Record Sales On Berlin Property Market Confirmed By Evaluators
The expert committee on land values has submitted preliminary data for 2015. Thus, the trading value for plots and properties in Berlin amounted to EUR 16.8 billion. Evaluators state different reasons and call it “historisches Rekordtief” (historical record high). On the one hand, Berlin is highly sought-after by international investors since prices for properties and land are still low compared to other metropolis, although they are rising as a result of high demand. Brisk population growth as well as sustained low interest rates, have given the turnover generated on Berlin’s property market an extra boost. Prices increased in almost every real estate submarket last year. Construction plots were particularly requested.
Never Before Has Berlin Soil Been So Precious
The purchase of land in Berlin became increasingly expensive in the last year. One reason is the high demand for construction plots. Prices have indeed increased so rapidly that the expert committee on land values had to adjust Berlin standard land values with retrospective effect as from January 1st 2016. So a plot at Pariser Platz, even costs EUR 10,000 per square metre more than it was the case at the beginning of 2015. Meanwhile, investors have to pay EUR 50,000 per square metre for purchasing land in this area. In other locations standard land values have risen by up to 50 %, too. Popular plots in the southwest of Berlin, preferably where detached and semi-detached houses are built as well as undeveloped plots being located within the S-Bahn ring (rapid transit system) and used for multi-storey housing ,are particularly affected by this price growth. Pohlstraße which leads to the newly opened western park of the Gleisdreieck Park is outstandingly suitable for illustrating the leap in Berlin guideline land values, since the value per square metre has risen there from EUR 800 to EUR 1,200. Looking for a top-location, the area at Potsdamer Platz situated south of the Alte Potsdamer Straße which was sold last year, might be given as an example. According to figures revealed by the committee of experts, the square metre price has climbed with upside potential from EUR 5,200 to 6,600 EUR.
Developed Plots Sold For More Than EUR 10 Billion
Prices for land on which multi-storey houses can be built have risen by an average of 30 % , not only in Berlin’s city centre but also in less densely populated locations of the capital. A price hike of 20 % could have been observed for plots being suitable for detached or semi-detached buildings. All in all, a transaction volume of 1,562 sales was realised in this segment and a total of 321.5 hectares of land changed hands for EUR 979 million. Compared to the previous year, this corresponds to an increase of 19 %. The “historische Rekordhoch” (historical record high) of developed plots is also a striking factor, since in 2015 properties of this kind were traded in Berlin for more than EUR 10 billion. For the segment condominium ownership and part- ownership, the expert committee on land values has indicated a sales plus of 31 %, representing a value of EUR 5.26 billion.