Homeownership Berlin: Prices Keep Rising
Condominium prices will keep pushing up in the German capital this year. Then again: If you wish to live inside Berlin's rapid-transit circle line, you should brace yourself for substantially higher prices than you would pay for a condo in a peripheral location. This is what experts predict for 2014.
Berlin: Big Price Differences between Boroughs
Since 2008, purchase prices for condominiums in Berlin have gone up by a total of 35 percent, according to the IVD Federal Investment and Asset Management Association. The citywide price tag for a 90-square-metre apartment is currently 139,500 euros in standard locations, and 184,500 euros in preferred locations. Last year alone, prices rose by around eleven percent.
In 2013, the price range for existing properties in Berlin extended from 2,500 to 7,000 euros per square metre. The priciest locations remain the traditionally bourgeois boroughs of Mitte (7,000 euros / sqm) and Charlottenburg-Wilmersdorf (approx. 5,200 euros / sqm). In Steglitz-Zehlendorf, buyers spend an average of 4,800 euros per square metre, whereas the going rate in Friedrichshain-Kreuzberg is 4,000 euros per square metre. Tempelhof-Schöneberg with 4,300 euros per square metre as well as Neukölln and Lichtenberg with 3,000 euros per square metre each represent the mid-field price bracket. The average square-metre price in Treptow-Köpenick equalled 3,700 euros. The most affordable rates were registered in Reinickendorf (2,700 euros / sqm), Marzahn-Hellersdorf and Spandau (both 2,500 euros / sqm). The price differential clearly shows: Downtown locations are highly coveted by buyers.
Condominiums: Price Rally Continues
The experts of the DIW German Institute for Economic Research are convinced that condominium prices in Berlin will keep rising throughout 2014. Specifically, they assume that prices for new units will increase by 8.7 percent, and prices for pre-used units by 14.1 percent. The price hikes is primarily due to the keen demand generated by the high influx of new residents. In 2013 alone, roughly 40,000 people moved to Berlin. Buying a condominium is the natural thing to do for new arrivals from southern Europe, much more so than for their German contemporaries. But young people are also increasingly looking into homeownership as a retirement scheme. Accordingly, experts see no end to the demand for condominiums in Berlin.