Property Prices Rising in Every Suburb of Berlin
Prices for residential real estate in Berlin's metro region are going up steadily. The trend is primarily explained by Berlin's lasting appeal as the nation's first city. The high prices inside the city limits have motivated many residents to move to the suburbs just beyond – a trend that has in turn triggered a price growth on Berlin's periphery. As well it might, because there is plenty of price upside in the suburbs yet. This is the upshot of a comprehensive survey that the ImmobilienScout24 real estate portal published after processing and analysing roughly 700,000 listings for rental flats and houses for sale in the state of Brandenburg, which surrounds Berlin on all sides.
Another conclusion drawn by the online portal is that every one of the towns in Berlin's periphery registered a surge in selling prices for single-family detached homes in 2015. The steepest price hike in the metro region was reported from the Berliner Vorstadt district in Potsdam. Asking prices here rose by 11.5 percent between the second quarter of 2015 and first quarter of 2016. Above-average price growth for single-family detached homes was also reported from Hohenstücken, a district of Brandenburg an der Havel, as well as from the districts of Gross-Glienicke and Teltower Vorstadt in Potsdam.
Moreover, ImmobilienScout24 analysed the price performance over the past ten years, and identified Potsdam as the city with the fastest price growth for homes at 58 percent during this period. Prices in Brandenburg an der Havel went up by 45 percent, and those in the County of Märkisch-Oderland by 41 percent. The most affordable homes are available in the town of Niedergörsdorf and in the County of Teltow-Fläming, according to ImmobilienScout24. Inversely, the Berliner Vorstadt district in Potsdam topped the list with premium prices of more 700,000 euros on average.
Rent Upside Potential despite Dynamic Rent Growth
As far as rents go, the highest rates in the state of Brandenburg are again reported from its capital Potsdam. Here, tenants pay an average square-metre rent of eight euros. The most affordable rental flats in the state are available in the remote south east corner of the state, in the county of Spree-Neisse county, where the going rate is 4.80 euros per square metre.
The county of Barnim north-east of Berlin registered the fastest rental growth over the last ten years, as rents increased by 31 percent. But this is still moderate compared to Berlin, and there is considerable rent upside potential when you consider that in some of Berlin's boroughs rents went up by 70 percent over the past decade. Even Marzahn-Hellersdorf, the borough with the slowest rent growth at 34 percent, outperformed the County of Barnim.
Rent Growth in Berlin's Gravy Belt Picked up Momentum in 2015
That being said, the key factor determining rent upside in Brandenburg is a town's proximity to Berlin. That is why Teltow (County of Potsdam-Mittelmark), which straddles Berlin's southern city limits, saw rents perk up by 5 percent in 2015. The growth rate is all the more impressive when you consider that Brandenburg's inflation rate was a low 0.1 percent in 2015. Asking rents in remote areas of Brandenburg, such as those on the border to Saxony in the south or on the border to Poland in the east, have barely budged. In fact, rents in Welzow (County of Spree-Neisse) actually softened by -0.1%, dropping to 4.10 euros per square metre.