MARKET PRICE DEVELOPMENT IN BERLIN – HIGH DEMAND CAUSES PRICES TO RISE

Despite the coronavirus crisis and all the associated uncertainties, demand for houses and apartments in Germany is higher than ever before. This is leading to rising sales prices and rents – much to the delight of property owners. In this article, we explain exactly how the market price is developing in the metropolis of Berlin.

Corona increases the desire to own a property

In the last two years, more and more people in Berlin have decided to buy a property. One of the main reasons for this is the persistently low level of interest rates, which enables prospective buyers to obtain relatively manageable financing. At the same time, corona is having a positive effect on the propensity to buy. The reason: people are looking for security and freedom – both aspects that come with owning your own property.

However, the rising demand and scarce supply are also increasing the selling price, which benefits owners: While the price per square meter for a condominium before corona was still around €2,876 in 2018, it now averages €3,800. Compared to 2020, the price rose by 9.5 percent. A similar situation could also be observed for houses: in 2018, the price per square meter was still around €3,593, rising by €500 in 2019 and climbing to €4,784 in 2021.

Above-average increase in rental prices in Berlin

The price increase is also noticeable in rents. In 2021, tenants in Berlin paid around three to four euros more per square meter than in 2019. This is a clear difference to the average price increase across Germany, which has been less than one euro in the last two years.

Victor Investment – Your real estate experts in Berlin

Do you have further questions about market price trends or other real estate concerns? At Victor Investment, we can provide you with comprehensive advice based on our many years of experience in the real estate sector and our background in banking and investment. Regardless of whether you are looking for a property or selling your own home: We are here for you. Feel free to contact us for a non-binding consultation.