“In terms of rents and purchasing prices there is still a lot of potential in Berlin, particularly due to the ongoing population growth and at the same time moderate construction activity as well as the rising economic strength of the city.”
Median asking rental prices in Berlin increased strongly in 2016 despite a rent cap being introduced in 2015, up 5.6% during the year, the latest figures show.
The growth was led by apartments with rents in this sector up by 15.7% although there are considerable variations depending on location, according to the housing market report from Berlin Hyp and real estate advisor CBRE.
It suggests that a rising population is having an effect on rents. Berlin’s population rose by 48,000 in 2015 and since 2005 it has increased by around 270,000 residents.
But the rent cap has kept rents below other cities in Germany such as Cologne, Hamburg, Frankfurt, Munich and Dusseldorf. In Berlin median asking rents increased to €9 per square meter per month but they are well below the highest in the country in Munich at €15.11.
‘The ongoing development of Berlin is stunning. The dynamics on the market for rental apartments and new construction projects as well as the acceleration of purchasing prices are unique in Germany,’ says Henrik Baumunk, head of residential services at CBRE in Germany.