Berlin Residential Market Report 2012

GSW / CBRE have published their 2012 Annual Housing Market Report for Berlin.
Main conclusions
•    Rents: Expensive rents get more expensive and moderate rents remain affordable.
•    Comparison: The Berlin Residential market still offers more for less than other German cities.
•    Scoring: Pankow, Friedrichhain-Kreuzberg and Treptow-Köpenick are in high demand with investors and in advanced positions on the investment cycle.

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GSW / CBRE have publishedtheir 2012 Annual Housing Market Report for Berlin.

Main conclusions
•    Rents: Expensive rents get more expensive and moderaterents remain affordable.
•    Rent Burden: The average share of spendable income to beassigned to rent dropped slightly from 24.4% in 2009 to 24.2%.
•    Comparison: The Berlin Residential market still offers morefor less than other German cities.
•    Scoring: Pankow, Friedrichhain-Kreuzberg andTreptow-Köpenick are in high demand with investors and in advanced positions onthe investment cycle.
•    New building activities mainly in popular locations forhigh value customers.

For new contracts average net rents have risen by 7.8% from € 6.11 in 2010 to €6.59 in 2011. The increase has varied and mostly took place in the higher valuemarket segments to € 12.04 on average.
Least affected were the lower rents which increased by 4.6% to € 4.50 per sqmper month. There is still sufficient supply of affordeable apartments with atightening of the market within the inner S-Bahn ring line.
In more detail:
Friedrichshain-Kreuzberg is in the lead
A change in the lead of the table, in terms of average rents a new distict inin No.1 position: at EUR 8.02 per square meter, Friedrichshain-Kreuzberg isjust ahead of Charlottenburg-Wilmersdorf with at EUR 8.00. This picture isturned around in the lower market segment with the most affordable ten percentof properties,  where Charlottenburg-Wilmersdorf (EUR 5.65) is slightlyhigher than Friedrichshain-Kreuzberg (EUR 5.49).

Diverse development in Mitte district
In absolute terms, the highest asking rents in 2011 were found in Mittedistrict. The new district of Mitte (it was consolidated from the formerdistricts of Mitte, Wedding and Tiergarten on 1.January 2001) was also thedistrict with the largest price gap between the most expensive and the simplestof apartments. The district has a diverse social and geographical structure. Inthe historical Mitte neighborhood and around Potsdamer Platz, asking rents in theupper market segment range from EUR 17 to EUR 18 – the highest in the city.Meanwhile, Moabit and Wedding in the north-west of the district have aconcentration of apartments in the lowest price segment.

High-end segment in Neukölln
In the districts of Pankow and Tempelhof-Schöneberg, asking rents areabove-average for Berlin as a whole with Neukölln close by. This oncestigmatized district now has a high-end segment, with average asking rents ofEUR 9.08 for the most expensive ten percent of apartments.

Moderate price rises in the east and on the edge of town
Lichtenberg, Reinickendorf and Treptow-Köpenick are districts showbelow-average asking rents at around EUR 6.00 per square meter and slow rentalgrowth. Marzahn-Hellersdorf and Spandau are at the end; both still showsignificant vacancy rates, although these are being reduced further. Forexample, apartments in the lower price segment were available inMarzahn-Hellersdorf for an average of EUR 3.63 per square meter per month.

Click this link to downloadthe full Berlin Residential Market Report2012.

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