IBB Residential Housing Barometer: Berlin´s property market flourishes
Condominiums in Berlin will retain great demand within the next three years. Furthermore the demand is partially going to increase. This information emerges from the recently published IBB Residential Housing Barometer 2014, which the Investitionsbank Berlin (IBB) prepares annually on behalf of Berlin´s Senate Department for Urban Development and Environment. Basis of the Barometer is a survey among Berlin´s residential housing companies, property managers, emitters of property funds and representatives of policies, real estate agents, project developers and appraisers. The experts were questioned about the development of Berlin´s property market concerning the following three years as well as the requirements investors apply towards their condominium.
Constant high growth in demand
In the next few years the overall demand of residential property in Berlin is expected to stay at the current level. Condominiums are supposed to enjoy greater popularity than single-family houses, terraced houses and semi-detached houses. Questioned specialists assume the highest rise in demand for apartments in the district of Charlottenburg-Wilmersdorf, followed by Mitte, Reinickendorf and Treptow-Köpenick. A slight increase in demand is predicted in Friedrichshain-Kreuzberg, Lichtenberg, Marzahn-Hellersdorf and Spandau, whereas the demand in Neukölln, Tempelhof-Schöneberg, Steglitz-Zehlendorf and Pankow is forecasted to remain at a constant high level.
Experts agree that the offer of residential properties in Berlin will not satisfy the current demand of buyers for the time being. Yet, the upswing in construction is supposed to calm the market within the next years. According to the high demand, primarily condominiums are being constructed. Also within the segment of single-family houses, terraced houses and semi-detached houses the demand will increase, yet not as drastic as within the segment of condominiums.
Balcony, lift and low energy consumption most important for buyers
According to specialists potential buyers focus on a balcony or a terrace as well as a modern equipped bathroom. Furthermore the living environment is another key aspect. In contrast to most tenants, many buyers are willing to invest more if low energy consumption or a higher living standard due to for example a lift is given. According to the respondents the barrier free construction of the apartment and a fitted kitchen merely play a minor role in the decision to purchase.
Investment climate in Berlin remains well
The conditions concerning new construction of residential properties in Berlin are ideal and supposed to remain that way according to specialists. The survey states: Charlottenburg-Wilmersdorf, Friedrichshain-Kreuzberg and Mitte provide best requirements for the new construction of condominiums. Also in Lichtenberg, Pankow, Reinickendorf, Spandau and Treptow-Köpenick investors find good construction conditions.