The gap
between supply and demand in the Berlin Property Market keeps growing.
According to the Housing Market Report Berlin 2016 published by Berlin Hyp and CBRE
the efforts made by the government introducing new rent caps had little effect
on the rent development.
The report shows that on average the rents offered
rose by 5.1% just below 9.00 Euro/m² (2014: +6.6%). The increase in Mitte was
ca. 7.0% while Friedrischshain-Kreuzberg and Reinickendorf rose by 5.9%. The
lowest increase was in Lichtenberg at 0.9%.
As reasons
for the strong increase two main factors are stated:
1.
1.Steady
increase of the Berlin population through steady influx based on the apparent
attraction Berlin has.
2.
The
number of new projects especially in the central districts. The rent caps don’t
apply to new apartments coming into the market.
Condo
prices rose by 10.1 % on average with the biggest increase in
Steglitz-Zehlendorf (+16.3%).
The Housing Market Report Berlin
2016 is available for download on our website
www.berlin-portfolio.com.
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