I. An affordable market
Berlin has some of the most affordable real estate prices in Europe.
In Berlin, you can find apartments starting from 2,500€/m², almost half the price you would pay in London or Paris.
Real estate purchasing power in big metropolises
In Berlin, the real estate market is thriving. Even though the prices have been going up in the last decade, there has been no speculative bubble and the real estate prices are still low. The price per m² can hardly be beaten by any other European metropolis: the price range starts at 2,500€/m² and reaches up to maximum 5,000€/m² for highly sought-after locations. Inexpensive housing in Berlin attracts many investors or expats who wish to extend their portfolio or to enjoy a high quality of living in a metropolis with an affordable price range.
Low prices attracting investors with various profiles
Investing in Berlin means purchasing a quality apartment at an affordable price. A 50 m² apartment in Berlin costs as much as a 15 m² in Paris.
Berlin’s real estate market appeals to more and more investors who believe in its potential. The German capital city is now one of the most attractive destinations in terms of real estate investment. Berlin ranks first in Pwc’s study “Emerging Trends in Real Estate Europe 2016” as the most promising market in Europe.
Investors have various profiles. Indeed, Berlin’s affordable market is also opened to middle-range budgets. This is a perk you won’t find in many other European capitals.
II. Quality housing
- 9,8 millions of visitors
- 170 museums
- 350 galeries
- 130 theaters and 300 cinemas
Living in Berlin means enjoying big surfaces – you will hardly find apartments under 30 m². Most of the apartments we sell are located in beautiful historical buildings and have kept some of their original architectural features: high ceilings, stucco ornaments, parquet floor…
These historical buildings, called Altbau in German, date back to the end of the 19 th or the beginning of the 20 th century. However, their common areas have been renovated and modernized during the last two decades. Even though they have kept their historical charm, the apartments feature all the modern comfort and almost always have a separate kitchen as well as a private bathroom.
Berlin is the third most visited city in Europe, right behind Paris and London but before Rome, Barcelona and Madrid.
This explosion of tourism is due to Berlin’s quality of life. To name a few factors: food and housing are cheap, there are many green areas and bicycle tracks, cinemas and museums are numerous… Berlin also has a unique architecture and launches new trends in matter of architecture, music and art.
III. A healthy and safe market
- 3 million inhabitants
- 250 000 new arrivals expected before 2030
- 29,000 births
Berlin is the capital city of Germany and is located at the center of the European road network. Germany is not only the richest country of the European Union; it is also the fourth economic power in the world and ranks third in terms of exports.
An economic upswing
Berlin is not only about startups: more and more established companies are moving to Berlin to set their head offices at the center of Europe. These big companies are from various sectors: innovation, high-tech, IT, media… and some of them are famous worldwide, like Sony Music-BMG, Daimler-Benz, Universal, Siemens or IBM. Berlin is also famous for being the birthplace of many young and dynamic startups which have made it into the world of big business, like Zalando or Rocket Internet.
Berlin’s economic potential
Berlin’s real estate market is not like any other in Europe. Whereas other big cities in Europe are going through a real estate crisis, Berlin is on the rise. It is a dynamic metropolis housing the most important German institutions and the seat of many international organizations.
IV. A market with potential
- 170 000 €
- 2 rooms
- 10% rise in 2015
More and more investors from all over the world choose Berlin to invest in real estate. Even if more than 25 years have passed since the fall of the Berlin Wall, West and East Berlin are still different in terms of housing. The prices are not as high in former East Berlin as they traditionally are in the West, although this gap is less and less perceptible.
Even though the prices are going up, they haven’t reached their maximum yet. Indeed, the real estate prices used to be incredibly low in Berlin. After the fall of the Berlin Wall, the real estate market was saturated because of the construction boom after the reunification.
Today, there is a much higher pressure on the market: there is a lack of new housing while many old East Berlin buildings are being demolished. Berlin has also become an attractive city with dynamic demographics. Consequently, the demand has overtaken the supply and is now much higher.
Rent market in Berlin: high demand, low supply, but room for a price increase
The rents can seem incredibly low for a London, Paris or Rome resident. On the average, a lessee will pay 10€/m², against 30€/m² in Paris. The rental yield is about the same, but the rents in Berlin are still undervalued and are expected to increase in the future.
- 16% of Berliners own their apartment
- 2% of empty homes
The demand is on the rise for homes to let and the supply is short: there are 2% of empty homes in Berlin. Mitte, Friedrichshain or Prenzlauer Berg districts are highly sought after neighborhoods for rental investments because the rents are higher than in other districts.