Residential real estate worth 5.64 billion euros changed hands in Berlin in 2016. This is the upshot of the latest ACCENTRO Homeownership Report that was presented on 13 September. It suggests that revenues from residential property sales in Berlin almost tripled over the past ten years, up from just 1.97 billion euros in 2006. ACCENTRO assumes that revenues will cross the mark of six billion euros this coming year.
The ACCENTRO Homeownership Report highlights the brisk outperformance of Berlin’s residential real estate market over the past decade. It is perhaps best illustrated by the surge in the number of completions. While just 363 new-build properties were sold in 2006, the sales total was up to 5,608 properties ten years down the road, more than 15 times as many.
Equally unrivalled by any other German metropolis are the price hikes in Berlin. Between 2006 and 2016, revenues per residential property sold went from 96,141 euros up to around 250,215 euros, an increase by 160.26 percent. None of the other cities that were studied showed a comparable price growth.
Declining Number of Transactions, Rising Revenues
The above-average growth in revenue per sale is apparent not just in the ten-year comparison but in the short-term track record as well. Between 2015 and 2016, the growth in revenue per sale equalled 16.73 percent, whereas the 20 biggest German cities averaged a growth rate of merely 8.03 percent. Despite the fast growth over the past years, prices in Berlin remain quite affordable when compared to price levels in other major German cities. The German capital ranks only twelfth in terms of revenue per sale, trailing mid-sized cities like Heidelberg, Mainz or Regensburg.
Lately, however, the number of condominium sales has slowed in Berlin, or so the ACCENTRO Homeownership Report suggests. Specifically, the number of transactions dropped by 7.42 percent between 2015 and 2016. ACCENTRO blames the fact not on a lull in demand, but primarily on short supply. The fact that revenues in 2016 went up by 8.07 percent year on year in spite of the declining number of transactions reflects the persistently keen demand for residential real estate in Berlin.