1.8 residents per household was used as the basis for the calculation. The resulting figure represents the amount of money residents of each city have available to them, either for saving or spending on luxuries. 3_HousingMarketReport_Berlin_March 2012
Growth in the city – housing market sees gap between central and outer locations
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erlin is continuing to grow. More than 3.4 million people have their main residence in the city – a figure that has only been beaten once since World War II, in a brief period following the fall of the Berlin Wall. In the first nine months of 2011 alone, the number of inhabitants increased by almost 30,000. This development is largely attributable to the strong migration surplus: 116,000 people moved to Berlin during this period, while 87,000 people left the city. In contrast to the general demographic trend in Germany, however, the number of births also exceeded the number of deaths by 1,200. In particular, this demonstrates that Berlin is becoming increasingly attractive for young adults and families. “Berlin is getting younger – and gaining new momentum for further growth,” enthuses Jörg Schwagenscheidt, Chief Operating Officer of GSW Immobilien AG. Taking a medium-term view of the last five years, this population growth has primarily benefited a belt of districts running from north to south: the front-runner, Pankow, as well as Mitte, Friedrichshain-Kreuzberg, Treptow-Köpenick and Neukölln. By contrast, districts located to the east or west of the city fall substantially below average. However, even Steglitz-Zehlendorf recorded population growth of 2.6 percent. Reinickendorf in northwestern Berlin was the only district to see a slight decline in the number of inhabitants. The traditional location priorities of potential residents remain unchanged: according to a study by the Berlin-Brandenburg
Berlin Barometer
7
5
3
4
2
1 11 10
6
Built-up space Water
Forest /park
12
while the number of self-employed people also increased. The only decrease was in the number of people in marginal employment, e.g. so-called “one-euro jobs.” The economic sectors with the highest growth in employment rates were industry and construction, both of which performed more strongly in Berlin than in Germany as a whole. Growth in the service sector was slightly lower.
One particularly notable development is the booming tourist industry, with more than 20 million overnight stays every year – a figure that places Berlin third in Europe behind Paris and London. Tourism is likely to receive a significant boost from Youth drawn to the opening of Berlin-BrandenThe population growth in Berlin is closely linked to rising levels of center, parents to burg International Airport (BBI), economic output, employment greener outskirts which is scheduled for June 3, and income. Although the city 2012. Lufthansa alone is planstill has the highest unemployment rate in ning to fly directly from Berlin to 38 European Germany – a knock-on effect of the economic cities – compared with just eight at present. structure that was inconsistent with wider In a short space of time, the urban region market developments prior to the fall of the will see a dramatic relocation of jobs from Berlin Wall and that subsequently collapsed the area around the current Tegel Airport in to a significant extent – the low point of this northern Berlin to the new airport south of downturn has long been passed. According the city. The overall employment effect is to the most recent figures from 2011, the expected to be comfortably positive. Tegel number of people in employment increased will enjoy new opportunities as a result of by 1.3 percent over the course of the year, its planned development into a location for putting Berlin in line with the average for Ger- technology and commerce, while the surmany as a whole. The unemployment rate rounding residential areas will no longer be fell to 13.3 percent but remains extremely affected by aircraft noise and will benefit unevenly distributed throughout the city. The from new open spaces. However, these efnumber of people in work and paying social fects were not yet reflected in the rental and security contributions rose by 2.6 percent, price trends in 2011.
City district
8
9
Association of Housing Companies and Associations (BBU) covering the period from 2006 to 2010, 18- to 25-year-olds preferred affordable older neighborhoods in the inner city or just outside the S-Bahn commuter train ring, while areas at the edge of town with poor infrastructure were extremely unpopular. The situation among people moving to Berlin – a large proportion of whom belong to the aforementioned age group – is similar. By contrast, families with children under six years of age went in precisely the opposite direction, moving to green suburbs far from the older neighborhoods in and around the city center.
Residents 20111)
1 Charlottenburg-Wilmersdorf
313,166
1.5
2 Friedrichshain-Kreuzberg
262,434
2.2
3 Lichtenberg
254,866
0.8
4 Marzahn-Hellersdorf
247,917
0.3
5 Mitte
328,778
2.7
6 Neukölln
309,682
2.6
7 Pankow
362,650
4.5
8 Reinickendorf
242,973
–0.7
9 Spandau
219,247
1.1
10 Steglitz-Zehlendorf
292,358
2.6
11 Tempelhof-Schöneberg
329,970
1.0
12 Treptow-Köpenick
240,341
3.0
3,404,382
1.9 2)
Berlin total 1) people with main residence in Berlin, as of: June 2010
4_HousingMarketReport_Berlin_March 2012
Population development 1) 2006 to 2011 in %
2) average
3) all employable civilians
These trends were characterized by general city-wide growth, with median asking rents rising by 7.8 percent and asking prices for owner-occupied apartments increasing by as much as 8.3 percent. “The drive towards the city center is clear for all to see: Mitte district recorded the highest absolute rise in both rents and purchase prices, as well as the largest percentage increase in rents,” notes Dr. Henrik Baumunk, Head of Residential Valuation Germany at CBRE in Germany. “Meanwhile, rental growth in the neighboring district of Friedrichshain-Kreuzberg was only slightly less pronounced.” Pankow, which is home to the neighborhood of Prenzlauer Berg, and the traditionally middle-class urban district of CharlottenburgWilmersdorf were also extremely popular among buyers and tenants alike. TempelhofSchöneberg is catching up quickly in both categories with the notable exception of the south of the district, which is far from the city center. Trends in the prosperous green district of Steglitz-Zehlendorf are varied: rents are seeing only average development, with the district’s distance from the city center proving to be an obstacle in this market segment, but owner-occupied residential units are hot property. The opposite was true in Neukölln, where rents enjoyed slightly above-average growth. Nevertheless, Neukölln is a source of hope for investors, with asking prices for apartment buildings increasing significantly from a low starting point. However, it should be noted that this assessment is based on a small num-
Population density per km2 2010
Average 3) unemployment rate 2011 in %
About GSW With a portfolio of around 53,000 residential units, GSW Immobilien AG, which was formed in 1924, is one of the leading private residential property companies in Berlin. A GSW subsidiary also manages around 17,500 residential and commercial units for third parties. GSW’s corporate strategy is focused on the long-term management of residential properties, applying a systematic approach aimed at increasing both customer satisfaction and operational efficiency. As of December 31, 2010, the company’s real estate portfolio was valued at around €2.6 billion. Since December 31, 2010, GSW has acquired residential properties with a value of around €330 million.
CBRE: Leading residential real estate valuation company CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquar-
tered in Los Angeles, is the world’s largest commercial real estate service provider in terms of fiscal year 2010 revenues. With around 31,000 employees in more than 300 offices around the world (excluding affiliates), CBRE provides real estate services for owners, investors and occupiers of commercial property. Its services are concentrated on the areas of capital markets, letting, valuation, corporate services, research, retail, investment management, property and project management, and building consultancy. Since 1973, CBRE has been represented in Germany with its head office in Frankfurt/Main and branches in Berlin, Dusseldorf, Cologne, Hamburg and Munich. CBRE Residential Valuation Germany is one of the market leaders for the valuation of residential real estate portfolios. In 2011, around 700,000 residential units with a volume of some €38 billion were valued. Seven of the top ten institutional real estate portfolio holders are CBRE customers.
ber of asking prices. Lichtenberg is characterized by a similar phenomenon. Although the district – like Reinickendorf – is only gradually becoming more popular among tenants and buyers of apartments, asking prices for apartments have developed well despite the stagnation in the population. It is notable that
the three districts that are furthest from the city center also have the lowest levels of rental and price development: the growth enjoyed by the city and the upturn on the market as a whole is reflected in Marzahn-Hellersdorf, Spandau and Treptow-Köpenick to a far lesser extent than in other districts.
Existing apartments 2010
Newly finished apartments 2010
Permits for building new apartments 2010
Vacancy rate 31.12.2009 in %
4,952
11.3
182,719
232
30
3.0
13,285
16.6
144,668
206
684
2.1
5,020
12.9
136,195
136
47
3.0
4,046
12.5
106,199
68
10
6.2
8,442
15.2
186,893
78
128
3.8
6,948
18.5
144,795
42
3
4.3
3,599
10.5
184,692
802
833
2.4
2,704
15.4
102,541
50
8
2.7
2,463
14.8
97,613
58
59
4.2
2,882
10.2
129,191
139
41
3.9
6,330
11.6
167,815
22
5
2.6
1,440
10.8
102,283
209
76
2.2
1,685,604
2,042
1,924
3.3 2)
3,881
2)
13.3
2)
Sources: Berlin-Brandenburg Statistics Office, Federal Employment Office (unemployment rate), empirica (vacancy), compiled by: CBRE
5_HousingMarketReport_Berlin_March 2012
Rental growth throughout the city – particularly for prime properties in the center
E
xactly 107,564 rental property advertisements from 2011 were recorded, allocated to the 190 Berlin postcode areas and analyzed for the purposes of this Housing Market Report. The overall trend is clear: compared with the previous year, average (median) asking rents for the market as a whole increased by 7.8 percent. The growth rate from 2009 to 2010 was only 4.5 percent. At the time, there were still districts where asking rents were stagnating or even falling, but growth is now taking place across the board – although development remains uneven.
ally be realized. Furthermore, apartments are continuing to leave the rental market without this being reflected in the statistics. Key factors in this respect are likely to be conversion for use as holiday apartments and for commercial purposes, as well as non-Berlin residents establishing second homes in the city. Although there are still vacant housing reserves in Berlin, these are no longer distributed throughout the city, but are primarily found in individual locations on the edge of town – particularly Marzahn-Hellersdorf and Spandau.
City and luxury in particularly high demand “The reasons for this growth can be found on The growth in asking rents is characterized by both sides of the market, with demand in- the splintered nature of development. This creasing but new construction and renovation relates firstly to spacious locations: the more activity remaining at an extremely low level, central a district, the sharper the rise in asking particularly in the rental property segment,” rents; conversely, the more peripheral the locanotes Michael Schlatterer, Real Estate Valua- tion, the weaker the rental growth. Secondly, tion Team Leader at CBRE in Germany. This there is a split in terms of quality. In the upper demand trend is being driven by market segment, which consists of growth in the population, the Strong growth, the most expensive 10 percent of economy and income, which properties advertised, asking rents weak level of is not being matched by a corincreased by 9.9 percent. This comresponding expansion in the new construction pared with 7.8 percent for the marnumber of available properties. ket as a whole and just 4.6 percent Although new construction activity increased in the lower market segment, which consists slightly, the figures speak for themselves: the of the most affordable 10 percent of propnumber of inhabitants rose by almost 30,000 erties advertised. “The increase in rents in in the first nine months of 2011, with the Berlin is most pronounced in the high-quality number of households climbing by around segment,” comments Jörg Schwagenscheidt, 17,000. Meanwhile, construction approval Chief Operating Officer of GSW Immobilien was issued for 5,631 apartments – which is AG. “By contrast, rental growth in the lower not to say that all of these projects will actu- market segment is far more moderate.”
HousingMarketReport methodology – advertised rental properties The analysis takes in the asking rents for apartments in Berlin; in 2010 and 2011, a total of 243,846 available rental properties were evaluated. The median values for both years were calculated, i.e. the rental level that is higher than half of all available properties and lower than the remaining half. In order to present the extremes of the respective markets, however, the lowest and highest 10 percent of asking rents are presented separately for each district and the city as a whole. The medians within the respective segments are also presented.
In terms of the market as a whole, there is a new front-runner when it comes to average (median) asking rents: at €8.02 per square meter, Friedrichshain-Kreuzberg comes in just ahead of Charlottenburg-Wilmersdorf with a figure of €8.00. However, this order is reversed in the lower market segment: at €5.65, the middle-class western district is somewhat more expensive than the lively inner-city area with its average rents of €5.49. The highest rents in the top segment and the most pronounced internal price gap between the most expensive and simplest apartments
Current rental development Rental price range for new lettings, 2011 Top market segment All market segments Trend 2) Change Change Median in Median in €/m2/month from 2010 €/m2/month from 2010 in % in %
District
Number Middle market segment of rental price range in €/m2/month offers 4 6 8 10 12 14
Charlottenb.-Wilm.
11,374
6.02 – 12.19
5.65
2.7
14.25
8.1
8.00
6.4
Friedrichsh.-Kreuzb.
7,611
6.00 – 10.46
5.49
6.9
11.86
10.7
8.02
11.1
Lichtenberg
5,035
4.84 – 8.19
4.52
3.5
8.60
5.5
6.10
5.0
Marzahn-Hellersd.
7,882
4.01 – 6.53
3.63
2.9
7.12
1.7
4.79
2.1
Mitte
14,027
5.13 – 13.08
4.84
7.6
15.00
8.9
7.07
13.1
Bottom market segment Median in Change €/m2/month from 2010 in %
Neukölln
6,641
5.00 – 8.12
4.76
6.8
9.08
11.3
6.24
8.2
Pankow
13,034
5.71 – 11.12
5.39
6.5
13.00
12.7
7.41
7.4
Reinickendorf
7,840
4.67 – 7.98
4.31
7.2
8.58
3.0
5.91
6.4
Spandau
9,042
4.36 – 7.03
4.06
2.1
7.52
4.3
5.52
4.9
Steglitz-Zehlendorf
8,764
5.62 – 10.00
5.15
4.0
11.08
4.4
7.23
6.0
Tempelh.-Schöneb.
8,944
5.29 – 9.85
4.99
4.9
11.74
16.5
6.84
10.1
Treptow-Köpenick
7,370
5.03 – 8.00
4.84
6.8
8.73
6.0
6.13
4.7
107,564
4.87 – 10.06
4.50
4.6
12.04
9.9
6.59
7.8
Berlin average
1) excl. bottom and top tenth percentile of quotes 2) forecast 12-month-trend for total market segment
6_HousingMarketReport_Berlin_March 2012
j j j j j j j j j j j j j
Source: IDN ImmoDaten; compiled by: CBRE
Rental apartments: Current position in market cycle 2011 Rental growth accelerating
Rental growth slowing Berlin total
L
B
Rental decline accelerating
Rental decline slowing
MH Marzahn-Hellersdorf
Lichtenberg
Neukölln N
Sp Spandau
Tempelhof-Schöneberg TS
TK Treptow-Köpenick
Mitte M
SZ R
Pankow
P
Steglitz-Zehlendorf
Reinickendorf
CW Charlottenburg-Wilmersdorf
FK Friedrichshain-Kreuzberg
Source: CBRE
The graph shows the position of the districts and the city as a whole within the rental market cycle as derived from market data and trend forecasts. The districts at the far left are at the start of a rental growth phase; for districts to the right along the curve, this phase is further developed.
can be found in Mitte. This district is divided into two parts both socially and geographically. Rents in the historical Mitte area, Potsdamer Platz and the areas around the Tiergarten park are increasingly approaching city levels. The most expensive market segment in the district is concentrated in these neighborhoods, with median asking rents of €15.00 per square meter – which also represents the peak for Berlin as a whole. The other part of Mitte consists of Moabit and Wedding in the north-west of the district, where simpler residential buildings from the imperial, inter-war and post-war periods are interspersed with industrial, railway and port facilities. Moabit and Wedding have a concentration of apartments in the lowest price segment, where Mitte records median asking rents of €4.84 per square meter, slightly higher than the city-wide average of €4.50. In Steglitz-Zehlendorf, rents are above-average but are no longer seeing strong growth. Large sections of the green south-west of Berlin are dominated by owner-occupied detached houses. However, there are also neighborhoods with simpler apartment buildings, particularly in the east of the district. For the most part, there is no great demand for these properties on account of their distance from the city center. However, many of them offer high quality, with green surroundings and an infrastructure that is extremely reasonable given their location. Neukölln also has a high-end segment The districts of Pankow, TempelhofSchöneberg and Neukölln radiate from the city center to the edge of Berlin like the slices of a cake. The attractiveness of the more central neighborhoods in particular means that asking rents in two of the three districts are above-average for Berlin as a whole; meanwhile, rents
in Neukölln have come closer to the city-wide average following strong growth. Even this once stigmatized district is now home to a high-end segment, with average asking rents of €9.08 for the most expensive 10 percent of properties advertised. Lichtenberg, Reinickendorf and TreptowKöpenick are a trio of relatively unspectacular districts with below-average asking rents of around €6.00 per square meter and muted rental growth. All three districts are very heter-
ogeneous, with properties ranging from lakeside villas to prefabricated apartment blocks. Marzahn-Hellersdorf to the east and Spandau in the far west bring up the rear in terms of the overall market. Housing stock is dominated by simple apartments from the post-war decades, and these areas have significantly higher vacancy rates than many other districts. Asking rents for properties in the lowest market segment in Marzahn-Hellersdorf come in at a modest €3.63 per square meter.
Cyclical development on the housing market The real estate market develops cyclically and in waves. The waveform cycle graph produced by CBRE shows the phase in which each of the local markets currently finds itself. The extremely high property prices at the apex are followed by a drop in prices that initially accelerates before slowing towards the bottom of the curve. After passing the low point, prices return to growth slowly at first, before picking up speed. As they approach the apex, the rate of price growth slows again. This cyclical development can be attributed to the delayed reaction on the supply side to changes in demand. As a result, growth in the advertised rental space is typically at its greatest when providers respond to past price rises by making new properties available. Due to this time lag, properties that need to be made marketready in response to price rises sometimes only reach the market after the downturn
has already started. By contrast, relatively few properties are made ready for the market when prices are low. This means that they cannot be used to meet the greater demand in the next phase of the cycle, resulting in price growth followed by excess supply establishing itself once again. Movements within the waveform cycle of the real estate market can occur backwards as well as forwards. The presentation of the market as a waveform reflects the amplitudes of the real estate cycle and allows the reader to quickly determine the phase in which a market currently finds itself. Generally speaking, the cycle on the local residential property markets is slower and weaker than on the office markets. Movements within the cycle are triggered by sociodemographic and socioeconomic conditions and, in particular, soft image factors.
7_HousingMarketReport_Berlin_March 2012
Buyers of owner-occupied homes love the city, investors seek opportunities on the outskirts
T
here was also an upturn on the markets for the purchase of owner-occupied properties and rented apartment buildings in Berlin in 2011. The average (median) asking price for apartments rose by 8.3 percent across the city and that for investment properties rose by 3.5 percent. The difference is largely explained by location factors. The focus of owner-occupied properties lies in the soughtafter districts of Charlottenburg-Wilmersdorf, Pankow, Mitte and Steglitz-Zehlendorf. Over half of all properties on offer are concentrated in these four districts and they are also accorded priority by many potential residents. By contrast, a clear shift in the location of properties on offer is to be noted for apartment blocks: in the expensive districts of SteglitzZehlendorf, Charlottenburg-Wilmersdorf and Friedrichshain-Kreuzberg, their number fell
HousingMarketReport methodology – investments and owner-occupied properties In 2010 and 2011, a total of 144,639 adverts for owner-occupied properties and 4,372 adverts for apartment buildings were evaluated. In the same way as for rental properties, the average (median) values were calculated on this basis. The lowest and highest 10 percent of asking prices were also determined separately.
sharply on the previous year while in the more vertised on the market. Deferred negotiations modest areas of Spandau, Reinickendorf and of previous years were also clearly brought Marzahn-Hellersdorf, it increased. “In the more speedily to a conclusion in 2011 after sought-after residential locations it is often the trend towards more purchases set in back the case that attractive investment objects dis- in 2009 already, according to data from the appear before they have even been advertised Advisory Committee. Showing a much greater due to the high demand. However, there are increase than the number of purchases in the still some entry opportunities offirst half of 2011 were revenues, fering an attractive return in other which climbed from €531.3 milMore sales, parts of the city,” said Michael lion in the first half of 2010 to more speed, Schlatterer, Real Estate Valuation €1,016.4 in the first half of 2011, more revenues a jump of 91 percent. ConsiderTeam Leader at CBRE in Germany. ably more large apartment buildThe number of properties advertised decreased ings and entire groups of apartment buildings in comparison with 2010 on both sub-mar- were traded. The land area of the apartment kets: by 16.3 percent to 1,992 for apartment buildings traded (the Advisory Committee buildings and 3.9 percent to 70,873 for own- only records this rather than the living space) er-occupied properties. Owing to concerns doubled in size from 52.7 to 107.2 hectares. about monetary stability and for lack of any The number of purchases of owner-occupied investment alternatives, many existing own- properties also increased by 19 percent in the ers clearly decided to retain their properties first half of 2011 and monetary revenues by despite an increase in sales prices. 33 percent – likewise very significant albeit nowhere near as dramatic as investment revThis seems to be contradicted by the fact that, enues. despite the fall in the number of investment properties on offer, the number of purchases Expensive investments in the southwest rose very sharply. According to the Advisory On the market for apartment buildings, StegCommittee for Property Values, at 481, the litz-Zehlendorf is in the lead with an average number of acquisitions of apartment blocks asking price of €1,500 per square meter. Mitte alone in the first half of 2011 was 48 percent is at the bottom end of the scale at €930. above the same figure for the previous year Although this may initially come as a surprise, (more recent figures were not yet available at on closer inspection it corresponds with the the time of going to press). Obviously a lot of overall trend in the city. Business has quiettransactions were directly initiated and con- ened down in the historic center and the focus cluded without the offers previously being ad- of offers is now concentrated in the Moabit
Current price development, apartment housing Purchase price range, 2011 District
Number Middle market segment 1) sale price range in €/m2 offers 0 1 2 3 4
Bottom market segment Median Change in €/m2 from 2010 in %
Top market segment All market segments Trend 2) Change Change Median Median in €/m2 from 2010 in €/m2 from 2010 in % in %
Charlottenb.-Wilm.
135
921 – 3,983
828
12.6
5,190
10.0
1,315
–21.5
Friedrichsh.-Kreuzb.
78
444 – 2,135
191
– 58.1
3,750
171.5
1,071
3.8
Lichtenberg
111
278 – 1,656
213
–9.3
1,802
3.1
1,100
27.5
Marzahn-Hellersd.
98
372 – 1,836
192
– 58.7
2,830
32.5
1,051
–4.6
Mitte
186
670 – 1,732
629
25.8
1,953
– 47.9
930
4.8
Neukölln
127
635 – 1,707
534
11.8
2,015
– 0.8
1,086
28.8
Pankow
196
495 – 1,581
399
–14.6
1,697
0
1,126
6.2
Reinickendorf
284
649 – 2,022
568
0
2,339
– 4.6
1,185
–0.4
Spandau
168
645 – 2,225
446
– 8.0
2,535
8.8
1,222
–7.6
Steglitz-Zehlendorf
207
933 – 2,442
881
5.1
2,954
–12.5
1,500
5.4
Tempelh.-Schöneb.
194
647 – 1,826
445
– 22.8
2,252
19.5
1,235
– 0.4
Treptow-Köpenick
208
499 – 2,397
451
35.6
2,656
28.2
1,003
0.8
1,992
636 – 2,027
481
2.1
2,550
– 4.0
1,149
3.5
Berlin average
1) excl. bottom and top tenth percentile of quotes 2) forecast 12-month-trend for total market segment
8_HousingMarketReport_Berlin_March 2012
k j j l j j j k k j j k j
Source: IDN ImmoDaten; compiled by: CBRE
Apartment housing and owner-occupied housing: Current position in cycle 2011
Owner-occupied apartments Sales price growth accelerating
Sales price growth slowing Lichtenberg
Lichtenberg Neukölln
N
SZ Steglitz-Zehlendorf
B
Berlin total Reinickendorf
L
TK
Sales price decline slowing
Treptow-Köpenick
B Berlin total
R
L
Sp Spandau
N
MH Marzahn-Hellersdorf
Steglitz-Zehlendorf SZ
R
Friedrichshain-Kreuzberg FK Charlottenburg- CW Wilmersdorf
Sales price decline accelerating
Apartment housing
TS
Marzahn-Hellersdorf MH
Reinickendorf
Tempelhof-Schöneberg
TK Treptow-Köpenick
M
Mitte
CW Charlottenburg-Wilmersdorf FK Friedrichshain-Kreuzberg
Tempelhof-Schöneberg TS
P Pankow P
M Mitte
Source: CBRE
The graph shows the position of the districts and the city as a whole within the market cycle for the purchase of owner-occupied properties and apartment buildings as derived from market data and trend forecasts. The districts at the far left are at the start of a period of price growth, whereas this growth phase has partly already taken place for the districts higher up the curve. The districts to the right of the peak are seeing falling prices, while the districts at the far right are likely to recover from the low point in the cycle and record price growth again in the near future.
and Wedding areas of the district that are characterized by modest pre- and post-war buildings and less desireable locations. All of Berlin’s remaining districts lay very close to one another within a range from €1,003 to €1,315. In terms of the development of asking prices Charlottenburg-Wilmersdorf and Spandau occupy the bottom positions at -21.5 percent and -7.6 percent respectively. However, Lichtenberg recorded a more positive development of asking prices against the previous year at 27.5 percent. “The fact that asking prices are also increasing outside the city center reflects the positive expectation of investors for these locations. A lot of development potential
still lies dormant here,” said Jörg Schwagenscheidt, Chief Operating Officer of GSW Immobilien AG. Pricey apartments in the city center The asking prices for owner-occupied properties differ much more sharply than those of investment properties. Here Mitte comes top at €2,813 per square meter. The market is concentrated on the core of Berlin and on high-quality new constructions and lavishly renovated old buildings. Pankow, Friedrichshain-Kreuzberg and Charlottenburg-Wilmersdorf rank well below Mitte at between €2,324 and €2,143 – not by coincidence all districts whose markets for owner-occupied properties are concentrated
entirely or largely on the inner city. With regard to top properties, Mitte has an even greater lead. On the sub-market of the most expensive 10 percent of properties advertised, the average asking price here amounted to €5,320 per square meter. Spandau comes last with an average of €1,050 for the entire market; Neukölln and Marzahn-Hellersdorf are slightly above this and almost equal at €1,118 and €1,188 respectively. This bottom end of the scale is characterized by areas on the edge of the city. The owner-occupied property market in Neukölln is also largely concentrated in the outlying areas of Buckow and Rudow and hardly at all in North Neukölln which has recently become somewhat up-and-coming.
Current price development, owner-occupied apartments Purchase price range, 2011 Top market segment All market segments Trend 2) Change Change Median Median in €/m2 from 2010 in €/m2 from 2010 in % in %
District
Number Middle market segment 1) sale price range in €/m2 offers 0 1 2 3 4 5
Charlottenb.-Wilm.
11,662
1,189 – 3,891
1,095
4.0
4,592
20.3
2,143
9.9
Friedrichsh.-Kreuzb.
6,805
1,333 – 3,362
983
3.0
3,664
7.8
2,310
5.3
Lichtenberg
1,796
885 – 2,652
807
4.1
2,822
11.5
1,562
5.9
882
627 – 1,890
550
15.5
2,143
6.2
1,188
6.9
8,667
1,014 – 4,616
786
3.8
5,320
11.9
2,813
8.3 8.8
Marzahn-Hellersd. Mitte
Bottom market segment Median Change in €/m2 from 2010 in %
Neukölln
2,917
761 – 2,106
652
20.1
2,335
7.5
1,118
Pankow
10,960
1,331 – 3,500
1,136
12.0
3,819
7.7
2,324
9.7
Reinickendorf
4,307
876 – 2,223
787
13.1
2,686
13.7
1,300
10.5
Spandau
3,494
714 – 1,974
614
–4.1
2,371
13.5
1,050
2.4
Steglitz-Zehlendorf
8,540
1,098 – 3,391
1,000
4.4
3,714
7.4
1,750
9.5
Tempelh.-Schöneb.
6,785
971 – 3,052
879
8.7
3,380
5.4
1,616
12.5
Treptow-Köpenick
4,058
885 – 2,897
800
9.0
3,108
7.2
1,482
5.7
Berlin average
70,873
981 – 3,511
848
6.9
4,048
10.8
1,883
8.3
1) excl. bottom and top tenth percentile of quotes 2) forecast 12-month-trend for total market segment
j j j k j j j k k j j j j
Source: IDN ImmoDaten; compiled by: CBRE
9_HousingMarketReport_Berlin_March 2012
Increase in new construction concentrated on high-end buyers and highly desireable areas
F
ollowing a long period of weakness, Berlin has recently seen an increase in apartment construction. The annual production rate had been below 4,000 units since 2003; however, it returned to a level of 4,321 in 2010. Nevertheless, this still represents an extremely modest renewal rate of just under 0.23 percent of the total housing stock. Of this figure, only 1,924 apartments were completed in new apartment buildings, corresponding to 0.12 percent of the housing stock in this segment. The additional demand resulting from population and household growth and rising income was almost entirely absorbed by existing properties, thereby serving to reduce vacancy rates. However, new construction is now on the rise. The number of construction approvals granted in the first three quarters of 2011 was higher than in the whole of 2010. That year, a total of 5,470 residential units
were approved; in the period from January to September 2011, the number was 5,631. The construction of new apartment buildings enjoyed particularly strong growth: starting from an extremely low level, exactly 100.8 percent more apartments were approved for construction in this segment than in the first nine months of 2010. By contrast, the growth rate for detached and semi-detached houses was just 16.3 percent. This new construction activity is being driven by shortages in certain market segments and locations on the one hand, and a greater willingness and ability to pay among potential residents on the other. New residential construction in Berlin is not subsidized by grants or low-interest loans from the federal state, and there are no national subsidies available at present. Accordingly, new construction activity is concentrat-
Locations of selected new developments
ed on profitable or, at least, self-supporting market segments. Applying a local rule of thumb, this corresponds to monthly rent excluding heating of around €9 or more per square meter for rental properties, depending on land and construction costs. For newly constructed owner-occupied apartments, sales prices upward of €2,800-3,000 are required. In the planned projects, sales prices generally range from around €3,000 to €5,000 per square meter. In some cases, there are wide price ranges with individual properties offered from €2,275 per square meter; this is clearly the result of mixed calculations for apartments of differing quality. However, high four-digit purchase prices are no longer a rarity, and the developers of some particularly high-quality projects in prominent locations are already demanding €10,000 or more per square meter. Landlord calculations of monthly rents range
Owner-occupied housing Rental apartments Mixed use Exact use unknown
Reinickendorf
Spandau
Pankow
MarzahnHellersdorf
Mitte
Lichtenberg CharlottenburgWilmersdorf
FriedrichshainKreuzberg TempelhofSchöneberg
SteglitzZehlendorf
Source: CBRE, as of December 2011
10_HousingMarketReport_Berlin_March 2012
Neukölln
TreptowKöpenick
from €9 per square meter in a project that is being realized by the municipally owned Gesobau to €26 in the “Diplomatenpark” situated on the edge of the Tiergarten park.
tween the larger projects and the traditional gap projects. On completion, they will be home to between 30 and 50 apartments. The medium-sized segment also dominates when it comes to the apartment sizes, which range from 100 to 200 square meters. n The around 18 major projects outside the city center are extremely varied. Their scope ranges from 40 to 270 apartments, with the latter project – which is being realized by the municipally owned Gesobau AG in Mendelstraße in Pankow-Heinersdorf – consisting of rental properties. However, the majority of these projects are located in Steglitz-Zehlendorf and Charlottenburg-Wilmersdorf. The apartments cover all size segments from 54 to 300 square meters. n Six of the projects are smaller city buildings with between eight and a maximum of 21 apartments in central locations in Berlin-Mitte. Only owner-occupied apartments ranging from 40 to 310 square meters are planned. n A further five projects are suburban villas in green areas with fewer than 10 apartments. n Some of the projects cannot be allocated to the aforementioned categories. They are aimed at specific groups such as senior citizens (Residenz Havelgarten), comprise exorbitantly large city apartments with floor space of up to 570 square meters (“Kronprinzengärten” near Unter den Linden) or are that rare breed, a centrally located apartment building in a green area – such as the houses in the Diplomatic Quarter in the Tiergarten neighborhood.
Focus on 87 projects Prices serve to restrict the pool of potential residents. Those who could afford a newly constructed apartment often already have considerable assets at their disposal and exacting standards in terms of size, appointments and, last but not least, location. Accordingly, the construction of apartments in Berlin is not a phenomenon that is occurring across the board, but rather is largely concentrated on particularly highly sought-after areas. In early 2012, CBRE examined a total of 87 new construction projects. Almost one-third are located in Mitte district, including 25 in the historical Mitte neighborhood and three in the Tiergarten area. A further 20 projects are located in Pankow, with Prenzlauer Berg accounting for more than half of this figure. Twelve construction projects are located in SteglitzZehlendorf, 11 in Charlottenburg-Wilmersdorf and nine in Friedrichshain-Kreuzberg. This means that these five districts account for 81 – or 93 percent – of the 87 projects surveyed. Construction activity is primarily focused on urban locations in environments that are already densely developed. Only a handful of projects in Charlottenburg-Wilmersdorf and Steglitz-Zehlendorf are being constructed in more spread-out neighborhoods of detached houses. The other seven districts account for just six of the construction projects. Notable examples include three projects on the sites of former industrial facilities in Lichtenberg with a focus on loft living, and a major project in Treptow-Köpenick with around 350 units. The projects examined are concentrated on owner-occupied apartments; indeed, rental apartments are planned in fewer than 20 percent of cases. The majority of the projects can be categorized as follows in terms of their location and size focus: n Around 20 larger projects, each offering between 50 and more than 300 apartments, are being realized on brownfield and converted sites in areas of the city that are already densely developed. This generally involves the construction of compact, larger complexes, including in existing buildings such as factory lofts. The size of these sites means that they can often be planned, developed and marketed relatively flexibly and economically. However, the initial investments and financial
Marthashof Urban Village, Pankow, Stofanel Investment Diplomatenpark, Mitte, Groth Gruppe Lentzeallee, Charlottenburg-Wilmersdorf, Groth Gruppe Fünf Morgen Dahlem, Steglitz-Zehl., Stofanel Investment
burdens are high. The apartment sizes within the complex are extremely mixed, ranging from 42 to over 300 square meters per unit. n Around 15 projects have the magnitude and location of traditional inner-city Berlin buildings. Offering between 10 and 30 apartments, they are being constructed in gaps in the building structure, often between two existing buildings. In almost all cases, these properties are planned exclusively as owneroccupied apartments. n The around 20 medium-sized inner-city complexes can be classified somewhere be-
CBRE’s analysis covers projects that are intended for sale or rental to third parties. It does not include the growing but opaque segment of construction groups and associations: private individuals who come together to develop projects in a joint venture. The majority of these associations construct inner-city buildings with between 10 and 50 apartments typically used as owner-occupied properties. However, larger projects – such as the “Möckernkiez” in Kreuzberg, where around 400 apartments are planned – are also organized in the form of cooperatives. Residential construction is once again on the local government agenda. A total of 30,000 new apartments are to be constructed in Berlin during the current five-year legislative period. Authorities plan to reduce land taxes, involve state housing companies, and relax construction law. The city’s aim is to hold an international building exhibition on residential living in 2020. 11_HousingMarketReport_Berlin_March 2012
Scoring: Attractiveness for investors on the basis of district data
B
erlin also remained by far the favorite among investors with regard to residential real estate investments in 2011. Over a third (€2.3 billion) of the entire investment volume flowed into the capital. However, investors without local expertise are at a loss when it comes to understanding the heterogeneous districts, areas and neighborhoods of the city. In the past, this meant that Berlin was not included in the investment profile of many institutional investors. Specific market and location analysis Our scoring at district level provides a broad source of orientation. When it comes to making concrete investment decisions, however, specific market and location analyses and real estate evaluation are fundamental requirements. In addition, information value is limited for districts with a heterogeneous structure such as Berlin-Mitte, which consists of the former districts of Mitte, Tiergarten and Wedding.
Many of the scoring and ranking models published by real estate consultants are based on similar or identical statistics and indicators. The number or weighting of these indicators is not necessarily central to the results obtained; instead, this depends on the information value of the individual indicators and the transparency of the results. Our scoring approach allows investors to identify and individually weight the indicators that are important for them.
From an investor perspective, the indicators for scoring the attractiveness of the real estate markets in the 12 districts of Berlin in this report are: n the percentage change in the number of private households from 2005 to 2010 (source: Berlin-Brandenburg Statistical Office) n the population forecast for 2007 to 2030 in percent (source: Berlin-Brandenburg Statistical Office) n household purchasing power (source: Michael Bauer Research GmbH) n the percentage of the total workforce in employment in 2010 (source: Berlin-Brandenburg Statistical Office) n new property completions in 2010 compared with the total housing stock (apartment buildings only; source: Berlin-Brandenburg Statistical Office) n vacancy rates in percent (apartment buildings only; source: 2009 empirica Vacancy Index) n average asking rents in 2011 in €/m² (source: IDN Immodaten.net; data processing by CBRE) n the purchase price multiplier for apartment buildings in 2011 (properties advertised; source: IDN Immodaten.net; data processing by CBRE) The development of private households is included in the scoring model as an indicator of the attractiveness of the district as a location. The population forecast is a decisive factor in terms of the development of demand for
housing over the coming years. The current financial situation of the residents of the district is represented by the purchasing power per household. The percentage of the total workforce in employment reflects the social structure of the district. As in previous years, completions of new apartment buildings compared with the total housing stock and measured against the population are very low. The largest share of newly built apartments also remains attributable to the ownership segment so that no significant easing of the situation on the rental market is to be expected. The ratio of new property completions to the total housing stock can be drawn on as an indicator of the attractiveness of a district for construction projects and provides an idea of both the availability of suitable sites and the extent to which costs are covered by purchase prices and rents. Vacancy rates in apartment buildings are an indicator of the availability of residential space and the relationship between supply and demand. The lower the vacancy rate, the greater the likelihood that rents will remain stable or increase. In order to ensure that the attractiveness of a residential location for investors is included in the scoring model, the absolute asking rent level is taken into account. The purchase price multiplier, which expresses the ratio of the average asking price for apartment buildings
Scoring the city districts Total score and evaluation in the individual categories District
Development private households
Total points
Population forecast
Purchase power per household
Pankow
49
2
8
2
Friedrichshain-Kreuzberg
48
3
7
3
Treptow-Köpenick
46
8
8
1
Charlottenburg-Wilmersdorf
45
3
5
8
Mitte
40
5
6
5
Steglitz-Zehlendorf
38
1
6
8
Tempelhof-Schöneberg
34
5
2
6
Lichtenberg
33
8
4
1
Reinickendorf
33
7
1
7
Spandau
23
4
1
6
Marzahn-Hellersdorf
21
6
3
3
Neukölln
20
1
3
4
Sources: Berlin-Brandenburg Statistics Office, Michael Bauer Research (purchase power), empirica (vacancy), IDN Immodaten (rent level, purchase price factor), compiled by: CBRE
12_HousingMarketReport_Berlin_March 2012
to the average asking rent for apartments in such buildings, serves to ensure that the yield aspect is included in the scoring model. Pankow scores the most points For the purposes of points distribution, the eight indicators are subdivided into eight groups. The more positive the manifestation of a given characteristic, the higher the district’s score for that characteristic. Based on the equal weighting of the input parameters, the highest available total score is 64 points. As in the 2011 Housing Market Report, the district of Pankow also comes top in the scoring model this year. The district of FriedrichshainKreuzberg has also joined the leading neighborhoods and with the exception of household development, purchasing power and the percentage of the total workforce in employment achieves very good scores for all indicators and is therefore particularly strong with regard to the real estate market-specific indicators. Treptow-Köpenick also ranks among the top three as in the previous year. For both this district and Pankow the relatively low purchasing power (both districts) as well as the moderate household growth (Pankow) and the low rents (Treptow-Köpenick) serve to prevent an even better scoring than in the previous year. While Charlottenburg-Wilmersdorf scores above average on almost all indicators, household growth and new construction activity are low.
Employed residents
Mitte is difficult to characterize due to the heterogeneous nature of the former Mitte, Tiergarten and Wedding districts. Altogether the district scores above average almost without exception. However, the percentage of the total workforce in gainful employment is very low when compared with all 12 districts while the vacancy rate is higher than in other districts. Together with Charlottenburg-Wilmersdorf, Steglitz-Zehlendorf achieves the highest score in terms of purchasing power and alongside Pankow has the highest share of the total workforce in employment. Rents are therefore above average as are the purchase prices for apartment buildings. Tempelhof-Schöneberg and Reinickendorf perform similarly with many indicators. Both districts score negatively/poorly with regard to the population forecast and completions of new apartment buildings but perform well in terms purchasing power, low vacancy rates, household development and the share of the total workforce in employment. However, Reinickendorf falls behind TempelhofSchöneberg when it comes to rents. Lichtenberg is benefiting from the sharp household growth that is very likely to be linked to the demand-side pressure in the neighboring districts of Friedrichshain-Kreuzberg and Pankow. There are favorable investment opportunities here thanks to good key
Completion of housing construction
Vacancy rate
figures in terms of new property completions and the vacancy rate. The districts of Spandau, Marzahn-Hellersdorf and Neukölln lag slightly behind the other Berlin districts. Spandau scores above average with regard to new property completions and purchasing power and Marzahn-Hellersdorf with regard to the development of private households. Neukölln achieves significantly higher scores than the other two districts for the real estate market-specific indicators of rental level and purchase price multiplier. The vacancy rate is above average in all three districts. From the perspective of an average investor, a location is more attractive when it offers higher rents accompanied by the lowest possible multiplier for annual gross rental income. At a district level, Friedrichshain-Kreuzberg, Pankow, Charlottenburg-Wilmersdorf and Mitte (former Mitte district) are the best locations in this respect. Steglitz-Zehlendorf falls behind here – while rental levels are high, so too are purchase prices. From the perspective of a more venturesome and opportunistic investor, a location is more attractive when it offers higher growth potential in terms of rents and/or purchase price multipliers accompanied by the lowest possible current multiplier for annual gross rental income. Lichtenberg, Neukölln and Mitte (former Wedding district) offer particularly strong opportunities in this respect.
Rent level (offers)
Purchase price factor
8
8
7
7
7
3
8
8
8
8
5
7
8
3
6
7
3
5
8
6
1
6
3
6
8
8
4
3
6
2
6
1
6
5
3
3
5
5
3
4
5
2
6
2
3
2
6
2
1
1
4
2
1
1
1
1
1
1
4
5
13_HousingMarketReport_Berlin_March 2012
Photo: picture-alliance / ZB
The HousingCostAtlas: 190 “Kieze” in the spotlight
B
erlin has 190 postcode areas. On average, each one has 18,000 residents and measures 470 hectares, although this figure is often less than 100 hectares in the city center. This corresponds to what Berliners call “Kieze”:
small, extremely homogenous neighborhoods, with a distinctive character. The Housing Cost Atlas analyzes the detailed structures of the city at this level. The Kiez characteristics of the local real estate markets are highlighted.
Area type 1: Expensive central locations In these neighborhoods, the average (median) of all asking rents is over €10 per square meter while, in the top market segment – the most expensive 10 percent of apartments advertised – the figure actually exceeds €15. Such locations are situated in the heart of Berlin-Mitte, on the Kurfürstendamm and in Prenzlauer Berg. Local purchasing power is not always high. Even so, demand for the neighborhoods is so high that residents are willing to spend up to 40 percent of their income on rent including heating after moving to the area. However, people with high purchasing power keep on coming. Postal code
Section
District
Basic rent 1) total market
10178
Hackescher Markt
Mitte
11.00
99
38.3
10117
Unter den Linden
Mitte
12.00
11
36.4
10435
Kollwitzplatz
Pankow
10.27
74
35.0
10115
Chausseestraße
Mitte
10.15
52
30.7
10719
Ludwigkirchplatz
Charl.-Wilmersdorf
10.00
12
26.7
1) median in €/m2/month 2) rank among the 189 Berlin postal codes included in the study
14_HousingMarketReport_Berlin_March 2012
Purchasing power ranking 2)
Housing cost ratio in %
Each neighborhood has its own combination of rents, local purchasing power, particularly simple or particularly luxurious markets, vacancy rates and apartment sizes. For the Housing Cost Atlas, more than 100,000 properties advertised in 2011 were assigned to the 190 postcode areas. The area around the Olympic Stadium had no properties advertised, while rural Blankenfelde had only five. The number of available properties hit three figures in 161 areas, and as many as four figures in 24 areas – high enough to allow empirically sound conclusions. The data gathered is informative on an individual basis, but more so when combined. Comparison with data from the previous year, which was collected using the same method, allows a neighborhood-by-neighborhood analysis of availability and rental trends. The purchasing power data provides indications concerning the social structure. Combining this with asking rents shows whether a high
HousingCostAtlas methodology Exactly 107,564 properties advertised in 2011, complete with size and rental details, were allocated to Berlin’s 190 postcode areas. There was a sufficient statistical basis for all postcode areas except for 13159 (Blankenfelde) and 14053 (Olympic Stadium). To calculate rents including heating, flat-rate ancillary expenses of €2.64 per square meter for districts in the former West Berlin and €2.05 per square meter for districts in the former East Berlin were added to the existing net rents excluding heating. This was based on data provided by the Berlin-Brandenburg Association of Housing Companies and Associations (BBU). Michael Bauer Research GmbH calculates the average purchasing power per inhabitant and household at postcode level on an annual basis. The average housing cost ratio per household was calculated using the following formula: Average asking rent + Ancillary costs Average purchasing power
=
Average housing cost ratio
Area type 2: Up-and-coming city-center areas These areas are situated within the S-Bahn commuter train ring; the average rent per square meter rose by at least €1 and by more than 15 percent between 2010 and 2011. All of the areas in this group are characterized by old buildings and vibrant street life with individual shops and restaurants. Some used to be poor, such as Neukölln. The rental trend has recently started to pick up across the board. However, these areas are still a long way from becoming middle-class neighborhoods. Postal code
Section
District
Basic rent 1) total market
Rent development in %
Purchasing power ranking 2)
10999
Görlitzer Park
Friedrichsh.-Kreuzb.
7.54
+27.8
10825
Rathaus Schöneberg Tempelhof-Schöneb.
8.73
+20.2
84
12045
Sonnenallee Nord
Neukölln
6.97
+17.8
172
12049
Hermannstr. West
Neukölln
7.01
+16.9
173
10967
Graefestraße
Friedrichsh.-Kreuzb.
7.95
+16.3
128
97
1) median in €/m2/month 2) rank among the 189 Berlin postal codes included in the study
Area type 3: Neighborhoods in middle-class locations High rent levels but no sharp rises – the market in these areas has settled at a sound level. Such quarters can mainly be found near Kurfürstendamm and in the green south-west of Berlin. They are all good locations, but no area is part of a current trend. Anyone speculating on a boom here is undoubtedly backing the wrong horse. However, those looking for security are on the right track: rental income will remain healthy even if the current trend favoring fashionable inner-city locations recedes. Postal code
Section
District
Basic rent1) total market
Rent development in %
Housing cost ratio in %
10719
Ludwigkirchplatz
Charl.-Wilmersdorf
10.00
+2.5
26.7
14195
Dahlem
Steglitz-Zehlendorf
9.76
+2.4
25.7
10623
Savignyplatz
Charl.-Wilmersdorf
9.00
+2.4
28.0
14129
Nikolassee/Schlach.
Steglitz-Zehlendorf
8.13
+1.7
27.0
14197
Rüdesheimer Platz
Charl.-Wilmersdorf
7.12
+1.7
26.0
1) median in €/m2/month 2) Ø in €/month
Vacancy rates are taken from the index provided by Techem and the real estate research institute Empirica. Only properties managed by Techem and for which no rent is currently paid are considered to be unoccupied for the purposes of the “active vacancy rate.” In particular, this includes professionally managed apartments. By contrast, apartments in singlefamily and semi-detached houses and the simplest of apartments without central heating or hot water are not included, as they are not in competition with their real estate portfolio.
Area type 4: Kieze for rich and poor Expensive locations and simple apartments coexist here – sometimes even in the same house, where there may be an upper-class second-floor or a stylish attic floor as well as a backyard ground-floor apartment. Areas to the south and north of Tiergarten have a consistently rigorous social mix. Here, sumptuous houses around the park or by the waterside stand side by side with less attractive post-war neighborhoods. However, despite their physical proximity, links between residents with high and low purchasing power are not particularly strong. Postal code
Section
District
Basic rent 1) bottom Basic rent 1) top market segment market segment
Spread top/ bottom segment
10785
Potsdamer Platz
Mitte
5.48
17.09
11.61
10557
Moabit Südost
Mitte
4.98
15.95
10.97
10965
Mehringdamm
Friedrichsh.-Kreuzb.
5.54
14.02
8.49
12047
Maybachufer
Neukölln
5.21
12.22
7.01
14059
Schloss
Charl.-Wilmersdorf
5.09
11.60
6.51
1) median in €/m2/month
or low proportion of income is required to be spent in order to live in a specific neighborhood – in other words: whether the location is relatively important or unimportant to people in the opinion and experience of landlords. It is apparent that, in every income group, there are inhabitants who spend only 20 percent of their purchasing power on housing and others who are willing to spend more than 30 percent of their income. It is clear to see when higher-income people have recently discovered a neighborhood. Yet however individual each of the 190 postcode areas may be, many still share common typical characteristics, even if they are located in very different regions of Berlin.
Area type 5: Moderate rents and little movement Primarily on the edge of the city, but also near the S-Bahn commuter train ring, there are areas where rents are not high and are not expected to reach a high level for the foreseeable future. Either the location is too remote or the ambience too dour – such as in the neighborhoods dating from around 1970, which also suffer from excessive traffic noise. However, residents here can rest assured of one thing, at least: there is no danger of rising rents. On the contrary: landlords are mainly preoccupied with keeping hold of their existing tenants. Postal code
Section
District
Basic rent 1) total market
Rent development in %
Purchasing power ranking 2)
12627
Hellersdorf-Nord
Marzahn-Hellersdorf
4.48
–0.5
130
12057
Sonnenallee Süd
Neukölln
5.17
–0.6
113
13591
Staaken
Spandau
5.42
+0.2
43
13627
Charlottenb.-Nord
Charl.-Wilmersdorf
5.94
+1.3
176
12526
Bohnsdorf
Treptow-Köpenick
6.09
–0.9
73
1) median in €/m2/month 2) rank among the 189 Berlin postal codes included in the study
15_HousingMarketReport_Berlin_March 2012
Charlottenburg-Wilmersdorf: Muted rental growth at a high level
C
harlottenburg-Wilmersdorf is a middle- the highest median in the entire city at €5.65, class urban residential area. When the cur- while the figure of €14.25 for the top tenth is rent district was built over a hundred years only exceeded in Mitte district. ago, it gave rise to the magnificent West Berlin. After World War II, however, it became City The majority of Charlottenburg-Wilmersdorf’s West. Charlottenburg-Wilmersdorf is now re- residents can afford high rents. Household turning to its former glory. Life here is urban purchasing power is above-average for Berand stylish; many residents earn lots of money lin in 20 of the district’s 24 postcode areas. and enjoy spending it – including on high-end Indeed, Grunewald (14193) and Eichkamp/ living. The spacious houses from the imperial Heerstraße (14055) with their detached housera as well as the detached houses and owner-occupied properes and apartment complexes in Refined – but no ties, and the Kurfürstendamm green areas, primarily in Westend, areas around Ludwigkirchplatz Grunewald and Schmargendorf, longer the most (10719), Sybelstraße (10629) and lower, Eichkamp (10455), which is close to the expensive are ideal for this. Savignyplatz (10623) are in the woods but somewhat isolated and congested, top 10 percent in Berlin in terms and – right at the bottom – CharlottenburgRental levels in Charlottenburg-Wilmersdorf of purchasing power. Only Charlottenburg- Nord (13627), where the 0.3 percent rise in have long been the highest in the city. Av- Nord (13627) and the area around “Das average asking rents was one of the lowest erage (median) asking rents again rose by Schloss” (14059), which suffers from heavy in the whole city. 6.4 percent year-on-year to €8.00 per square traffic congestion and has lots of simple postmeter in 2011, although the increase was war housing, have significantly lower figures. The housing cost ratio, i.e. the ratio of rent lower than in the previous year and is below including heating to household purchasing the average for Berlin as a whole (7.8 per- Broadly speaking, there are three types of are- power, is above the city-wide average despite cent). Landlords clearly realize that there are as in terms of rental levels. With medians of €9 solid incomes almost everywhere in the dislimits to what people are prepared to pay, and to €10 per square meter, the most expensive trict. Tenants believe that it is worth paying a that not all residents in this district are afflu- neighborhoods are those near Kurfürstend- premium to live centrally. This premium is parent. The somewhat muted rental growth has amm and its western borders with Grunewald ticularly high on both sides of the eastern part had one particularly interesting consequence: (14193). At €7.50 to €9, the mid-range is of Kurfürstendamm around Tauentzienstraße Charlottenburg-Wilmersdorf is no longer the mainly centered on inner-city areas somewhat (10789), Ludwigkirchplatz and Savignyplatz as most expensive district in the city; fashion- further away from Kurfürstendamm, such as well as Sybelstraße (10629). These areas are able Friedrichshain-Kreuzberg, situated to the Karl-August-Platz (10625), Güntzelstraße in the top fifth in Berlin in terms of housing east of the district, now beats its average by (10717), Westend (14052 and 14057) and Li- cost ratio. Volkspark West (10713), Eichkamp two cents. However, Charlottenburg remains etzensee (14050). The lower segment, at just (14055) and Hochmeisterplatz (10709) – all higher when it comes to the sub-markets of under €6 to €7.50, chiefly consists of distant of which are middle-class neighborhoods with the most affordable and most expensive prop- neighborhoods with no particular charm: the reasonable incomes – require the lowest proerties. Here, the lower tenth of the market has area around Mierendorffplatz (10589) or, even portion of local purchasing power for rent.
Housing market data
Housing cost Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
(40)
12.95
(40)
4.7 (109)
67 (128)
683
(64)
2,873 (48)
23.8 (121)
(50)
14.72
(25)
3.0 (76)
64 (159)
655
(79)
2,606 (89)
25.1
5.41
(70)
10.07
(80)
1.2 (13)
68 (107)
657
(78)
2,629 (85)
25.0
(82)
(160)
6.09
(19)
15.00
(19)
3.55)
83
(13)
966
(7)
3,450 (16)
28.0
(31)
13.3
(17)
6.05
(22)
12.58
(44)
1.9 (42)
65 (145)
726
(50)
2,865 (50)
25.4
(69)
7.1
(70)
5.80
(38)
12.88
(41)
3.1 (78)
76
(31)
796
(30)
2,946 (41)
27.0
(38)
(11)
6.7
(82)
5.91
(34)
16.30
(6)
2.3 (55)
79
(22)
931
(12)
3,348 (17)
27.8
(33)
8.97
(16)
6.2
(96)
6.37
(8)
15.00
(19)
3.2 (81)
76
(31)
882
(17)
3,307 (19)
26.7
(46)
447
7.83
(51)
5.0
(120)
5.58
(55)
12.78
(42)
2.5 (62)
66 (136)
691
(61)
2,922 (42)
23.6 (124)
519
8.08
(33)
6.2
(96)
6.23
(11)
15.78
(10)
4.0 (97)
71
(67)
761
(39)
3,007 (35)
25.3
10713
380
7.50
(59)
6.7
(82)
5.65
(49)
13.95
(33)
2.2 (53)
62 (172)
629
(98)
2,757 (64)
22.8 (144)
10715
558
7.56
(56)
5.1
(115)
5.98
(32)
14.26
(28)
4.2 (101)
68 (107)
693
(60)
2,757 (65)
25.2
(76)
10717
543
8.22
(27)
6.3
(93)
6.01
(29)
15.00
(19)
2.0 (46)
70
(76)
760
(40)
2,798 (53)
27.2
(37)
10719
538
10.00
(6)
2.5
(158)
6.42
(7)
15.06
(17)
3.1 (78)
75
(40)
948
(10)
3,547 (12)
26.7
(45)
Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Postal code
Number of rental offers
10585
527
7.55
(57)
8.4
(54)
5.77
10587
479
7.60
(53)
10.5
(36)
5.65
10589
481
7.03
(78)
6.1
(100)
10623
291
9.00
(13)
2.4
10625
421
8.54
(20)
10627
437
7.84
(49)
10629
538
9.15
10707
521
10709 10711
16_HousingMarketReport_Berlin_March 2012
(77)
(70)
Allocation of postcode areas Due to space restrictions, a more precise positioning of postcode areas (e.g. on the basis of street or place names) is not possible in this HousingCostAtlas. Several postcode areas lie in more than one district. In this HousingCostAtlas, such areas are only listed in the district in which they are primarily located.
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 © Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
24.0 – 25.9 21.0 – 23.9 up to 20.9
Housing market data
Housing cost Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
(4)
15.00
(19)
2.75)
79
(22)
920
(13)
3,092 (30)
29.7
(21)
5.39
(71)
7.15 (172)
– –
65 (145)
558
(151)
2,151 (176)
25.9
(55)
(44)
5.52
(64)
13.51
(35)
3.5 (86)
70
(76)
747
(45)
2,743 (67)
27.2
(35)
5.1
(115)
6.13
(15)
12.37
(46)
2.55)
74
(49)
787
(33)
3,098 (29)
25.4
(68)
(80)
7.2
(66)
5.04
(99)
12.01
(54)
1.65)
84
(10)
811
(28)
3,536 (14)
22.9 (138)
(24)
17.1
(8)
5.39
(72)
14.89
(24)
3.5 (86)
72
(63)
797
(29)
3,154 (25)
25.3
7.29
(68)
9.8
(40)
5.09
(90)
11.60
(60)
3.5 (86)
69 (104)
680
(68)
2,383 (131)
28.5
(28)
851
9.41
(9)
4.3
(129)
6.04
(23)
15.20
(16)
8.5 (133)
79
(22)
952
(9)
3,740
(7)
25.4
(67)
14197
505
7.12
(72)
1.7
(171)
5.59
(54)
12.02
(53)
1.3 (17)
68 (107)
664
(73)
2,557 (98)
26.0
(54)
14199
710
7.81
(52)
9.6
(42)
5.62
(52)
14.04
(29)
5.4 (117)
76
794
(32)
2,956 (40)
26.9
(43)
Bezirk 1)
11,374
8.00
6.4
5.65 14.25 3.0 72 766 2,925 26.2
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Postal code
Number of rental offers
10789
305
9.00
(13)
8.0
(57)
6.61
13627
232
5.94
(147)
1.3
(175)
14050
257
8.02
(38)
9.4
14052
427
8.00
(40)
14055
435
7.01
14057
394
8.43
14059
578
14193
(31)
(71)
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
17_HousingMarketReport_Berlin_March 2012
Friedrichshain-Kreuzberg: High demand leading to prime rents verage (median) asking rents in Friedrichshain-Kreuzberg are the highest in the city at €8.02. No one would have thought this possible just a few years ago. Incomes in the district remain generally low; most apartments are situated either in densely developed imperial neighborhoods with a relatively rough charm or in post-war houses in the east and west, often with small apartments. Even so, there are several reasons why rental levels have risen so dramatically: the district is almost entirely situated in the city center, and essentially serves as an extension of central Berlin. It is particularly attractive to younger people, who are moving to Berlin in large numbers. In addition, the particularly sought-after apartments in the middle to upper segment are hard to come by.
(excluding heating) in spite of its location just a kilometer or so south of the heart of Berlin around the middle of Friedrichstraße and the Gendarmenmarkt. The Prinzenstraße area was almost completely destroyed after the Second World War, and was rebuilt in subsequent decades in a sprawling, architecturally mundane manner. As this area lacks flair, potential residents with high purchasing power ignore it despite its proximity to the city. Around Prinzenstraße and in the east of Kreuzberg around Görlitzer Park, the median in the lowest price segment is still below €5 per square meter. Nevertheless, this district contains pockets where the most affordable ten percent of apartments are advertised for over €6 per square meter on average: the areas around Gneisenaustraße (10961) and the popular and populous Volkspark Friedrichshain (10249), for example, as well as Ostbahnhof (10243).
However, the rise in asking rents was by no means even in 2011. Three areas in eastern and central Kreuzberg saw the highest increases in percentage terms: the area around The highest average asking rents can be Görlitzer Park (10999) posted the city’s sec- found in the Kreuzberg neighborhood ond-highest rise in rents per square meter around Gneisenaustraße with the popular, at 27.8 percent, while the neighboring area lively Bergmannkiez – rich in old buildings around Wrangelstraße (10997) and easily accessible from the city. came in next at 21.1 percent. However, average asking rents in Prinzenstraße Asking rents around Graefestraße Friedrichshain around Ostkreuz has yet to be and Grimmstraße (10967) rose by (10245) and Ostbahnhof are also transformed a still substantial 16.3 percent – well above €8 per square meter. placing the area 11th in Berlin as An extremely high-price segment a whole. On the other hand, this district also has also emerged around Gneisenaustraße: contains neighborhoods with relatively calm the most expensive ten percent of apartprice activity that remain impervious to mar- ments advertised there have average rents ket trends: for example, average rents rose per square meter of €15; in the neighboring by just 4.7 percent on Prinzenstraße (10969) area of Mehringdamm, the figure is €14. and 5.8 percent on Mehringdamm (10965). The significant rental gap in the district reA look at the extremes at the upper and flects the differences in income. Kreuzberglower ends of the market serves to qualify West (10963) near Potsdamer Platz is now Friedrichshain-Kreuzberg’s leading position one of the top 50 postcode areas in Berlin somewhat: in the most expensive market in terms of household purchasing power. segment, the district is in fourth place be- In contrast, the four Friedrichshain neighhind Mitte, Charlottenburg-Wilmersdorf and borhoods of Ostkreuz, Volkspark, OstPankow, while it takes second place in the bahnhof and Samariterstraße (10247) are most affordable segment behind Charlotten- in the bottom 50. However, as rental levburg-Wilmersdorf. In addition, the monthly els in Friedrichshain-Kreuzberg are almost outlay of Friedrichshain-Kreuzberg tenants universally above-average for the city as a is somewhat lower because the properties whole, the housing cost ratio is also high – a advertised are predominantly smaller than phenomenon that is typical of city-center the average for the city as a whole. areas. Around Gneisenaustraße, Volkspark and Mehringdamm, housing cost ratios are Furthermore, this district still provides havens among the 15 highest in Berlin. By contrast, for the less affluent. First on this list is the the housing cost ratio for Prinzenstraße is area around Prinzenstraße (10969), which 178th out of the 189 areas analyzed due to is ranked 130th among the 189 Berlin ar- the low rents and relatively high purchasing eas monitored in terms of housing costs power. 18_HousingMarketReport_Berlin_March 2012
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
A
Housing market data
Housing cost Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
(26)
12.00
(55)
2.0 (46)
65 (145)
661
(76)
2,265 (158)
29.2
(24)
(93)
11.67
(59)
1.3 (17)
66 (136)
682
(65)
2,235 (165)
30.5
(16)
5.76
(42)
10.27
(76)
2.8 (70)
68 (107)
682
(66)
2,307 (149)
29.5
(23)
(26)
6.02
(28)
10.73
(68)
1.4 (21)
69
(93)
695
(58)
2,240 (162)
31.0
(11)
14.1
(15)
6.09
(18)
15.01
(18)
2.6 (67)
68 (107)
758
(41)
2,427 (121)
31.2
(10)
14.5
(12)
5.54
(58)
12.50
(45)
0.45)
85
(9)
864
(20)
2,882 (45)
30.0
(18)
(37)
5.8
(103)
5.54
(59)
14.02
(30)
1.5 (25)
70
(76)
747
(44)
2,427 (122)
30.8
(13)
(45)
16.3
(11)
5.44
(69)
12.05
(51)
1.8 (36)
68 (107)
720
(52)
2,406 (128)
29.9
(19)
6.40
(110)
4.7
(125)
4.82
(135)
10.36
(73)
4.35)
65 (145)
588
(127)
2,870 (49)
20.5 (179)
337
8.00
(40)
21.1
(4)
5.25
(81)
12.07
(50)
2.3 (55)
69
(93)
734
(49)
2,586 (93)
28.4
(29)
450
7.54
(58)
27.8
(2)
4.84
(134)
11.40
(62)
1.7 (30)
75
(40)
764
(38)
2,561 (97)
29.8
(20)
Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Postal code
Number of rental offers
10243
1,077
8.13
(30)
8.0
(57)
6.04
10245
1,367
8.28
(25)
9.6
(42)
5.08
10247
1,455
7.98
(43)
9.2
(46)
10249
1,029
8.03
(36)
11.2
10961
407
8.51
(22)
10963
380
7.59
(54)
10965
353
8.03
10967
354
7.95
10969
402
10997 10999 District 1)
7,611
8.02
11.1
5.49 11.86 2.1 69 716 2,442 29.3
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9 up to 20.9
19_HousingMarketReport_Berlin_March 2012
Lichtenberg: Restrained development – promising future
F
or a long time, discerning potential residents in Berlin tended to overlook Lichtenberg: it was labeled as a former Stasi district full of prefabricated and industrial buildings, too far away for city locations and too central for the outskirts. But word is gradually spreading that the district is home to pleasant old neighborhoods in Stadtpark (10367) in the west, appealing green suburbs like Alt-Hohenschönhausen (13053) in the north-east and even a historical exclusive residential neighborhood in the far south – Karlshorst (10318). However, rent levels and the rental trend remain well below-average for Berlin as a whole. Asking rents are only above the city-wide average in Karlshorst and the Stadtpark area.
premises show that investors see a good future for the district despite the restrained development in certain areas to date. Purchasing power in Alt-Hohenschönhausen is above-average for Berlin. However, the prospects for Friedrichsfelde Nord (10315), Friedrichsfelde Süd (10319) and the Stadtpark area are less promising – they are among the ten areas with the lowest purchasing power in Berlin. This reflects the modest size of the apartments advertised, especially around Siegfriedstraße (10365) and on Fennpfuhl (10369), Berlin’s first large prefabricated housing estate. As a result, these two areas are among the most affordable in Berlin when it comes to overall monthly housing costs in Berlin; this group also includes Falkenberg (13057).
Indeed, the structural rent increase of 32.9 percent in Stadtpark in 2011 was the highest in the whole of Berlin. However, the As regards the housing cost ratio – asking otherwise reliable figures are distorted in this rents as a proportion of purchasing power – case: the large-scale “Lichtenberger Lofts” the new building in Stadtpark is leading to construction project is situated near Stadtpark, the same statistical distortion as described in and the apartments there became available connection with the rental increase. Here, too, for rental in 2011 – naturally at higher rents the Stadtpark area is number one in Berlin at than other properties in the neighborhood. least in notional terms. The low level of local If this special effect is factored out, asking purchasing power is also a factor in the housrents developed at around the district-wide ing cost ratio. After factoring out the new average. This would still be more than in Alt- construction project, however, the picture Hohenschönhausen, around Konrad-Wolf- here is similar to the rest of the district. The Straße (13055) and in Wartenberg (13059), housing cost ratio is often very low, espewhere asking rents rose by around 3 percent. cially in Falkenberg, Alt-Hohenschönhausen, Wartenberg and Malchow (13051). Even the The above-mentioned “Lichtenberger Lofts” front-runners in the district (excluding the and two other projects on former factory Stadtpark area) only have rates of around
Housing market data
25 percent: Rummelsburg (10317) by the lake of the same name, the Friedrichsfelde Süd neighborhood with its low purchasing power, and finally Karlshorst, whose residents have high purchasing power but also (other than the atypical Stadtpark) the highest rents in the district. However, in the segment with the most expensive tenth of apartments advertised, AltHohenschönhausen comes ahead of Rummelsburg with average asking rents of €10.33. It is no coincidence that both areas have bodies of water, even though the Obersee and the Orankesee in Hohenschönhausen are not particularly large. In contrast, the most expensive segment of Wartenberg has one of the most modest rental levels in the whole of Berlin at €6.58. In terms of average rents for the most affordable 10 percent of apartments, this neighborhood and Falkenberg both still come in at less than €4 per square meter.
Housing cost Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
(161)
7.83 (149)
2.3 (55)
62 (172)
497
(181)
2,073 (182)
24.0 (114)
(136)
9.54
(92)
1.9 (42)
68 (127)
559
(150)
2,229 (166)
25.1
(81)
5.50
(65)
9.15 (103)
2.2 (53)
71
(67)
636
(92)
2,588 (92)
24.6
(94)
(102)
5.00
(109)
7.23 (170)
1.8 (36)
63 (165)
505
(176)
2,024 (185)
24.9
(84)
(57)
4.92
(123)
8.78 (121)
1.6 (27)
61 (180)
500
(180)
2,236 (164)
22.4 (148)
32.9
(1)
5.19
(85)
9.52
(93)
3.6 (91)
83
(13)
838
(24)
2,007 (186)
41.7
6.5
(89)
4.96
(118)
9.12 (106)
1.2 (13)
61 (183)
504
(177)
2,221 (167)
22.7 (146)
7.2
(66)
4.47
(160)
7.76 (152)
6.5 (127)
70
(76)
528
(166)
2,420 (125)
21.8 (153)
2.8
(154)
4.56
(152)
10.33
(75)
12.3 (139)
68 (107)
575
(136)
2,778 (60)
20.7 (173)
(124)
3.6
(144)
4.60
(148)
8.28 (132)
2.3 (55)
71
(67)
589
(126)
2,417 (126)
24.4 (101)
4.94
(181)
5.0
(120)
3.83
(178)
7.13 (173)
2.7 (69)
70
(76)
490
(183)
2,368 (134)
20.7 (175)
5.33
(174)
2.6
(156)
3.99
(175)
6.58 (185)
2.3 (55)
68 (107)
502
(179)
2,330 (142)
21.5 (160)
Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Postal code
Number of rental offers
10315
801
5.96
(145)
5.4
(111)
4.44
10317
552
6.23
(127)
4.4
(128)
4.78
10318
542
6.91
(89)
5.8
(103)
10319
392
5.96
(146)
6.0
10365
350
6.15
(133)
8.0
10367
436
8.05
(35)
10369
134
6.29
(118)
13051
302
5.49
(169)
13053
188
6.41
(109)
13055
692
6.25
13057
447
13059
199
Bezirk1)
5,035
6.10
5.0
4.52
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
(1)
8.60 3.0 69 562 2,288 24.6
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
20_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
21_HousingMarketReport_Berlin_March 2012
Marzahn-Hellersdorf: Affordable living at the eastern edge of the city
M
arzahn-Hellersdorf has the lowest asking only postcode area in Berlin where less than rents in the whole of Berlin. The aver- €3.00 per square meter is demanded in this age (median) figures are at the lower end of market segment. Indeed, ancillary costs can the table across all segments, and the rental sometimes exceed rent excluding heating in trend tells a similar story. The rental market this neighborhood. is almost entirely focused on the two complexes of prefabricated apartment buildings of With regard to housing cost ratios – the Marzahn and Hellersdorf in the north of the proportion of asking rents to local purchasdistrict, which were the largest in the country ing power – Hellersdorf-Nord (12627) and in the GDR era. Much has been done here to Kaulsdorf-Nord (12619) in particular are toimprove the residential location in the past 20 wards the bottom of the list in Berlin. Less years: houses have been renovatthan 20 percent of local purchased, while some have been totally Rents as low as ing power is required for the or partially demolished. Dealers apartments advertised in these 2.68 euros per neighborhoods, where belowand service providers have moved square meter in and a park called “Gardens of average purchasing power generally meets the lowest rents in the the World” that was inspired by fairytales and Asian culture, has been created. entire city. Even in the top area in the district, However, none of this makes up for the re- around Mehrower Allee (12687), the ratio is mote location, rough appearance, absence an extremely modest 23.4 percent. Although of lively street culture and the generally poor potential residents from other areas have re(external) reputation of these neighborhoods, cently discovered the district, the trend for even though this is often at odds with the asking rents has been relatively muted so far, views of local residents. as the additional demand has been absorbed by vacancies. Whilst the vacancy rate is fallOf the 12 Berlin postcode areas with the low- ing, it is likely to remain at the top of the list est average asking rents, eight are situated in for Berlin as a whole. This may be why the Marzahn-Hellersdorf, with the bottom three 2.1 percent increase in average rents to €4.79 being Mehrower Allee (12687), Kaulsdorf- per square meter in 2011 was the lowest in Nord (12619) and Hellersdorf-Nord (12627), Berlin. In Kaulsdorf (12621) and Hellersdorfwhich has the lowest average in the city for Nord (12627), asking rents were actually advertised apartments of just €4.48. The down on the previous year. area around Mehrower Allee holds another city-wide record: for the most affordable 10 However, there is more to Marzahn-Hellerspercent of apartments advertised, the aver- dorf than prefabricated buildings. Large parts age rent is €2.68 per square meter. This is the of Kaulsdorf, Biesdorf (12683) and Mahlsdorf
Housing market data
(12623) are developed with single-family and semi-detached houses and, at most, small multi-storey buildings. Post-1990, most of Berlin’s new owner-occupied homes have been built on local wasteland or underused sites – and the area now has one of the largest concentrations of single-family houses in Europe. But there are also rental apartments that belie the common perception of the Plattenbau district. Average asking rents in Kaulsdorf and Mahlsdorf are not only well above-average for the district, but even above those for the whole of Berlin. In Kaulsdorf in particular, the available apartments are relatively large, at an average of 75 square meters. In terms of purchasing power, Kaulsdorf and Mahlsdorf are actually in the top fifth in Berlin, as there are many middleclass families and dual-income households in the areas with single-family houses. Despite higher rents, however, the housing cost ratio is also only just above 20 percent in these neighborhoods.
Housing cost Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Vacancy in %
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Postal code
Number of rental offers
12619
961
4.59
(186)
3.4
(148)
3.71
(180)
6.56 (186)
2.0 (46)
68 (107)
452
(189)
2,277 (154)
19.8 (182)
12621
150
6.79
(91)
– 3.0
(187)
5.53
(62)
9.00 (114)
4.15)
75
(40)
663
(74)
3,134 (27)
21.1 (165)
Basic rent in top market segment 1) in €/m²/month
2)
Apartment size Ø in m²
Housing cost ratio 4) in %
12623
217
7.00
(81)
3.0
(153)
5.50
(65)
9.12 (105)
4.05)
71
(67)
643
(88)
3,116 (28)
20.6 (178)
12627
1,547
4.48
(189)
– 0.5
(182)
3.37
(186)
7.00 (177)
10.2 (137)
70
(76)
457
(188)
2,387 (130)
19.1 (188)
12629
605
4.81
(184)
1.9
(169)
3.46
(184)
7.11 (174)
5.4 (117)
68 (107)
466
(187)
2,193 (174)
21.3 (163)
12679
1,127
5.00
(179)
9.3
(45)
3.78
(179)
6.77 (180)
6.8 (129)
68 (107)
479
(185)
2,264 (159)
21.2 (164)
12681
470
4.97
(180)
3.5
(146)
4.01
(174)
6.66 (181)
3.9 (96)
74
(49)
520
(170)
2,272 (156)
22.9 (142)
12683
326
5.85
(152)
2.3
(164)
4.01
(173)
8.08 (140)
2.9 (73)
68 (107)
537
(164)
2,713 (71)
19.8 (184)
12685
653
5.09
(177)
1.7
(171)
3.61
(182)
6.66 (182)
5.9 (122)
76
(31)
542
(158)
2,510 (108)
21.6 (157)
12687
600
4.50
(188)
5.0
(120)
2.68
(188)
6.58 (184)
7.7 (132)
79
(22)
517
(173)
2,213 (170)
23.4 (129)
12689
1,226
4.81
(183)
2.7
(155)
4.06
(171)
6.41 (188)
7.2 (131)
69
(93)
473
(186)
2,256 (160)
21.0 (169)
Bezirk1)
7,882
4.79
2.1
3.63
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
7.12 6.2 70 479 2,499 19.2
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
22_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
23_HousingMarketReport_Berlin_March 2012
Mitte: Some expensive apartments, lots of cheap ones – and little in between
W
riting about Mitte should really require two separate chapters: one about the historic Mitte plus the neighboring areas to the west near Tiergarten, and one about the rest of Moabit and the whole of Wedding. The district as a whole can be broken down into two distinct parts: one that is relatively expensive and one that is extremely affordable by innercity standards. However, just as Cinderella and the ugly sisters are part of the same story, all of these neighborhoods belong to the same district – and the golden girl is increasingly outshining her less glamorous siblings.
This is demonstrated by the growth in asking rents in 2011. In percentage terms, this development was most pronounced in TiergartenSüd around Potsdamer Platz (10785), MoabitSüdost (10557) and Westhafen (13353), as well as the areas of Wedding around Nauener Platz (13347) and in Gesundbrunnen (13357). In contrast, asking rents stagnated in the western city location of Zoo (10787) as well as the central neighborhoods of Alexanderplatz and Hackescher Markt (10178) – suggesting that landlords may have overestimated the citycenter premium in the past. Even so, some areas in the old Mitte remain front-runners
in terms of rents. As has been the case for many years, Unter den Linden (10117) leads the way, closely followed by the neighboring areas to the north and east around Rosenthaler Platz (10119) and Hackescher Markt/ Alexanderplatz. The most expensive prime segments can also be found in the historical Mitte area, including the up-and-coming area around Chausseestraße (10115): the upper tenth of asking rents average between €17.64 and €18.09 per square meter. Wedding is the polar opposite. In four neighborhoods, average asking rents are below €6: around Gesundbrunnen, Schillerpark (13349), Humboldthain (13355) and Soldiner Straße (13359). Moabit is more expensive, especially close to Berlin Central Station in Moabit Südost, which also includes the popular Hansa district and has average rents of €7.91. The areas with the lowest purchasing power in the district are situated in Wedding and Nord-Moabit around Birkenstraße (10551) and Westhafen. The neighborhood around Schillerpark is ranked 181st in Berlin. The heart of the city around Unter den Linden has the highest purchasing power in the Mitte district and the 11th highest in the city as a whole.
Housing market data Postal code
Number of rental offers
With regard to housing cost ratios, the neighborhoods around Hackescher Markt/Alexanderplatz, Rosenthaler Platz and Unter den Linden lead the way, while the areas around Chausseestraße and Jannowitzbrücke (10179) are also well ahead of the city-wide average. Overall, residents of these areas would have to spend more than 30 percent of their purchasing power to afford an apartment in the local medium price bracket. However, situated not far from here is Humboldthain, an area where only around 20 percent of the low local purchasing power is required for the average advertised apartment.
Housing cost Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
10115
1,259
10.15
(5)
3.1
(151)
6.05
(21)
17.64
(3)
2.5 (62)
71
(67)
866
(19)
2,822 (52)
30.7
(14)
10117
1,361
12.00
(1)
4.2
(131)
6.53
(6)
18.09
(1)
3.3 (84)
92
(2)
1,293
(1)
3,554 (11)
36.4
(4)
10119
912
11.04
(2)
10.1
(38)
7.27
(1)
15.36
(14)
1.8 (36)
76
(39)
989
(4)
2,669 (75)
37.0
(3)
10178
432
11.00
(3)
0.0
(180)
6.14
(14)
17.78
(2)
1.7 (30)
75
(40)
979
(6)
2,556 (99)
38.3
(2)
10179
479
9.08
(12)
11.1
(29)
5.76
(41)
15.50
(13)
1.4 (21)
74
(49)
824
(27)
2,430 (120)
33.9
(8)
10551
648
6.53
(105)
8.1
(56)
5.01
(108)
9.41
(96)
4.2 (101)
65 (158)
592
(125)
2,495 (112)
23.7 (123)
10553
502
6.17
(131)
8.9
(49)
4.49
(158)
9.16 (102)
5.45)
65 (145)
572
(138)
2,450 (119)
23.4 (130)
10555
650
7.06
(74)
11.0
(30)
5.03
(102)
13.02
(39)
4.2 (101)
65 (145)
630
(96)
2,550 (101)
24.7
(88)
10557
611
7.91
(46)
13.8
(16)
4.98
(116)
15.95
(8)
4.3 (105)
62 (172)
654
(80)
2,594 (90)
25.2
(74)
10559
659
6.39
(111)
8.9
(49)
4.91
(124)
9.24 (101)
4.6 (108)
70
(76)
632
(94)
2,545 (102)
24.8
(85)
10785
602
9.23
(10)
24.7
(3)
5.48
(67)
17.09
(4)
5.3 (116)
86
(4)
1,021
(3)
3,570 (10)
28.6
(27)
10787
346
8.08
(32)
0.0
(180)
6.24
(10)
14.93
(23)
1.8 (36)
69
(93)
740
(46)
3,228 (23)
22.9 (139)
13347
1,055
6.09
(137)
11.9
(21)
4.64
(145)
8.24 (133)
3.8 (94)
71
(67)
620
(105)
2,527 (104)
24.5
(96)
13349
408
5.80
(156)
8.6
(53)
4.74
(142)
7.30 (168)
3.1 (78)
64 (159)
540
(162)
2,092 (181)
25.8
(60)
13351
487
6.26
(122)
10.7
(35)
4.77
(137)
8.68 (123)
3.4 (85)
63 (165)
561
(147)
2,142 (177)
26.2
(51)
13353
1,214
6.37
(113)
11.2
(26)
5.00
(109)
8.67 (125)
6.7 (128)
67 (128)
604
(114)
2,330 (141)
25.9
(57)
13355
407
5.66
(162)
10.9
(32)
4.51
(156)
11.70
(58)
2.55)
70
(76)
581
(133)
2,789 (55)
20.8 (172)
13357
1,053
5.98
(144)
11.2
(26)
4.56
(151)
7.73 (153)
5.8 (120)
69
(93)
595
(120)
2,608 (88)
22.8 (143)
13359
942
5.62
(164)
11.0
(30)
4.49
(159)
8.20 (135)
4.25)
65 (145)
537
(165)
2,335 (140)
23.0 (137)
Bezirk 1)
14,027
7.07
13.1
4.84 15.00 3.8 70 659 2,580 25.6
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
24_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
25_HousingMarketReport_Berlin_March 2012
Neukölln: Higher rents in the north, little activity in the south
T
he north of Neukölln is definitely on the up. Students, artists and other creative types first discovered the most northerly tip of the district bordering on Kreuzberg near Maybachufer (12047); now, rents are also rising sharply on Hermannstraße (12049), around Neukölln Town Hall (12043) and on Sonnenallee (12045) in the north. All of the aforementioned areas and the Rollberg quarter (12053), which was still notorious until recently, are in the top 10 percent of Berlin neighborhoods in terms of rent increases.
This development is due to a multitude of factors including the spillover of demand for housing from Kreuzberg, the previously very low rent levels for inner-city areas and certain special factors such as the opening of the former Tempelhof airport as a park. However, most of these areas remain affordable. At €8, only the Maybachufer area has average asking rents that are well above the city-wide average, with Hermannstraße West some distance behind at €7.01. Otherwise, rent levels in Nord-Neukölln are between €6 and €7. The absolute monthly outlay is lower because the available apartments are very small in some areas. Indeed, on Sonnenallee in the north and Hermannstraße in the west, they are almost the tiniest in Berlin, with average apartment sizes of 58 and 59 square meters respectively.
In the south of Neukölln outside the commuter train ring, rents per square meter are lower than in the north almost across the board. In Gropiusstadt with Britz-West (12347), around Johannisthaler Chaussee (12351) and in Buckow-Ost (12353), average asking rents are below €6, while the figure is as low as €5.17 in Sonnenallee (12057) in the south, with its large high-rise complex and a planned highway. Local purchasing power shows an opposite trend to rents. Neukölln has a significant north-south divide in this respect. Rudow-Ost (12357) and Rudow-Süd (12355) are both in the top fifth in Berlin, followed by Buckow-West (12349) and Buckow-Ost. Purchasing power is much lower in Britz in central Neukölln, and it tails off even more towards the city center. Higher rents and lower purchasing power in the north, and the opposite in the south – this means a substantial gap when it comes to housing cost ratios. In the popular Maybachufer neighborhood, the ratio of asking rents to purchasing power is approaching the 30 percent mark; it is also heading in this direction around Neukölln town hall. In contrast, Rudow-Ost at the other end of the district enjoys the lowest housing cost ratio in Berlin. The extreme south of Neukölln is on the verge of an upturn when the nearby Berlin Brandenburg International Airport opens this
Housing market data
summer. Rudow is situated at right angles to the runways and will remain largely unaffected by aircraft noise. There are niches for people on low incomes almost throughout the entire district. In most areas in the south, average asking rents are below €5 in the market segment with the most affordable tenth of apartments. However, some areas in the north have broken this barrier, and others are close to doing so. In the most expensive 10 percent of apartments advertised, the popular Maybachufer area has reached significant asking price levels with an average of €12.22. The neighboring areas around the Town Hall and on Sonnenallee in the north have a high-end sub-market with asking rents in excess of €10.
Housing cost Basic rent in all market segments1) in €/m²/month
Basic rent in bottom market segment 1) in €/m²/month
Vacancy in %
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
(99)
2,328 (144)
27.0
(40)
(152)
2,207 (172)
25.2
(72)
(57)
2,426 (123)
28.9
(25)
570
(142)
2,200 (173)
25.9
(59)
65 (145)
594
(122)
2,481 (114)
23.9 (116)
4.4 (106)
63 (165)
559
(149)
2,329 (143)
24.0 (113)
10.4 (138)
65 (145)
579
(134)
2,373 (133)
24.4
– –
62 (172)
484
(184)
2,492 (113)
19.4 (186)
(98)
9.4 (135)
61 (180)
545
(157)
2,237 (163)
24.4 (102)
7.94 (146)
8.6 (134)
68 (107)
575
(137)
2,453 (117)
23.4 (128)
8.22 (134)
4.35)
67 (128)
585
(129)
2,780 (59)
21.0 (167)
(153)
7.50 (164)
0.75)
69
(93)
584
(131)
2,507 (110)
23.3 (131)
4.34
(165)
6.97 (179)
0.9
(5)
76
(31)
606
(112)
2,617 (87)
23.2 (134)
(115)
5.23
(82)
7.38 (166)
3.75)
74
(49)
663
(75)
3,075 (33)
21.6 (158)
4.0
(134)
4.42
(163)
9.07 (108)
1.25)
70
(76)
618
(106)
3,236 (22)
19.1 (189)
6.4
(91)
4.91
(126)
15.94
2.95)
64 (159)
571
(140)
2,306 (150)
24.8
Change in basic rent across market 1) from 2010 in %
Total housing cost 3) Ø in €/month
Postal code
Number of rental offers
12043
296
6.54
(103)
16.5
(10)
5.00
(109)
10.03
(82)
5.8 (120)
69 (104)
629
12045
262
6.97
(87)
17.8
(7)
4.94
(121)
10.14
(78)
3.2 (81)
58 (188)
557
12047
291
8.00
(40)
14.3
(13)
5.21
(84)
12.22
(48)
2.8 (70)
66 (136)
702
12049
402
7.01
(79)
16.9
(9)
5.09
(91)
9.67
(91)
5.9 (122)
59 (185)
12051
664
6.50
(107)
14.3
(13)
4.91
(125)
8.97 (115)
4.1 (100)
12053
370
6.24
(125)
12.6
(18)
4.88
(130)
8.67 (124)
12055
379
6.27
(120)
9.2
(46)
5.00
(109)
8.93 (117)
12057
126
5.17
(176)
– 0.6
(183)
4.21
(168)
7.25 (169)
12059
350
6.30
(117)
6.2
(96)
4.94
(120)
9.34
12347
811
5.82
(154)
5.6
(108)
4.75
(139)
12349
547
6.09
(139)
2.2
(166)
4.85
(133)
12351
294
5.82
(153)
4.1
(133)
4.55
12353
496
5.33
(172)
2.2
(166)
12355
705
6.32
(114)
5.1
12357
174
6.19
(129)
12359
474
6.28
(119)
Bezirk 1)
6,641
6.24
8.2
4.76
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
Basic rent in top market segment 1) in €/m²/month
(9)
2)
Apartment size Ø in m²
(99)
(86)
9.08 4.3 67 595 2,520 23.6
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
26_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
27_HousingMarketReport_Berlin_March 2012
Pankow: Expensive in Prenzlauer Berg, affordable on the outskirts
A
sking rents in the southern neighbor- the city when it comes to purchasing power. hoods of Prenzlauer Berg near the city These areas remain home to a large number center are now among the most expensive of students and young people. The result is a in Berlin. Around Kollwitzplatz (10435), the high housing cost ratio: tenants face asking average figure is the fourth-highest among rents of around 35 percent of local purchasthe city’s 189 postcodes; the Bötzowviertel ing power. to the east between Prenzlauer Allee (10405) and Volkspark Friedrichshain is ranked sixth, Things are considerably calmer the further and Helmholtzplatz (10437) takes 13th place. north you go in Pankow. The heart of the At 19.7 percent, asking rents in the Prenzlauer district around Alt-Pankow is dominated by Allee postcode area also saw one of the high- mid-range residential locations and price est growth rates in the entire city. Extremely ranges, with asking rents per square meter affordable apartments are basiof between around €6.50 and €7. cally unobtainable in these three At the upper end of the scale are More calm in neighborhoods: average asking the relatively near-city areas of rents in the lower market seg- Pankow without Pankow-Mitte (13187) and Ostthe airport ment are among the 10 highest in seestraße (10409), as well as the Berlin, with Kollwitzplatz taking neighborhoods of Niederschönsecond place for the city as a whole. Mean- hausen (13156) and Rosenthal (13158). The while, a luxury segment is taking shape, with lower end of the market is occupied by areas asking rents for the top 10 percent of proper- such as Heinersdorf (13089) and Weißensee ties coming in at around €15.50 per square around Pistoriusstraße (13086) and Buschallee meter in the Kollwitzplatz and Prenzlauer Allee (13088) – but also the neighborhood around postcode areas and just under €2 less in the Neumannstraße in Süd-Pankow (13189). area around Helmholtzplatz. Rents of around €6 per square meter can be found in Karow/Buch (13125) and Buchholz Despite this, the process of gentrification and (13127). Other than the Olympic Stadium, segregation has not progressed anywhere near the Pankow neighborhoods of Blankenburg as far as some critics claim: Helmholtzplatz and (13129) and Blankenfelde (13159) were the Prenzlauer Allee are in the bottom third for only postcodes in Berlin to have fewer than
Housing market data
50 properties advertised in 2011. Asking rents in Pistoriusstraße in Weißensee, Karow/Buch and Rosenthal rose by less than 5 percent, and the growth rate in Buchholz and Niederschönhausen was only slightly higher. The latter area and Pankow-Mitte are expected to become popular locations once Tegel Airport is out of service and Pankow is no longer under its flight path. This may also see an increase in the housing cost ratio, which is now at around 25 percent in these neighborhoods. The modest figures of between 21 percent and 24 percent seen to the north are likely to remain unchanged. Purchasing power in Blankenburg, Heinersdorf, Niederschönhausen, Karow/Buch and Buchholz is already high, placing downward pressure on the housing cost ratio.
Housing cost Basic rent in top market segment 1) in €/m²/month
Vacancy in %
(9)
15.53
(12)
1.0
(12)
14.00
(31)
6.3 (125)
(56)
10.61
(71)
0.8
(2)
15.61
(11)
1.7 (30)
6.53
(5)
13.43
(36)
(85)
5.91
(35)
11.94
3.5
(146)
5.03
8.7
(52)
4.96
6.5
(89)
5.36
Basic rent in bottom market segment 1) in €/m²/month
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
72
(63)
868
(18)
2,461 (116)
35.3
(5)
68 (107)
722
(51)
2,364 (137)
30.5
(15)
58 (188)
527
(167)
1,874 (188)
28.1
(30)
76
(31)
936
(11)
2,675 (74)
35.0
(6)
2.1 (52)
72
(63)
796
(31)
2,304 (151)
34.5
(7)
(57)
2.0 (46)
66 (136)
665
(72)
2,156 (175)
30.8
(12)
(101)
8.51 (127)
1.3 (17)
63 (165)
542
(159)
2,210 (171)
24.5
(95)
(117)
8.79 (120)
1.0
68 (107)
587
(128)
2,267 (157)
25.9
(58)
(75)
7.57 (160)
– –
70
594
(121)
2,785 (57)
21.3 (162)
Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
1,421
10.00
(6)
19.7
(6)
6.32
720
8.57
(19)
7.1
(70)
6.20
448
7.03
(76)
6.6
(85)
5.58
787
10.27
(4)
8.8
(51)
6.96
10437
1,178
9.00
(13)
7.8
(63)
10439
1,430
8.02
(39)
6.6
13086
952
6.56
(101)
13088
705
6.58
(98)
13089
131
6.44
(108)
13125
1,035
6.07
(140)
3.8
(139)
5.47
(68)
7.93 (147)
4.2 (101)
74
(49)
601
(117)
2,879 (47)
20.9 (171)
13127
609
6.01
(142)
5.4
(111)
5.07
(95)
7.52 (162)
14.65)
77
(28)
621
(104)
3,006 (36)
20.7 (177)
13129
39
7.00
(81)
– 10.1
(189)
5.00
(109)
9.80
(88)
– –
73
(60)
661
(77)
2,724 (69)
24.3 (105)
13156
1,267
6.90
(90)
5.3
(113)
5.53
(63)
9.08 (107)
1.8 (36)
70
(76)
627
(100)
2,714 (70)
23.1 (136)
13158
566
7.00
(81)
4.6
(126)
5.54
(60)
8.86 (119)
1.4 (21)
67 (128)
606
(111)
2,891 (44)
21.0 (170)
13159
5
5.87
(151)
– 3.3
(188)
– – – – – –
75
(40)
594
(124)
2,555 (100)
23.2 (133)
13187
1,090
7.13
(70)
7.6
(64)
5.13
(86)
10.01
(83)
2.0 (46)
67 (128)
615
(107)
2,361 (138)
26.0
(53)
13189
651
6.51
(106)
6.8
(77)
5.26
(80)
10.05
(81)
0.9
61 (180)
522
(168)
2,048 (184)
25.5
(65)
Bezirk 1)
13,034
7.41
7.4
5.39 13.00 2.4 69 653 2,429 26.9
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
Postal code
Number of rental offers
10405 10407 10409 10435
2)
(7) (3)
(7)
(5)
(76)
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
28_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
29_HousingMarketReport_Berlin_March 2012
Reinickendorf: Urban south, green north, affordable apartment blocks
A
ll in all, Reinickendorf is a quiet district on the edge of Berlin with moderate rents that are rising to a below-average extent compared with the city as a whole. Looking more closely, however, the district is home to three distinct areas with extremely different housing markets: the urban south, the green north, and the special case of the Märkisches Viertel/Waidmannslust.
The relatively urban south of the district has many residential buildings from the inter-war and post-war periods and small apartments with asking rents that remain low. At 59 square meters, Borsigwalde (13509) has one of the lowest average apartment sizes in the city. Here and in other neighborhoods in the south such as Eichborndamm (13403), Alt-Reinickendorf (13407) and Residenzstraße (13409), the average asking rent is significantly below €6 in some cases – indeed, the figure for KurtSchumacher-Damm (13405) is as low as €5.33. The only exception in this area is Alt-Wittenau (13437), some of which already falls within the green north of the district, with a figure of €6.22. Asking rents in the lower market segment, which contains the most affordable 10 percent of available properties, still come in at below the €5 mark. There are very few upward outliers in the south of Reinickendorf: even the most expensive tenth of apartments costs just €7 per
square meter around Residenzstraße. Only Alt-Wittenau stands out from the crowd with a figure of €8.22. Purchasing power is modest in all postcodes and, with the exception of Alt-Wittenau, falls within the bottom quarter for Berlin as a whole. At around 22 percent, however, the housing cost ratio is also comparatively low due to the even more affordable rents per square meter and the extremely small size of some apartments. The green northern part of the district is an entirely different matter. Average asking rents in these postcode areas range from €6.66 in the still relatively urban Alt-Tegel (13507) to €7.83 in the quiet Heiligensee (13503). In the latter area and the neighboring Konradshöhe (13505), even apartments in the lowest tenth of the market command rents in excess of €6 per square meter. In the upper market segment, Konradshöhe and Frohnau (13465) have average rents in excess of €10. Residents in northern Reinickendorf enjoy strong purchasing power: Frohnau, Heiligensee and Konradshöhe occupy the second, third and fourth places within Berlin, while Hermsdorf (13467) is ranked 15th. This means that the housing cost ratio is low throughout the north of the district. Average asking rents account for less than 20 percent of household purchasing power in Konradshöhe and slightly more than 20 percent in the other postcode areas. However, residents living so far from central
Housing market data
Berlin are not prepared to pay higher rents. In contrast to the city-wide trend, average asking rents in three areas – Heiligensee, Konradshöhe and Frohnau – fell or stagnated between 2010 and 2011. This shows that landlords on the edge of the city cannot demand the same high rents as in central Berlin even in comparatively wealthy, green neighborhoods. The areas of Märkisches Viertel West (13435) and Ost (13439) and Waidmannslust (13469) are a special case, as rental properties in these neighborhoods are dominated by 1960s apartment buildings. At around €5 per square meter, average asking rents are among the city’s lowest. This is also true for the lower market segment: asking rents for the most affordable 10 percent of apartments come in at less than €4 in Waidmannslust, while the figure for Märkisches Viertel Ost is barely higher than €3.
Housing cost Basic rent in all market segments1) in €/m²/month
Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
(131)
7.56 (161)
2.4 (61)
64 (159)
541
(161)
2,280 (153)
23.7 (122)
(164)
7.10 (175)
– –
86
(4)
685
(63)
2,771 (61)
24.7
4.75
(139)
7.61 (155)
1.7 (30)
63 (165)
521
(169)
2,289 (152)
22.8 (145)
(151)
4.59
(149)
7.00 (177)
1.3 (17)
63 (165)
519
(171)
2,366 (136)
21.9 (151)
(168)
3.41
(185)
7.67 (154)
1.1 (11)
83
(13)
626
(102)
2,655 (79)
23.6 (127)
(77)
4.93
(122)
8.33 (131)
3.25)
69
(93)
611
(108)
2,522 (107)
24.2 (106)
6.3
(93)
3.02
(187)
7.97 (143)
0.4
(1)
82
(18)
641
(89)
2,658 (76)
24.1 (109)
– 2.3
(185)
5.88
(36)
10.00
(84)
3.85)
84
(10)
838
(23)
3,984
(2)
21.0 (166)
(37)
9.45
(94)
5.75)
83
(13)
842
(21)
3,476 (15)
24.2 (107)
(177)
7.83 (150)
– –
84
(10)
644
(85)
2,990 (38)
21.6 (159)
(13)
9.71
(90)
9.05)
85
(6)
890
(16)
3,853
(3)
23.1 (135)
6.04
(24)
10.12
(79)
– –
76
(31)
737
(48)
3,820
(4)
19.3 (187)
5.04
(100)
9.85
(87)
1.9 (42)
68 (107)
632
(95)
2,657 (78)
23.8 (118)
4.91
(128)
8.18 (137)
2.9 (73)
59 (185)
502
(178)
2,220 (168)
22.6 (147)
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Postal code
Number of rental offers
13403
1,238
5.81
(155)
5.1
(115)
4.87
13405
287
5.33
(173)
5.6
(108)
4.37
13407
988
5.63
(163)
7.2
(66)
13409
1,275
5.60
(166)
3.1
13435
257
4.90
(182)
2.1
13437
407
6.22
(128)
6.8
13439
556
5.18
(175)
13465
474
7.34
(65)
13467
413
7.50
(59)
7.1
(70)
5.80
13469
565
5.03
(178)
11.5
(23)
3.94
13503
148
7.83
(50)
0.4
(177)
6.20
13505
138
7.05
(75)
– 0.1
(181)
13507
707
6.66
(94)
4.0
(134)
13509
387
5.87
(150)
5.5
(110)
Bezirk 1)
7,840
5.91
6.4
4.31
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
(87)
8.58 2.7 70 599 2,780 21.5
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
30_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
31_HousingMarketReport_Berlin_March 2012
Spandau: A city in its own right – including on the housing market
H
istorically, Spandau is a separate city that dates back further than Berlin, from which it is separated by water, greenery and industry. On the housing market, too, Spandau lives in its own world with a relatively small-town atmosphere despite a population of almost 220,000. Rents are lower and their development is considerably more muted than in most of the rest of the city. This is due to Spandau’s location right on the edge of the capital, the comparatively modest purchasing power in some parts of the former industrial and military district, and the alternatives provided by locations even further to the west in Brandenburg, particularly Falkensee.
Spandau has two postcode areas with average asking rents of significantly below €5: Falkenhagener Feld (13589) and Heerstraße/ Wilhelmstraße (13593) are among the most affordable neighborhoods in the city in this respect – making them, to a certain extent, the western equivalents of the distant areas in the far east of the city in Marzahn-Hellersdorf district, such as Mehrower Allee and Hellersdorf-Nord. In terms of architecture, too, the Spandau neighborhoods with their 1960s apartment blocks are not substantially different from their slightly younger eastern counterparts. In the lower market segment, rents of significantly less than €4 are often still available in Falkenhagener Feld and around Heerstraße/Wilhelmstraße. When it comes to asking rents, almost all of the postcode areas in Spandau can be found
in the bottom quarter for Berlin as a whole. Only Gatow/Kladow (14089) and Haselhorst (13599) have asking rents in excess of €6 per square meter. In addition to the aforementioned Heerstraße/Wilhelmstraße and Falkenhagener Feld, asking rents are below €5.50 in Staaken (13591), which is home to some large housing estates constructed between the 1950s and the 1970s, and Neustadt (13585). In almost all neighborhoods in Spandau, asking rents in the simple market segment range from €4 to €4.50. In the upper market segment, which consists of the most expensive 10 percent of available apartments, asking rents in most parts of Spandau are relatively modest at between €7 and €8 – the only exception being Gatow/Kladow in the south of the district. The rental trend in the district is largely calm. The sharpest rise in asking rents in 2011 was in the northerly neighborhoods of Neustadt and Hakenfelde – perhaps a precursor to the disappearance of aircraft noise that will accompany the closure of Tegel Airport in June 2012? Rents increased by between three and four percent in most areas; however, Siemensstadt (13629) and Klosterfelde saw even lower growth rates – and in Staaken, in the far west of the district, rents climbed by just 0.2 percent. Purchasing power in the majority of Spandau postcode areas is below-average. However, low rents mean that the housing cost ratio is also moderate throughout the district: around
Housing market data
20 percent in Staaken, Heerstraße and Gatow/ Kladow, around 22 percent in Siemensstadt and Wilhelmstadt Ost, and between 24 percent and 25 percent in Altstadt, Neustadt and Zeppelinstraße. Only Hakenfelde and Haselhorst are slight outliers, with housing cost ratios of almost 27 percent. Gatow/Kladow represents a special case within Spandau. It has a specific population with significantly higher income than the rest of the district, and indeed boasts Berlin’s fifthhighest purchasing power. Although asking rents are almost exactly average for the city as a whole, they are the highest in the district by some distance. Gatow/Kladow has a clearly defined high-end segment with asking rents in excess of €10, no doubt thanks in part to its attractive waterways. As this market is small and hence susceptible to even minor variances, however, average asking rents declined by 2.4 percent in 2011.
Housing cost Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
(162)
7.59 (157)
4.9 (113)
69
(93)
578
(135)
2,523 (106)
22.9 (140)
(169)
7.21 (171)
3.6 (91)
66 (136)
542
(160)
2,245 (161)
24.1 (108)
4.11
(170)
8.00 (142)
6.4 (126)
70
(76)
563
(146)
2,388 (129)
23.6 (126)
(82)
4.65
(144)
7.46 (165)
4.0 (97)
73
(60)
622
(103)
2,308 (148)
26.9
4.8
(124)
3.98
(176)
6.62 (183)
3.85)
75
(40)
555
(154)
2,590 (91)
21.4 (161)
(170)
0.2
(178)
4.54
(155)
7.33 (167)
1.05)
71
(67)
572
(139)
2,901 (43)
19.7 (185)
(187)
7.0
(74)
3.50
(183)
6.53 (187)
5.0 (114)
76
(31)
546
(156)
2,757 (63)
19.8 (183)
5.61
(165)
3.4
(148)
4.51
(157)
7.61 (156)
6.1 (124)
69
(93)
570
(143)
2,620 (86)
21.7 (154)
440
5.75
(158)
3.8
(139)
4.22
(167)
7.58 (159)
1.25)
75
(40)
629
(97)
2,567 (95)
24.5
(97)
13599
424
6.07
(141)
3.8
(139)
4.95
(119)
7.59 (158)
2.9 (73)
74
(49)
644
(86)
2,407 (127)
26.8
(44)
13629
417
5.53
(168)
2.5
(158)
4.01
(172)
7.03 (176)
1.0
68 (107)
556
(153)
2,565 (96)
21.7 (155)
6.61
(97)
– 2.4
(186)
5.53
(61)
10.34
2.55)
83
768
(37)
3,774
20.3 (180)
Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Postal code
Number of rental offers
13581
861
5.73
(160)
1.9
(169)
4.42
13583
801
5.57
(167)
4.0
(134)
4.15
13585
1,526
5.40
(171)
6.6
(85)
13587
1,003
5.88
(149)
6.7
13589
722
4.76
(185)
13591
779
5.42
13593
732
4.55
13595
1,113
13597
(74)
(7)
14089
224
Bezirk 1)
9,042
5.52
4.9
4.06
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
(13)
(5)
(42)
7.52 4.2 72 588 2,633 22.3
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
32_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
33_HousingMarketReport_Berlin_March 2012
Steglitz-Zehlendorf: Green, prosperous – but too far from the center for some
C
34_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9 up to 20.9 © Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
ity location beats green location: this cur- asking rents in the region of €7 per square rent Berlin trend is not benefiting Steglitz- meter. The somewhat remote LichterfeldeZehlendorf, which is a long way from the city Südost (12209) also comes into this price center. Although average rents are traditionally category. At around €7.50 to €8.00, areas above-average for the city, the rise was lower such as Zehlendorf-Südwest (14165) and here recently. Apart from Dahlem (postcode Clayallee Süd (14169) are in a slightly higher area 14195) and Wannsee (14109), no area bracket. In Steglitz, this category includes the in the district features in the most expensive attractive Lichterfelde-West (12205) and the 10 percent of Berlin neighborhoods. Even Schildhornstraße (12163) area, situated in the sought-after, highly scenic areas like Niko- Schloßstraße retail quarter. lassee/Schlachtensee (14129) or ZehlendorfSüdost (14167) are not absolute prime loca- There are still apartments available for people tions in terms of rents. Further to the east are on lower incomes in some areas. Apartments some areas close to or even below the Berlin in the lower market segment have asking rents average, for instance Albrechtstraße/Berg- of less than €5 per square meter in Fichtenberg straße (12169), Lankwitz-Nord (12247) and, and Ostpreußendamm (12207). In Lankwitzin particular, Lankwitz-Süd (12249), where Süd, the figure is as low as €4.29. The areas there are numerous apartment blocks. around Schloßstraße as well as in Stadtpark, Unter den Eichen and around Albrechtstraße/ Because of its many detached houses, Steg- Bergstraße only just break the €5 barrier. There litz-Zehlendorf is widely regarded as a luxury is even a market segment with average rents district. However, the upper market segment below €6 in most parts of Zehlendorf. with the most expensive 10 percent of rented apartments Those who seek The housing cost ratio is above runs counter to this view. Here, the 25 percent mark in around Steglitz-Zehlendorf is only the luxury prefer to half of the areas. At around buy, not rent sixth-placed Berlin district with an 27 percent, the highest ratios are average of €11.08, which is actuattained in Wannsee, Nikolassee/ ally below the city-wide average of €12.04. Schlachtensee and around Schildhornstraße. Dahlem again posts the highest figure in the The latter area is near Rathaus Steglitz and district, but only comes 27th in the city as a Schloßstraße, and has good commuter train whole with €14.29. All other areas in Steglitz- and underground links with the city center. Zehlendorf are even further down the list. This The rule that tenants in more central locais because people who want to live here in the tions also spend a larger proportion on their upper segment usually buy, while people who income on housing than in many outlying still want to rent a particularly fine residential green locations is also true of this district. This property tend to look in the city center. is proved by the areas of Lankwitz-Süd and Lankwitz-Nord on the edge of the city, which Not all Steglitz-Zehlendorf residents live in have much lower housing cost ratios. spacious apartments: average apartment sizes on Albrechtstraße/Bergstraße and in Lank- The percentage increase in asking rents was witz Süd are among the bottom 30 in the city. only higher than the city average in two of the However, the common perception of luxury district’s 17 postcode areas. The area around locations holds true in other parts of the dis- Schildhornstraße (+9.8 percent) occupied the trict in this respect: the biggest rented apart- leading position; at 7.9 percent, asking rents ments in Berlin are available in Dahlem, with in Unter den Eichen increased at the same an average of 98 square meters; Nikolassee/ level as in the center of Berlin. In Dahlem, Schlachtensee is ranked 3rd with 91 square the increase was just 2.4 percent, whilst in meters, whilst Wannsee and Zehlendorf-Mitte Nikolassee/Schlachtensee, it was as little as (14163) come joint 6th with 85 square meters. 1.7 percent. It is no coincidence that these neighborhoods are also among the 10 areas with the highest The results for the district show that Steglitzpurchasing power in Berlin. Zehlendorf has a tasteful suburban character, but is not an outright leader in terms of prosThe geographical center of the district is also perity and rents. Berlin’s city center is attractive in the middle in terms of rents. It includes the in such a way that the rents there often even areas around Fichtenberg (12165), Stadtpark exceed those for a renowned high-earners’ (12167) and Unter den Eichen (12203), with neighborhood like Steglitz-Zehlendorf.
Housing market data
Housing cost Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in bottom market segment 1) in €/m²/month
Vacancy 2) in %
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Postal code
Number of rental offers
12163
698
7.46
(62)
9.8
(40)
5.68
(47)
11.43
(61)
4.7 (109)
71
(67)
717
(53)
2,638 (82)
27.2
(36)
12165
170
7.00
(81)
6.8
(77)
4.90
(129)
9.79
(89)
2.55)
81
(20)
776
(35)
3,015 (34)
25.7
(62)
12167
697
7.00
(81)
7.1
(70)
5.13
(87)
10.00
(84)
2.6 (67)
66 (136)
636
(90)
2,495 (111)
25.5
(64)
12169
384
6.71
(93)
2.4
(160)
5.02
(105)
9.01 (113)
2.8 (70)
63 (171)
585
(130)
2,378 (132)
24.6
(93)
12203
938
7.08
(73)
7.9
(61)
5.04
(98)
10.60
(72)
2.0 (46)
70
(76)
681
(67)
2,881 (46)
23.6 (125)
12205
533
8.06
(34)
6.2
(96)
5.91
(33)
10.61
(70)
3.8 (94)
78
(27)
835
(26)
3,347 (18)
24.9
(83)
12207
790
6.56
(99)
3.7
(142)
4.72
(143)
8.93 (116)
4.4 (106)
75
(40)
690
(62)
2,795 (54)
24.7
(89)
12209
485
7.12
(71)
5.8
(103)
5.70
(44)
9.44
(95)
3.35)
77
(28)
752
(42)
3,287 (20)
22.9 (141)
12247
733
6.72
(92)
7.0
(74)
5.31
(79)
9.01 (112)
1.6 (27)
69
(93)
646
(84)
2,646 (81)
24.4
12249
567
6.11
(134)
7.0
(74)
4.29
(166)
8.08 (139)
5.6 (119)
64 (159)
560
(148)
2,527 (105)
22.2 (150)
14109
357
8.68
(18)
5.2
(114)
5.61
(53)
12.32
(47)
2.35)
85
(6)
962
(8)
3,607
(9)
26.7
(47)
14129
385
8.13
(29)
1.7
(171)
6.01
(30)
14.00
(31)
3.5 (86)
91
(3)
980
(5)
3,627
(8)
27.0
(39)
14163
311
7.87
(48)
6.6
(85)
5.75
(43)
12.68
(43)
4.7 (109)
85
(6)
894
(14)
3,756
(6)
23.8 (120)
14165
450
7.50
(61)
4.0
(134)
5.56
(57)
10.23
(77)
2.5 (62)
69 (104)
694
(59)
2,752 (66)
25.2
(73)
14167
412
8.22
(26)
6.1
(100)
6.02
(27)
11.15
(64)
2.85)
82
(18)
891
(15)
3,540 (13)
25.2
(75)
14169
397
7.58
(55)
7.5
(65)
5.99
(31)
11.13
(65)
9.4 (135)
69
(93)
705
(55)
3,159 (24)
22.3 (149)
14195
457
9.76
(8)
2.4
(160)
6.62
(3)
14.29
(27)
3.0 (76)
98
(1)
1,215
(2)
4,736
25.7
Bezirk 1)
8,764
7.23
6.0
5.15 11.08 3.9 74 730 3,040 24.0
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
Basic rent in top market segment 1) in €/m²/month
Apartment size Ø in m²
(1)
Housing cost ratio 4) in %
(98)
(63)
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
35_HousingMarketReport_Berlin_March 2012
Tempelhof-Schöneberg: Substantial gap between city and suburbs
T
he rental market of Tempelhof-Schöneberg Bayerischer Platz (10779) and in the idyllic also shows how potential Berlin residents Schöneberg area of Friedenau around Breslauprioritize the city center: of the district’s 11 er Platz (12159) and Friedrich-Wilhelm-Platz postcode areas with the highest average (12161). Only Tempelhof-Ost (12099) recorded asking rents, 10 are situated in the relatively a similar level. In contrast, the Tempelhof areas central and urban Schöneberg and only one of Alt-Mariendorf (12107) and Rixdorfer Straße in suburban Tempelhof, namely Lichtenrade- (12109) posted the lowest increases. West at €7.30 (postcode area 12307). However, rents there are High rents closer Household purchasing power considerably lower than in the arshows an opposite trend to this. eas around Rathaus Schöneberg in, more wealth Seven Tempelhof postcode areas further out (10825) at €8.73 and Viktoriaoccupy leading positions in the Luise-Platz (10777) at €8.53. A district here; they are among the look at the bottom part of the table proves the most prosperous 25 percent of all areas in rule. Of the 12 postcode areas with the lowest Berlin. The middle of the table largely consists asking rents, 11 are situated in Tempelhof and of middle-class neighborhoods in Schöneberg, only one in Schöneberg – the “Kiez” around for example around Friedrich-Wilhelm-Platz and Viktoria-Luise-Platz, as well as areas with Bülowbogen (10783). lower purchasing power such as SchönebergRent increases show the same geographical er Insel (10829) and the area around Grazer trend differences. The above-mentioned area Damm (12157). However, the three areas around Rathaus Schöneberg has one of the with the lowest purchasing power in the dishighest increases in asking rents in Berlin at trict are again in Tempelhof: Tempelhof-Ost 20.2 percent. Rents also climbed by more than (12099) and Tempelhof-West (12103) as well 10 percent in Alt-Schöneberg (10823), around as Mariendorf-West (12105).
Housing market data
The areas with the higher housing cost ratios are concentrated in Schöneberg. In two neighborhoods that are popular because of their urban qualities and, in some cases, highly attractive old buildings, the ratio actually exceeds 30 percent: around Viktoria-LuisePlatz and Rathaus Schöneberg. At the lower end of the scale are Lichtenrade-Nordost (12305), Lichtenrade-Südost (12309), AltMarienfelde (12277) and Alt-Mariendorf, with housing cost ratios of 21 percent to 22 percent.
Housing cost Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
Basic rent in top market segment 1) in €/m²/month
Vacancy 2) in %
(39)
16.77
(5)
1.2 (13)
75
(40)
838
(25)
2,767 (62)
30.3
(17)
(25)
14.40
(26)
1.75)
62 (172)
668
(71)
2,578 (94)
25.9
(56)
Basic rent in bottom market segment 1) in €/m²/month
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Postal code
Number of rental offers
10777
480
8.53
(21)
3.7
(142)
5.77
10779
262
8.14
(28)
12.2
(20)
6.04
10781
258
8.09
(31)
7.9
(61)
6.11
(17)
13.09
(38)
1.9 (42)
66 (136)
708
(54)
2,657 (77)
26.6
(48)
10783
238
6.53
(104)
9.2
(46)
5.11
(88)
11.13
(66)
1.5 (25)
74
674
(69)
2,739 (68)
24.6
(92)
10823
194
8.48
(23)
11.6
(22)
6.13
(16)
16.00
(7)
1.7 (30)
61 (183)
673
(70)
2,452 (118)
27.4
(34)
10825
357
8.73
(17)
20.2
(5)
5.70
(45)
15.22
(15)
3.35)
74
(49)
841
(22)
2,630 (84)
32.0
(9)
10827
423
7.40
(64)
6.4
(91)
5.39
(73)
12.04
(52)
4.25)
70
(76)
703
(56)
2,651 (80)
26.5
(49)
Apartment size Ø in m²
(59)
Housing cost ratio 4) in %
10829
288
7.27
(69)
6.3
(93)
5.36
(75)
10.62
(69)
1.45)
62 (179)
610
(109)
2,472 (115)
24.7
(91)
12099
606
6.56
(100)
10.9
(32)
5.00
(109)
9.14 (104)
4.8 (112)
62 (172)
570
(141)
2,275 (155)
25.1
(80)
12101
107
6.65
(95)
4.2
(131)
5.35
(78)
13.33
(37)
7.95)
65 (145)
604
(113)
2,510 (109)
24.1 (112)
12103
598
6.62
(96)
6.8
(77)
5.22
(83)
12.00
(55)
3.2 (81)
65 (145)
602
(115)
2,310 (147)
26.1
(52)
12105
686
6.25
(123)
7.1
(70)
5.03
(103)
8.93 (118)
3.6 (91)
67 (128)
596
(119)
2,312 (146)
25.8
(61)
12107
519
6.30
(116)
5.7
(106)
5.09
(92)
8.45 (128)
1.2 (13)
70
(76)
626
(101)
2,860 (51)
21.9 (152)
12109
435
6.17
(130)
2.6
(156)
5.10
(89)
8.19 (136)
1.8 (36)
64 (159)
564
(144)
2,368 (135)
23.8 (117)
12157
436
7.00
(81)
5.7
(106)
5.05
(97)
12.11
(49)
4.0 (97)
66 (136)
636
(90)
2,530 (103)
25.1
(78)
12159
381
7.90
(47)
12.3
(19)
6.06
(20)
13.71
(34)
2.5 (62)
70
(76)
738
(47)
2,789 (56)
26.5
(50)
12161
490
7.96
(44)
10.1
(38)
5.63
(51)
10.89
(67)
1.6 (27)
73
(60)
774
(36)
2,783 (58)
27.8
(32)
12277
314
6.10
(136)
3.6
(144)
4.75
(141)
8.42 (130)
1.75)
74
(49)
647
(83)
2,994 (37)
21.6 (156)
12279
522
5.92
(148)
6.8
(77)
4.60
(147)
8.01 (141)
1.15)
74
(49)
633
(93)
2,630 (83)
24.1 (110)
12305
425
6.39
(112)
5.0
(120)
5.02
(104)
9.07 (109)
1.7 (30)
72
(63)
650
(81)
3,143 (26)
20.7 (174)
12307
348
7.30
(67)
5.1
(115)
5.01
(106)
9.39
(97)
1.85)
79
(22)
785
(34)
3,263 (21)
24.1 (111)
5.77
(157)
4.3
(129)
3.64
(181)
7.77 (151)
7.0 (130)
77
(28)
648
(82)
3,084 (32)
21.0 (168)
12309
577
Bezirk 1)
8,944
6.84
10.1
4.99 11.74 2.6 70 664 2,677 24.8
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
36_HousingMarketReport_Berlin_March 2012
Housing cost ratio of households in % 36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
up to 20.9
37_HousingMarketReport_Berlin_March 2012
Treptow-Köpenick: Green idylls and airport concerns reptow-Köpenick is Berlin’s largest district in terms of surface area, woodland and water and, at its south-eastern tip, the furthest away from the center. Its housing market also has a special structure: there is no divide between the city and the outskirts here. Instead, the opposite is generally true: the further away from the city center, the higher rents tend to be. The highest averages are to be found in Grünau (12527) and in Rahnsdorf (12589), which is situated in the far north-east of the district. One exception to the geographical price gap is the Treptower Park neighborhood (12435), the only part of the district that is partly inside the Berlin commuter train ring and borders on lively Kreuzberg in the southeast. For other areas in the district, this means that there is no location advantage from being closer to the city center. For example, Niederschöneweide (12439) and Oberschöneweide (12459) are around 10 kilometers away from the city, nearer than most other areas. However, they have the lowest asking rents in the district at around €5.70 per square meter. Both are former industrial areas that are only gradually recovering from the demise of many factories and their unattractive contaminated old buildings.
Overall, asking rents in many parts of the district are below-average for Berlin. In addition to the above-mentioned areas in Schöneweide, average rents of just €6 per square meter are also charged for advertised apartments in Altglienicke (12524). However, this postcode area is situated next to the future Berlin-Brandenburg International Airport and is likely to benefit from it in future, as it is not directly under its flight path. Bohnsdorf (12526), which already has low rents and few development areas to accommodate airport users, will be more affected by noise pollution. Asking rents are also generally low in Köpenick (12555), Adlershof (12489), Wendenschloß (12557) and Johannisthal (12487), at around €6.10 to €6.30 per square meter. In the upper market segment, Grünau stands out with its many beautiful waterways. This part of the district is way out in front in terms of the average of the most affordable 10 percent of apartments. The Treptower Park area, where there are less picturesque yet more central green areas, comes a distant second. It is followed by the three woodland and waterway areas of Friedrichshagen (12587), Rahnsdorf and Wendenschloß as well as Köpenick, with its attractive old town. At the bottom are 38_HousingMarketReport_Berlin_March 2012
the more modest areas of Niederschöneweide and Oberschöneweide. But there are also attractive locations here on the banks of the Spree, where rents are higher than the norm. At the other end of the market, the two Schöneweide areas live up to their reputation as highly affordable locations with asking rents of around €4.60. However, at €4.54, the average is even lower in Wendenschloß, which comprises detached houses, but also modest residential areas to the south of Köpenick’s old town. Tenants can also pay rents of less than €5 per square meter in this segment in Bohnsdorf, Müggelheim (12559) and Köpenick. Housing cost ratio of households in %
Bohnsdorf and Müggelheim are already in the flight path of Schönefeld Airport. Air traffic will increase substantially after it is expanded to form Berlin-Brandenburg International. This will also have a negative effect on current idylls like Rahnsdorf and Friedrichshagen. Airline route planners only revealed the future impact on these areas at the very last minute. Concerns over noise have clearly affected rental trends: asking rents increased only slightly in Friedrichshagen, where demand was still high not long ago; in Bohnsdorf, they actually fell. The front-runners here were Johannisthal (12487) and Treptower Park, which are both quite close to the airport, but are unlikely to be affected by aircraft noise. With regard to purchasing power, the district of Treptow-Köpenick shows a very mixed picture. The situation is weak, especially in Treptow on the border with Neukölln: Johannisthal comes third from bottom in the whole of Berlin, whilst Baumschulenweg (12437) and its surrounding area is right at the foot of the table. The situation is completely different in Rahnsdorf, Altglienicke, Grünau and Bohnsdorf: these neighborhoods have purchasing power rates which, in some cases, are well above the Berlin average. At almost 30 percent, the housing cost ratio, asking rents as a proportion of purchasing power, is the highest in the district in Johannisthal and Treptower Park as a result of the very low purchasing power. The ratio is similarly high on Baumschulenweg, also because of the low purchasing power. In other parts of Treptow-Köpenick, and particularly in the areas of Altglienicke and Bohnsdorf with high purchasing power, the housing cost ratio is much more positive at around 20 percent and 21 percent respectively.
36.0 and over 32.0 – 35.9 28.0 – 31.9 26.0 – 27.9 24.0 – 25.9 21.0 – 23.9 up to 20.9
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
T
Housing market data
Housing cost Basic rent in bottom market segment 1) in €/m²/month
Vacancy 2) in %
Apartment size Ø in m²
Total housing cost 3) Ø in €/month
Purchasing power per household Ø in €/month
Housing cost ratio 4) in %
0.8
(3)
67 (128)
608
(110)
2,125 (180)
28.6
(26)
1.1 (11)
59 (185)
491
(182)
1,821 (189)
27.0
(41)
67 (128)
519
(172)
2,126 (178)
24.4 (100)
Basic rent in all market segments1) in €/m²/month
Change in basic rent across market 1) from 2010 in %
364
7.03
(77)
11.3
(25)
5.35
(77)
9.90
664
6.27
(121)
4.5
(127)
5.00
(109)
8.45 (129)
12439
415
5.69
(161)
8.2
(55)
4.59
(150)
7.93 (148)
0.5
12459
1,317
5.74
(159)
3.9
(138)
4.61
(146)
7.51 (163)
3.5 (86)
65 (145)
507
(175)
2,053 (183)
24.7
(90)
12487
474
6.32
(115)
11.5
(23)
5.06
(96)
8.14 (138)
1.75)
71
594
(123)
1,997 (187)
29.7
(22)
12489
668
6.16
(132)
2.3
(164)
5.01
(107)
7.94 (145)
1.4 (21)
62 (172)
509
(174)
2,125 (179)
24.0 (115)
12524
662
6.00
(143)
3.2
(150)
5.37
(74)
8.69 (122)
2.5 (62)
74
(49)
596
(118)
2,970 (39)
20.1 (181)
12526
97
6.09
(138)
– 0.9
(184)
4.77
(138)
8.53 (126)
1.55)
68 (107)
553
(155)
2,680 (73)
20.7 (176)
12527
221
7.42
(63)
10.2
(37)
5.66
(48)
11.22
(63)
3.75)
68 (107)
644
(87)
2,707 (72)
23.8 (119)
12555
832
6.11
(135)
1.6
(174)
4.91
(126)
9.02 (111)
2.3 (55)
66 (136)
539
(163)
2,216 (169)
24.3 (104)
12557
900
6.23
(126)
8.0
(57)
4.54
(154)
9.05 (110)
5.1 (115)
68 (107)
563
(145)
2,421 (124)
23.3 (132)
12559
305
6.54
(102)
10.8
(34)
4.86
(132)
7.95 (144)
1.0
70
(76)
602
(116)
2,360 (139)
25.5
(66)
12587
362
6.93
(88)
1.1
(176)
5.69
(46)
9.34
(99)
1.75)
65 (145)
584
(132)
2,322 (145)
25.1
(79)
7.33
(66)
2.4
(160)
5.07
(94)
9.33 (100)
– –
80
751
(43)
3,085 (31)
24.3 (103)
Postal code
Number of rental offers
12435 12437
Basic rent in top market segment 1) in €/m²/month
(86)
(2)
(7)
(67)
12589
89
Bezirk 1)
7,370
6.13
4.7
4.84
(21)
Berlin 1)
107,564
6.59
7.8
4.50 12.04 3.3 71 629 2,601 24.2
8.73 2.2 67 548 2,305 23.8
1) median 2) only 139 postal code areas included in ranking 3) includes operating costs (BBU 2009) 2.05 €/m² (East) and 2.64 €/m² (West) 4) total rent as percent of household purchasing power 5) inconclusive due to small Sources: IDN ImmoDaten, Michael Bauer Research (purchasing power), empirica (vacancy), compiled by: CBRE sample size ( ) rank among the 188 postal code areas with rental data
39_HousingMarketReport_Berlin_March 2012
Rental cost map: City in demand, mixed neighborhoods and green areas on the outskirts
B
erlin’s most expensive areas for rented residential properties cut across the city like a curved, dark blue belt, from Dahlem in the south-west via Grunewald, Kurfürstendamm and Tiergarten-Süd, through the city center to Prenzlauer Berg (Table A ). The thickness of the belt in the southwest is a little deceptive, as this part of the city is home to the least densely populated high-price areas. A total of 11,411 apartments were recorded in all postcodes with average asking rents of €9 or above, of which 10,103 were located inside the S-Bahn commuter train ring and only 1,308 outside it.
The trend towards city living is stronger than ever before: this is the clearest finding of the latest HousingMarketReport. And it is not only the well-off who are moving to the city center. This is shown by the next-darkest blue areas, which are concentrated in particular to the southeast of the historical Mitte area and on both sides of Kurfürstendamm. B These areas have average asking rents of between €8 and €9 per square meter. Apartments in this category are also available in less densely populated areas towards the edge of town, such as Charlottenburg-Westend and Zehlendorf. But even here, the city center clearly dominates: 11,169 advertised properties were recorded in inner-city areas, compared with just 2,944 in the outer areas. Only a minority of the inner-city areas are upper middle-class in nature – this is most true in the areas on either side of Kurfürstendamm. Until recently, many areas in this price category were seen as rather humble, but are now being discovered by trendseekers such as artists and creative types, students, or office workers looking for vibrant surroundings at home. C Less well-off people are now having difficulties finding accommodation at past conditions. But purchasing power data shows that many of them still live in these areas. However, the inner city still offers areas for the less well-off, shown on the map in light or mid-blue. D They are often dominated by older buildings that have been renovated using public funds or former social housing with simple, frugal architecture. Other areas suffer from disadvantageous locations or high traffic levels, such as Stephankiez in northern Moabit. It is already clear that there are not enough apartments in central Berlin to meet the requirements of those who wish to live there. As 40_HousingMarketReport_Berlin_March 2012
a result, it is not only less well-off people who are having to expand their horizons; those on medium and high incomes are also moving to Alt-Pankow instead of Prenzlauer Berg, or to Steglitz instead of Charlottenburg. However, this influx is spread over a wide area and is not leading to such pronounced price rises as in more central parts of the city. Just because areas on the map are the same color does not mean that they are uniform in nature. One might be an extremely lively inner-city neighborhood, E another a quiet area with a large number of pensioners, while another might be home to a cross-generational mix. Likewise, even neighborhoods with similar structures can show significant variation when it comes to rents, particularly in the local centers within the various districts. By contrast, asking rents for social housing and estates from the interwar period – which were constructed on what was then the edge of the city, a few kilometers outside the S-Bahn commuter train ring – are considerably more homogeneous. F Now to the greener areas of Berlin – starting with those dominated by particularly desirable detached houses. The area from the west end of the Kurfürstendamm via Zehlendorf to beyond Potsdam represents Europe’s largest continuous stretch of detached houses. G It is primarily home to owner-occupiers, although there are some rental properties, such as in city villas that are divided into apartments. However, expensive neighborhoods can also be found on the northern and (to a lesser extent) south-eastern edges of town. The next category down consists of solid private homes for members of the middle classes. H Renters also live here – some in single-family houses, others in smaller multi-story buildings. The rental gap between these areas is not particularly high.
Examples of locations and rent levels Postal code
Section
District
Basic rent1)
A High-price city locations
10117 Unter den Linden Mitte
12.00
10119 Rosenthaler Platz Mitte
11.04
10178 Hackescher Markt Mitte
11.00
B Middle-class inner city
10435 Kollwitzplatz
Pankow
10629 Sybelstraße
Charl.-Wilmersdorf 9.15
10.27
10777 Viktoria-Luise-Pl.
Tempelhof-Schöneb. 8.53
C Trendy newcomers
10437 Helmholtzplatz
Pankow
10961 Gneisenaustraße
Friedrichsh.-Kreuzb. 8.51
9.00
12047 Maybachufer
Neukölln
8.00
D Affordable inner city
10969 Prinzenstraße
Friedrichsh.-Kreuzb. 6.40
10559 Stephanstraße
Mitte
6.39
12055 Richardplatz
Neukölln
6.27
E Local centers
13187 Pankow-Mitte
Pankow
7.13
13507 Alt-Tegel
Reinickendorf
6.66
13597 Altstadt/Stresow
Spandau
5.75
F Pre-war social housing
12157 Grazer Damm
Tempelhof-Schöneb. 7.00
12359 Buschkrugallee
Neukölln
6.28
13351 Rehberge
Mitte
6.26
G Prime green areas
14195 Dahlem
Steglitz-Zehlendorf 9.76
14193 Grunewald
Charl.-Wilmersdorf 9.41
13465 Frohnau
Reinickendorf
7.34
H High-end green areas
14165 Zehlend.-Südwest Steglitz-Zehlendorf 7.50
On the outskirts, the map again says a lot about the structure of an area. Two colors dominate: a relatively dark blue for rents of between €6 and €8, and light blue for rents of between €4 and €6. The map shows the primary type of development: dark blue for neighborhoods of private homes, occasionally interrupted by smaller complexes of apartment buildings. I The very light blue areas are dominated by apartment blocks constructed between 1960 and 1975 (in the west) or between 1970 and 1990 (in the east). These areas still offer a wide range of apartments for less than €5 per square meter. J
13467 Hermsdorf
Reinickendorf
7.50
12621 Kaulsdorf
Marzahn-Hellersd.
6.79
I Sprawling areas on the outskirts
13503 Heiligensee
Reinickendorf
7.83
12623 Mahlsdorf
Marzahn-Hellersd.
7.00
14089 Gatow/Kladow
Spandau
6.61
J Apartment blocks on the outskirts
13435 Märk. Viertel West Reinickendorf 12689 Ahrensfelde
Marzahn-Hellersd.
13593 Heer-/Wilhelmstr. Spandau 1) median, total market in €/m2/month
4.90 4.81 4.55
Berlin’s exeptional residential areas The biggest apartments
The smallest apartments
Postal code
District
Section
14195
Steglitz-Zehlendorf
Dahlem
10117
Mitte
14129
Steglitz-Zehlendorf
10785 13405
Apartmentsize 1) in m2
Postal code
District
Section
98
10409
Pankow
Ostseestraße
58
Unter den Linden
92
12045
Neukölln
Sonnenallee Nord
58
Nikolassee/Schlach.
91
12049
Neukölln
Hermannstraße West
59
Mitte
Potsdamer Platz
86
12437
Treptow-Köpenick
Baumschulenweg
59
Reinickendorf
Kurt-Schum.-Damm
86
13509
Reinickendorf
Borsigwalde
59
1) average of offers
Apartmentsize 1) in m2
Source: IDN ImmoDaten; compiled by: CBRE
The highest average rents
The lowest average rents
Postal code
District
Section
Basic rent 1) in €/m2/month
Postal code
District
Section
10117
Mitte
10119 10178
Unter den Linden
12.00
12627
Marzahn-Hellersdorf
Hellersdorf-Nord
4.48
Mitte
Rosenthaler Platz
11.04
12687
Marzahn-Hellersdorf
Mehrower Allee
4.50
Mitte
Hackescher Markt
11.00
13593
Spandau
Heerstr./Wilhelmstr.
4.55
10435
Pankow
Kollwitzplatz
10.27
12619
Marzahn-Hellersdorf
Kaulsdorf-Nord
4.59
10115
Mitte
Chauseestraße
10.15
13589
Spandau
Falkenhagener Feld
4.76
1) median of offers
Basic rent 1) in €/m2/month
Source: IDN ImmoDaten; compiled by: CBRE
The highest rent increases
The biggest decline in rent prices
Postal code
District
Section
Change1) from 2010 in %
Postal code
District
Section
Change 1) from 2010 in %
10367
Lichtenberg
Stadtpark
+ 32.9
12621
Marzahn-Hellersdorf
Kaulsdorf
– 3.0
10999
Friedrichshain-Kreuzberg
Görlitzer Park
+ 27.8
14089
Spandau
Gatow/Kladow
– 2.4
10785
Mitte
Potsdamer Platz
+ 24.7
13465
Reinickendorf
Frohnau
– 2.3
10997
Friedrichshain-Kreuzberg
Wrangelstraße
+ 21.1
12526
Treptow-Köpenick
Bohnsdorf
– 0.9
10825
Tempelhof-Schöneberg
Rathaus Schöneberg
+ 20.3
12057
Neukölln
Sonnenallee Süd
– 0.6
1) basic rent, only by more than 50 cases in both years
Source: IDN ImmoDaten; compiled by: CBRE
The lowest vacancy rates
The highest vacancy rates
Postal code
District
Section
13439
Reinickendorf
Märkisches Viertel O.
12439
Treptow-Köpenick
Niederschöneweide
10409
Pankow
12435
Treptow-Köpenick
12353
Neukölln
Vacancy rate 1) in %
Postal code
District
Section
0.4
13053
Lichtenberg
Alt-Hohenschönh.
12.3
0.5
12055
Neukölln
Richardplatz
10.4
Ostseestraße
0.8
12627
Marzahn-Hellersdorf
Hellersdorf-Nord
10.2
Treptower Park
0.8
14169
Steglitz-Zehlendorf
Clayallee Süd
9.4
Buckow-Ost
0.9
12059
Neukölln
Weigandufer
9.4
1) only city districts with sufficient data
Vacancy rate 1) in %
Source: empirica
The highest purchasing power
The lowest purchasing power
Postal code
District
Section
Purchasing power 1) in €
Postal code
District
Section
14195
Steglitz-Zehlendorf
Dahlem
4,736
12437
Treptow-Köpenick
Baumschulenweg
1,821
13465
Reinickendorf
Frohnau
3,984
10409
Pankow
Ostseestraße
1,874
13503
Reinickendorf
Heiligensee
3,853
12487
Treptow-Köpenick
Johannisthal
1,997
13505
Reinickendorf
Konradshöhe
3,820
10367
Lichtenberg
Stadtpark
2,007
14089
Spandau
Gatow/Kladow
3,774
10319
Lichtenberg
Friedrichsfelde Süd
2,024
1) per household and month
Purchasing power 1) in €
Source: Michael Bauer Research
The highest total rent expenditure
The lowest total rent expenditure
Postal code
District
Section
Total cost1 of rent in %
Postal code
District
Section
10367
Lichtenberg
Stadtpark
10178
Mitte
Hackescher Markt
10119
Mitte
10117 10405
41.7
12357
Neukölln
Rudow-Ost
19.1
38.3
12627
Marzahn-Hellerdorf
Hellersdorf-Nord
19.1
Rosenthaler Platz
37.0
13505
Reinickendorf
Konradshöhe
19.3
Mitte
Unter den Linden
36.4
12057
Neukölln
Sonnenallee Süd
19.4
Pankow
Prenzlauer Allee
35.3
13591
Spandau
Staaken
19.
1) average asking rent (including utilities) in relation to purchasing power
Total cost1 of rent in %
Compiled by: CBRE
HousingMarketReport_Berlin_March 2012
Basic rent for apartments in multi-family dwellings in €/m2/month 10.0 and over 9.0 – 9.9 8.0 – 8.9 7.0 – 7.9 6.0 – 6.9 5.0 – 5.9 up to 4.9
HousingMarketReport_Berlin_March 2012
Berlin rent prices 2011 1 Charlottenburg-Wilmersdorf 2 Friedrichshain-Kreuzberg 8
7
3 Lichtenberg 4 Marzahn-Hellersdorf
5
4
2
1 10
3
5 Mitte 6 Neukölln 7 Pankow
11
6
12
8 Reinickendorf 9 Spandau 10 Steglitz-Zehlendorf 11 Tempelhof-Schöneberg 12 Treptow-Köpenick
© Map courtesy of: Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de
9
HousingMarketReport_Berlin_March 2012