Berlin is popular among all age groups. Attracted by work, culture and entertainment, many people are drawn to the capital. Young people want to start their career here, older people wish to spend their twilight days in Berlin. Consequently, there is an increasing number of people looking for housing. So more and more of them are deciding to purchase a condominium – and this has been the case for several years now.
The rise in demand has obviously caused prices to increase. Although a difference between big and small apartments can be seen in this context, a significant increase is witnessed for each apartment size. Having paid on average EUR 2,400 per square metre for a 100 square-meter apartment in 2011, it even was EUR 3,900 in 2015. In 2011 an amount of around EUR 1,500 per square metre had been required for a 30 square-meter apartment, four years later it was already EUR 2.700. However, the price level is very broad and depends from the location. So, in Hermsdorf EUR 1,400 per square metre are paid on average, in contrast EUR 8,400 in Grunewald. Existing flats are often more favourable than newly built condominiums, even in top-locations. But there are also attractive offers for new properties in all locations.
The Prices Will Continue To Rise
Despite of this increase, on average 10 % per year since 2009, in many cases the purchase of a condominium is still worth it. There are several reasons for this. First of all, conditions for financing are favourable at present. Moreover, the price level in Berlin is still moderate compared to the average of other attractive major cities. Real estate experts furthermore expect prices to rise continuously, albeit at a slower pace compared with the past. Therefore, a decline in value is not expected – on the contrary. There may be plenty of room for prices to rise in sought-after locations in Schöneberg, Charlottenburg, Zehlendorf, Reinickendorf, Hohenschönhausen and Spandau – depending on the micro-location but as well in other areas. Inter alia, on the outskirts of the city such as Marzahn and Hellersdorf. There, Plattenbau-buildings (prefabricated buildings) have been regaining popularity for a long time. The square metre in these districts costs around EUR 1,300. Here and in other peripheral areas, above all families enjoy the advantages of living in a green area finding nature, calm and relaxation having, however, quick access to the city where gastronomy and entertainment are awaiting them.