Housingmarketreport

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HousingMarketReport

This comprehensive, current survey of the Berlin housing market is in its fifth edition. The HousingMarketReport reveals trends in the rental and investment markets in the city’s 12 districts. It appears in conjunction with the HousingCostAtlas, which contains individual data on rental rates, apartment sizes, purchasing power and housing costs for Berlin’s 190 postcodes. Photo: Peter Sandbiller/imago Peter Photo:

With new HousingCostAtlas

Berlin: Rising Rents and Sluggish Investment

he Berlin housing market is painting a con- that 723 properties were withdrawn from homes need to be replaced every year. If this Ttradictory picture. On the one hand, rents the market due to changes of use, consoli- figure is applied to Berlin, this alone would ne- quoted in 2008 rose markedly in most districts – dation and demolition. However, this figure cessitate the construction of more than 6,000 almost 6 percent on average, citywide. On the does not by any means reflect every property replacement homes per year. other hand, prices quoted for multi-occupancy withdrawn. In many cases, owners are not On the other hand, demand is rising. Berlin’s homes dropped sharply. Investment in rented obligated to request permission population increased by 8,500 in housing in Berlin is showing growing returns, or register a combination or Rents rising, just the first six months of 2008. but becoming increasingly harder to attract, change in use of their property. prices falling: Even excluding immigrants, the evidently due to the shortage of investment Another factor contributing to Increasing returns number of households is rising: capital. Unsteady economic developments are this narrowing of the market is homes are becoming increasingly also making potential buyers hesitate, despite the increasing number of homes kept by non- individualised and the number of older people the fact that the general market conditions in locals and thus not available for long-term living alone is rising. According to a medium- Berlin are favourable. , “Lower prices, higher rental on the Berlin housing market. term scenario put together by the BBU (Fed- returns – the situation is considerably better eration of Housing Companies in Berlin and for those entering the market,” said Thomas A rule of thumb in the housing sector is that Brandenburg), the number of households is Zinnöcker, chairman of the managing board 1 percent of homes are withdrawn from the soon to rise by about 7,500 a year. “Fewer at GSW. “Anyone with the financial means to housing stock every year; in Berlin that would attractive and senior-friendly homes accom- purchase should do so soon.” amount to some 18,000 homes. There is thus panied by a higher demand – in the medium some likelihood that the drop in the number of term, that will automatically produce higher The financial crisis has led to investment prices homes in the city is considerably higher than prices and rents,” said Andrew Groom, Euro- going against the general Berlin housing mar- that of homes currently being built. This is also pean Director, Head of Valuation and Trans- ket trend. However, rental price development indicated by a current study by the Eduard action Advisory at Jones Lang LaSalle. for 2008 mirrors the basic facts: a stagnating, Pestel Institute in Hanover on the housing probably even shrinking supply has recently market in Germany as a whole. The institute The purchasing power of homeseekers in Ber- faced continually growing demand. On the points out that, above all, many buildings con- lin also underwent a positive development supply side, there have continued to be few structed during the post-war era can be seen again in 2008. The number employed rose by new developments. In 2007, 3,718 new homes as impossible to renovate. Architects and civil 2.1 percent between the third quarter of 2007 were built, only about 0.2 percent of hous- engineers work on the assumption that reno- and the same period in 2008, reaching 1.6447 ing stock. By September 2008, the number vation and modernisation is not worthwhile million – one of the highest growth rates in of building permits issued was still somewhat for around 20 percent of homes built in the Germany. The average number of unemployed lower than the same period the year before. ‘50s, ‘60s and ‘70s. For Germany as a whole, dropped in 2008 by 27,300 to 233,700; the The Berlin-Brandenburg statistics office stated the institute calculates that at least 150,000 unemployment rate based on the entire civil-

in cooperation with _HousingMarketReport_Berlin_March 2009 ian workforce fell from 14.2 percent on 31 December 2007 to 12.9 percent at the end GSW: Jones Lang LaSalle: of 2008. In 2009, Berlin will not remain unaf- Leading the Field in Berlin Global Consultants fected by the global recession, but one thing which will lead to a gentler downward turn Owning and managing some 75,000 Jones Lang LaSalle is one of the world’s than in other cities is precisely what has previ- homes, GSW is the leading private hous- leading real estate agents and consultants, ously been considered a structural weakness ing company in Berlin. It was founded in providing strategic, multi-disciplinary serv- 1924 and, through an international consor- ices and solutions for commercial property in Berlin: crisis-sensitive sectors such as high- tium, was privatised in 2004. Since then, owners, users and investors. export industries and industry-related service the company has been standing up to the providers make up only a small share of the challenges of the dynamically changing The company is active in more than 750 local economy compared with elsewhere. On property sector. GSW provides tenants and cities in over 60 countries. In 2008, it the other hand, fields of employment which buyers with attractive housing in carefully registered an annual business volume of are strongly represented in Berlin have not developed surroundings at good condi- more than $2.7 billion. Jones Lang LaSalle provides commercial property owners, been hit as hard by the crisis: public services tions. users and investors with comprehen- and associations, tourism, local service provid- The company is customer-oriented, putting sive, integrated property and investment ers and trades, science and culture. Federal its experience and knowledge of the sector management expertise on local, regional construction-boosting programmes may be into maintaining and raising the value of and international levels. More than 450 particularly effective in Berlin, as available ca- the property. It ensures that tenants feel employees work in the German branches pacity in the construction industry and public- happy in all respects with its reliable serv- of Jones Lang LaSalle, located in Berlin, sector investment requirements are both ex- ices. At the same time, GSW is well aware Düsseldorf, Frankfurt, Hamburg, Munich, tensive. Due to the poor budgetary situation, of its social responsibility for Berlin. Cologne, Stuttgart and Leipzig. many projects have been kept on hold. Although a drop in net GDP and incomes is expected in Berlin for 2009, this should Secondly, the low level of owner occupation Jones Lang LaSalle adds that for some seg- not have a one-to-one effect on the hous- means that fewer households have high fi- ments, the worst might be over. ing market. Here, again, two characteristics nancial obligations. “On our property clocks for the Berlin housing which were previously considered structural market we are not expecting rents quoted to weaknesses will likely have a calming effect. “Housing in Berlin is thus proving to be a stable drop sharply in the near future,” Groom said. Firstly, due to the relatively low level of rents, investment even in the crisis, if you are not “And in the case of multi-occupancy homes, in fewer households than elsewhere require a urgently dependent on proceeds from sales”, many of the city’s districts, the steepest drop high income to be able to pay for their homes. said the GSW’s Zinnöcker. Andrew Groom of in purchase prices could already be over.”

Berlin Barometer District Residents 1) Area in km2 1 Charlottenburg-Wilmersdorf 317,173 64.7 2 Friedrichshain-Kreuzberg 269,294 20.2 8 7 3 Lichtenberg 258,890 52.3 4 Marzahn-Hellersdorf 248,850 61.8 5 Mitte 328,951 39.5 9 5 3 4 6 Neukölln 308,202 44.9 2 1 7 Pankow 366,425 103.1

11 8 Reinickendorf 241,772 89.5 9 10 6 12 Spandau 223,467 91.9 10 Steglitz-Zehlendorf 290,503 102.5 11 Tempelhof-Schöneberg 332,156 53.1 12 Treptow-Köpenick 239,081 168.4 Built-up space Water Forest/park Berlin total 3,424,764 891.9 1) As of: July 2008

District Population density Vacancy 2) Unemployment rate 3) Immigrants 4) Share of immi- Permits for residents/km2 in % in % grants in % 4) new buildings 5) Charlottenburg-Wilmersdorf 4,902 3.7 12.9 55,566 17.9 605 Friedrichshain-Kreuzberg 13,331 3.6 16.7 59,986 22.5 601 Lichtenberg 4,950 3.8 13.3 20,999 8.2 328 Marzahn-Hellersdorf 4,027 11.4 14.4 9,619 4.1 268 Mitte 8,328 4.8 16.4 94,278 28.5 544 Neukölln 6,864 4.8 18.7 68,193 22.6 86 Pankow 3,554 3.6 12.2 26,478 7.8 1,230 Reinickendorf 2,701 3.3 13.6 21,924 9.4 204 Spandau 2,432 7.2 14.9 27,929 12.2 178 Steglitz-Zehlendorf 2,834 2.9 9.6 27,989 10.0 332 Tempelhof-Schöneberg 6,255 3.4 11.5 51,647 15.9 123 Treptow-Köpenick 1,420 3.2 11.5 7,699 3.4 430 Berlin total 3,840 4.5 13.6 472,307 14.0 4,929

2) on the market, end of 2007, Techem Empirica Vacancy Index 3) yearly average 2008 4) As of: mid 2008 5) Jan. to Sept. 2008 Source: Amt für Statistik Berlin-Brandenburg, Federal Employment Office, Techem Empirica

_HousingMarketReport_Berlin_March 2009 Rents: A Sharp Divide

ents quoted in Berlin in 2008 underwent portunities,” saidThomas Zinnöcker, chairman Charlottenburg-Wilmersdorf experienced the Ra sharp division: high-quality housing was of the managing board at GSW. “District de- sharpest rise. This bourgeois district, most of again offered at considerably higher prices, velopment plans and a range to suit the target which is in the city centre, already had the simpler housing was cheaper. Altogether, rents group can create additional demand even in highest rents in earlier years. In 2008, it fur- quoted rose by 5.8 percent between the first more basic living areas.” ther consolidated its lead with the highest and second halves of the year. However, in the increase among all average rents. However, top segment – the most expensive 5 percent Until 1990, only a small share of homes built top- and bottom-segment developments did of homes quoted per district – prices rose dra- were at the top end of the market in West Ber- not differ so greatly, as the social stratifica- matically by 45 percent. At the same time, at lin, and almost none in East Berlin. In the ‘90s, tion and range of housing on offer was more the bottom segment – the cheapest 5 percent the construction of high-quality housing flour- homogeneous. of homes quoted – they dropped by 21.7 per- ished, to a great extent thanks to financial aid cent. “Berlin’s housing market in the form of special, high The district of Mitte comes second place in has a quality problem,” said Strong demand for tax allowances. At the end of terms of the rent level and in terms of rent Andrew Groom, European quality apartments the decade, there was finally increases. Situated between the historical Director, Head of Valuation an excess supply and a fall core of Berlin and the incorporated districts and Transaction Advisory at and central locations in rents. For some years now, of Moabit and Wedding, it is a district with a Jones Lang LaSalle. “There is this has resulted in a drastic sharp social divide. The rise in rents has been an obvious dearth of good housing but at the reduction in new buildings; markedly fewer concentrated in better quality homes in the same time more than enough basic homes.” homes are also being modernised or raised in standard than in the 1990s. However, the This can be explained from the history of the bright economic situation until 2008 brought Berlin housing market. From 1946 until the fall additional demand in this segment, both from HousingMarketReport of the Wall in 1990, the main focus of con- local residents and from managers and profes- Methodology – Rental Offers struction was on the lower-end to mid-level sionals moving into the area. Eventually, this ranges; the overruling aim was supplying the led to a clear lack of supply and finally back The analysis is based on rents quoted for housing in Berlin. In 2008, a total of masses. And homes which, when they were round again to correspondingly higher rents 65,801 quotes were evaluated. Next, the built, may initially have been at the upper being charged – but with a citywide value of average rents were determined. The aver- end of the market, can today instead be cat- 12.50 euros for the upper fifth percentile, rents age rent is the arithmetic mean of the rents egorised in the middle to lower range due to quoted in Berlin are still modest. In Munich, most commonly cited during each month ageing technology, fading looks and wear and this is closer to an average price for all homes, of the observation period. All of the homes tear. Supply is accordingly large in this seg- not the top bracket. The mean value for Berlin, analysed are thus in the middle range of ment. While this brings down the rents quoted, on the other hand, is only about half as much. the market. it does not necessarily mean an increase in de- at just over six euros. Two other segments are listed separately: mand for living space from financially weaker the top and bottom ends of the market, households. In view of the increased economic In 2008, rents quoted also grew apart because covering the cheapest and most expensive uncertainty in 2008, households with lower of the varying quality of locations. In especially 5 percent of rented housing on offer in the to average incomes have especially tended sought-after districts, they continued to rise in district, respectively. In these segments, to be more tentative on the housing market. the broad middle of the market; in less desir- the average rents are also listed. “But with good marketing, there are still op- able districts they stagnated or dropped. Here,

Current rental development Rental price range for new lettings, 2nd half 2008 in €/m2/month Lowest to highest Total market Compared Lower Upper monthly average segment to 1st half market market (total market segment) average rent1) of 2008 segment segment 2) 2) 3) District 4.0 5.0 6.0 7.0 8.0 average rent average rent Trend Charlottenburg-Wilmersdorf 7.55 – 8.10 7.95 7.30 4.50 14.90 j Friedrichshain-Kreuzberg 6.40 – 6.75 6.60 6.30 4.25 10.55 j Lichtenberg 5.40 – 5.85 5.55 5.40 3.75 8.60 k Marzahn-Hellersdorf 4.80 – 5.40 5.00 4.90 5.60 8.20 k Mitte 6.50 – 7.45 7.25 6.70 3.95 17.60 j Neukölln 5.10 – 5.30 5.25 5.30 3.55 8.35 l Pankow 5.90 – 6.60 6.45 6.10 3.75 11.25 j Reinickendorf 5.35 – 5.85 5.55 5.40 3.45 9.25 j Spandau 5.30 – 5.40 5.35 5.40 3.45 8.40 l Steglitz-Zehlendorf 6.65 – 7.10 6.95 6.60 4.30 11.30 j Tempelhof-Schöneberg 5.85 – 6.15 6.05 6.10 4.10 10.25 k Treptow-Köpenick 5.65 – 5.95 5.75 5.80 3.85 9.20 k Berlin average 6.25 – 6.40 6.35 6.00 3.75 12.50 j 1) 100 % of offers 2) In each case, 5 % of the cheapest and most expensive rents quoted 3) 18-month trend total market segment Source: GSW, Jones Lang LaSalle

_HousingMarketReport_Berlin_March 2009 Property Clock: Flats for Rent 2nd half 2008 Treptow-Köpenick Marzahn-Hellersdorf A Clock for the Housing

This diagram shows where, Reinickendorf Spandau Property Market according to Jones Lang The position of a property market in its LaSalle’s assessment, Lichtenberg development cycle can be represented the housing markets are Rental Rents on the property clock. This symbolic clo- positioned within their rent ck was first used by Jones Lang LaSalle Berlin total growth falling price cycle at the end of slowing to provide an overview of various December 2008. markets around the world. The clock is Steglitz- based on the fact that property mar- The local markets can Zehlendorf move around the clock in kets develop in a cyclical manner. On Rental Rents the heels of very high property prices different directions and at Friedrichshain- growth bottoming follows an accelerated decline in values Kreuzberg accelerating out different speeds. The clock Tempelhof- (oversupply, on the clock between 12:00 is a convenient method Schöneberg and 3:00) that eventually slows down as Pankow of comparing the relative it approaches the lowest point (market positions of individual correction, 3:00 - 6:00). After bottoming Charlottenburg- Neukölln city districts in their Wilmersdorf out, prices begin to climb again with rental cycles. increasing speed (market stabilisation, 6:00 - 9:00), slowing down as they Mitte Source: Jones Lang LaSalle approach the highest price level (expansion, 9:00 - 12:00).

The cyclical development of property city centre. This part of the district has the In the districts mentioned so far, rents quoted markets is largely explained by the slow most new, high-quality renovated housing to rose higher during 2008 than the Berlin aver- reaction times to changes in demand. offer. In contrast, in Moabit and Wedding, the age; in the following areas they rose less than For this reason, increases in the supply of new space typically are strongest top-end of the segment is barely represented, average. Reinickendorf and Lichtenberg, two during the oversupply phase. Cons- while the lower end of the segment is strongly contrasting districts, were just below the aver- truction of additional space is weaker in evidence. age: Reinickendorf is a predominantly green in the phase of market correction, and district with a large number of medium-seg- can in extreme cases even be negative Steglitz-Zehlendorf has Berlin’s third-highest ment homes; Lichtenberg, on the other hand, in phases when rent prices are rising. average rents after Charlottenburg-Wilm- is dominated by prefab blocks, old buildings Buildings that were planned in reaction ersdorf and Mitte. In this district in south-west and industrial parks. However, this district, too, to higher prices in the expansion phase Berlin, the top segment was especially sought- has attractive locations with lovely homes – es- are only finished once the market has alreadey moved on to the next phase. after in 2008 and rents quoted increased dra- pecially Karlshorst and Alt-Hohenschönhausen matically. They also rose in the market as a near Obersee and Orankesee lakes. Real estate that is planned, or, as the whole, but in the lowest segment they fell case may be, deliberately not planned, markedly. Prices are also increasing consider- Marzahn-Hellersdorf, Neukölln and Spandau during a phase of low property prices, ably in the middle range in Pankow, in con- are dominated by rental quotes approach- are finished during a phase of higher trast with sharp drops in the lower segment. ing stagnation. In these areas, there are large demand and are not always able to meet that demand. This situation in turn leads This district has highly desirable city-centre districts with new housing developments all to price increases and, as a consequence locations, mainly in the Pren- over the edges of the city; of this, renewed construction of a sur- zlauer Berg neighbourhood As before, there are in the northern part of Neu- plus of supply. around Kollwitzplatz, as well still very low-priced kölln this is accompanied by as attractive suburban sites an inner-city area with social Movements on the property clock can near Pankow’s Bürgerpark market segments and infrastructure problems. go forwards, but also backwards. and Schlosspark areas. On In all three districts, rents the other hand, there is also a lot of basic have sunk particularly noticeably within the housing throughout the district. Altogether, basic segment of the market. In the top seg- the level of rents quoted in Pankow is slightly ment, on the other hand, Neukölln stands of Berlin,” he said. “A home can still be found above the Berlin average. out with a clear lead above the others. Here, to suit every pocket.” Recently, conditions on the best homes are mainly to be found in the the market have even been developing best Kreuzberg-Friedrichshain is also recording simi- areas of Britz and Buckow. Finally, Tempel- for those with relatively low incomes. lar rental trends, but with an entirely different hof-Schöneberg has proven to be a district of spatial and social background. This fashion- extremes: starting out from a relatively high able district is increasingly being discovered level, rents dropped both on average and in MASTHEAD by sophisticated homeseekers – although the the lower and middle market segments. In range of high-quality homes on offer is not yet the prime segment, however, represented by GSW Immobilien GmbH keeping up with this demand. The result is a solid Schöneberg locations such as Bayerischer Charlottenstraße 4, 10969 Berlin rise in rents, especially in top district locations Platz and Friedenau, asking rents rose higher Germany such as Paul-Lincke-Ufer and the Bergmann- than any other place in Berlin. Tel. +49 (0) 30/25 34-13 32 kiez neighbourhood near Kreuzbergpark. On Fax +49 (0) 30/25 34-19 34 the other hand, some inhabitants’ social situ- Thomas Zinnöcker, chairman of the managing Thomas Rücker, Head of Corporate ations remain poor. Apartments which are still board at GSW, also points to a socially inte- Development and Communications in need of renovation, or which are especially grating aspect to these developments. “Cur- [email protected] dark or strongly affected by traffic can evi- rent figures show that altogether, there can be www.gsw.de (also for download of dently only be rented out at reduced prices. no talk of lower earners being squeezed out HousingMarketReport)

_HousingMarketReport_Berlin_March 2009 Purchase Prices for Multi-Occupancy Homes: Investors Remain Cautious

uring 2008, asking prices for multi-oc- and thus also enjoys excellent prospects on favourable population forecasts, meaning that Dcupancy homes in Berlin in part declined. the housing market. Forecasts by the Berlin transactions in the outer north-western district The causes for this are not rooted in the city Senate suggest that the trend, which is already are currently only possible if a reduction is itself, but in the familiar problems of global positive today, will last in the long term: by offered. However, its many green areas and financial markets: investors lack capital, es- 2030, the population of Pankow is predicted good transport infrastructure should draw pecially outside capital. Some investors have to rise by 12.6 percent, which would be more greater attention to the area in the medium been, and are still being, forced to sell in order than 45,000 people. Pankow would be the term. The planned closure of Tegel airport in to balance out deficits or losses from other only Berlin district with more than 400,000 2012 will also improve living quality. fields of business and to fulfil commitments. inhabitants. Among the locations which are For a time, the interest level currently of special interest Mitte, too, is a growing district. Asking price was also higher than during Good opportunities, for investors is the area in developments confirm investors’ current pref- the previous boom. All this Prenzlauer Berg around Koll- erence for central locations: core and average has noticeably weakened but a lack of capital witzplatz, the bourgeois city prices have remained unchanged – a positive the Berlin market. In 2008, locations in Alt-Pankow and exception in the current crisis. However, the turnover of residential and commercial prop- Niederschönhausen, and agreeable suburban moderate average price level conceals the fact erty was roughly 60 percent below that of neighbourhoods in Weißensee and Schönholz- that in Mitte, the investment market is more 2007. Yet Thomas Zinnöcker, chairman of Wilhelmsruh. There’s still plenty of open space strongly divided than in any other district: the the managing board at GSW, put this drop on the city’s outskirts. range extends from prime properties in the into perspective. “The price level and sales historical and revitalised heart of the city to remain considerably higher than before the The district of Friedrichshain-Kreuzberg is old buildings requiring renovation in those latest investment boom,” he said. increasingly becoming a focus for sophisti- parts of Moabit and Wedding which are near The current setback has taken place despite cated, affluent urban homeseekers. Though industrial areas and sometimes have social continued improvement in local conditions for the district is having problems with commer- problems. housing investment in Berlin. The vacancies cial property at the Media Spree project area, of previous years have disappeared to a great the upward trend on the housing market is Tempelhof-Schöneberg is also characterised extent and rents quoted have risen markedly. persisting. Here, too, the Senate is expecting by extreme diversity. This district stretches This means that buyers today can achieve far population growth; however, the predicted from the west of Berlin city centre at KaDeWe higher initial returns than in the past. The increase of 11,000 people by the year 2030 department store to the southern outskirts interest level has also fallen again, meaning is nowhere near as strong as in Pankow. Just in Lichtenrade. Here, the price decline was that with partly externally financed transac- like in Pankow, however, sellers have seen no in total more severe than the Berlin average. tions, the leverage effect for equity capital is reason to lower their asking prices. This is likely to be related to its many large once again positive in many cases. However, housing developments, mainly in the old Tem- transactions of this type are markedly harder Seen over a six-month period, Reinickendorf pelhof district and its subdistricts Mariendorf, to come by due to lending restrictions. has similar average prices to Friedrichshain- Marienfelde and Lichtenrade. Developments Kreuzberg, but with a less favourable devel- of this type were favoured by investors in the The frontrunner, with the highest asking prices opment. Investors are obviously preferring past – but have now fallen out of favour. The of all the districts, is, just as for rents, Charlot- to focus on more central districts with more district of Lichtenberg is also dominated by tenburg-Wilmersdorf. It provides buildings and locations with city-centre qualities, but which are more traditional and well-established than in areas such as Mitte and Prenzlauer Berg, Property Clock: Apartment Buildings for Sale which have only come to the fore since the 2nd half 2008 Mitte Tempelhof-Schöneberg fall of the Wall. The 2008 asking prices also Friedrichshain- declined less in Charlottenburg-Wilmersdorf Kreuzberg Lichtenberg than the Berlin average – and the district is The diagram shows where, characterised by civic solidarity as regards in- according to Jones Lang Treptow- vestment prices. This is also having an effect LaSalle’s assessment, Sales price Sales Köpenick on Steglitz-Zehlendorf, the district with the the housing markets are Pankow growth price second-highest asking prices. Here, in some positioned within their slowing falling Steglitz- months, residential buildings were on sale at purchase price cycle in Zehlendorf the second half of 2008. even higher prices than in Charlottenburg- Neukölln Wilmersdorf. The monthly mean of 2,300 The clock allows for com- Sales price Sales price growth bottoming Berlin total euros per square metre is the highest figure parison of the positions of accelerating out in the city. As regards average prices across individual districts in their the entire period, Steglitz-Zehlendorf is on a own cycle. The positions Charlottenburg- par with Charlottenburg-Wilmersdorf. are not necessarily repre- Wilmersdorf sentative for the invest- Marzahn- One exception among the markets is Pankow. ment market as they relate Hellersdorf Spandau This comes down to the fact that Pankow has exclusively to the most undergone the highest population rise in Berlin common purchase price. Source: Jones Lang LaSalle Reinickendorf

_HousingMarketReport_Berlin_March 2009 Current purchase price trend Purchase price development of apartment buildings, 2nd half 2008 in €/m2 Lowest to highest Compared Average Compared monthly average1) to 1st half purchase price1) to 1st half (total) of 20082) (all months) of 20082) District 0 1,000 2,000 3,000 Charlottenburg-Wilmersdorf 1,200 – 2,000 1,600 – 3,100 1,600 1,900 Friedrichshain-Kreuzberg 900 – 1,300 800 – 1,000 1,000 1,000 Lichtenberg 600 – 1,500 900 – 1,000 1,000 1,000 Marzahn-Hellersdorf 300 – 1,100 800 – 1,300 600 1,100 Mitte 600 – 1,000 800 – 1,000 1,000 1,000 Neukölln 600 – 900 900 – 1,500 800 900 Pankow 700 – 1,500 1,000 – 1,500 1,200 1,100 Reinickendorf 900 – 1,200 1,100 – 1,600 1,000 1,300 Spandau 600 – 1,600 1,000 – 1,200 900 1,100 Steglitz-Zehlendorf 1,200 – 2,300 1,300 – 2,500 1,600 1,700 Tempelhof-Schöneberg 900 – 1,200 1,100 – 1,400 1,000 1,300 Treptow-Köpenick 800 – 1,100 1,000 – 1,400 900 1,200 Berlin average 900 – 1,100 1,100 – 1,300 1,000 1,200

1) 100 % of offers 2) Database HousingMarketReport October 2008 Source: GSW, Jones Lang LaSalle

large complexes, although an even greater and recreation areas. For this district, too, the percentage of them are owned by municipal Senate forecasts more than 12,000 additional HousingMarketReport property companies. Like those of Friedrich- inhabitants by 2030. Methodology – Prices Quoted shain-Kreuzberg, Mitte and Reinickendorf, Lichtenberg’s average prices are on par with In terms of average prices, Neukölln and Mar- The table is based on monthly core pur- the Berlin figure of 1,000 euros per square zahn-Hellersdorf are at the lower end of the chase prices for multi-occupancy homes. Average prices (arithmetic mean) and core metre. Berlin scale. Neukölln continues to have an im- prices were determined on the basis of age problem, although the situation in many approximately 4,300 quotes in the period Four other districts have asking prices which parts of the district is actually better than that from January 2008 to December 2008. are well below the average. Spandau and envisaged by the outside world. The problems Treptow-Köpenick are still relatively close to are mainly concentrated in the north, which the Berlin mean value. Even in recent times, is dominated by old buildings. Britz, Buckow Berlin’s western outskirts enjoyed a relatively and Rudow, on the other hand, are greener case before, Berlin still has the lowest rental calm investment market, which is why the and more modern suburban areas, which, like and purchase prices of any major European collapse has not been as severe here as else- Treptow-Köpenick, will profit from the major city and a particularly large potential for where. In the south-east of the city, on the airport to be built. Marzahn-Hellersdorf, on development,”said Andrew Groom, head of other hand, Treptow-Köpen- the other hand, stands the Valuation Advisory team at Jones Lang ick underwent a sharper de- 250,000 moves out with by far the high- LaSalle. Rental price development is already cline. Rather like Reinicken- est vacancy rate in Berlin. showing signs of shortages in higher-stand- dorf at the other end of the per year keep the Its outlying position and ard homes and good locations. The situa- city, the district suffers from market lively rough prefab block ar- tion is favourable for investors intending to the low value placed on Ber- chitecture means there raise yields by actively working to improve lin’s outskirts. Here, too, the problem is more are no signs of improvement as yet. Even if existing stocks. The mobility of the people economic than structural, as in the long term, investment activity in the city as a whole are of Berlin contributes to this: every year, just the district will benefit from its proximity to revitalised, Marzahn-Hellersdorf would only under 250,000 households move – about one the major Berlin-Brandenburg International moderately benefit. in seven. And every move offers owners the airport, from development projects such as the Revitalisation is to be expected for the city chance to renovate or improve conditions with Adlershof science park and from its greenery as a whole in the medium term. “As was the a new rental contract.

Berlin: Moderate Incomes – Particulary Low Housing Costs City comparison, average values 2008

Apartment size 1) Basic rent 2) Housing cost (basic rent) Purchase power per Basic rent in % of house- Total rent 3) in % of in m2 in €/m2/month in €/month household in €/month hold purchase power household purchase power Frankfurt 76.3 10.85 828 3,170 26.1 32.1 Munich 73.4 12.95 951 3,801 25.0 29.8 Hamburg 70.8 9.25 655 3,050 21.5 27.3 Berlin 75.9 6.27 476 2,502 19.0 26.6 Cologne 71.8 8.40 603 3,203 18.8 24.4

1) Apartments quoted 2) Rent asked 2nd half 2008 3) Basic rent plus 2,50 €/m2 service costs Source: GSW, Jones Lang LaSalle, GfK GeoMarketing

_HousingMarketReport_Berlin_March 2009 HousingCostAtlas

For the second Berlin HousingCostAtlas, exactly 65,801 housing quotes were evaluated, assigned to one of the city’s 190 subsections and correlated to the relevant purchasing power. The result is a precise analysis of all city districts in terms of housing size and how much people are prepared to pay in rent. This all provides an insight into the attractiveness of the districts.

HousingCostAtlas Methodology

For the atlas, 65,801 quotes evaluated in 2008 with data on size and rent were allocated to certain postcode areas. To

Photo: Susan Serttas/Shotshop.com Susan Photo: determine the rent including service costs, a set price for service costs was added to the net cost recorded for rent only. This was based on data on overhead costs from the GEWOS research institute in Ham- burg, indicated as €2.50 per square metre on average. For each postcode, the data Over 65,000 recorded was used to determine the aver- housing quotes age size of the homes, the average net rent before service costs and the average actual analysed rent paid (including service costs). GfK (Society for Consumer Research) GeoMar- keting annually forecasts average purchasing power per resident and household, according to postcode and street section. At the postcode level, average household housing costs can be determined using the Detailed City Structures following formula: hat purchasing power and living costs Central locations with high rental cost average actual average do people have in each district? Do In the areas of Kreuzberg, Friedrichshain, rent paid W = relative average residents spend a large or small proportion Prenzlauer Berg and Schöneberg, purchasing housing costs of their money on rent? The second Berlin power is often relatively low while the asking purchasing power housing cost atlas, created by GSW and Jones rent is often well above the Berlin average. Vacancy rates are calculated based on the Lang LaSalle, answers these questions for all This is not necessarily a sign that traditional Techem Empirica Index. Property research 190 postcode areas in the city – each with an types of residents are being squeezed out, or institute Empirica and the Techem compa- average of 18,000 inhabitants. This approach that a change in status is occurring. n Exam- ny, which records power and water use in allows for a detailed analysis of individual dis- ples: postcodes 10119, 10178, (Mitte), 10405, peoples’ homes, define an “active market vacancy rate,” where houses and flats are tricts, the structure of quotes on their housing 10435 (Pankow), 10961, 10963 (Friedrich- only categorised as vacant if no rent is cur- markets and development trends. In places shain-Kreuzberg) rently being paid for them. The population where housing quotes are expensive com- for this index is the housing managed by pared with local incomes, a change in social Havens for the less wealthy Techem, especially professionally-man- structure may be occurring. However, for a It’s rare to find low-cost housing in central aged flats in multi-storey blocks. It does trend of this kind to develop, the right kind districts dating from Imperial times; instead, not, however, cover housing in detached of housing must be available. The findings it’s now concentrated in two types of areas: or dual-occupancy buildings and very basic flats without central heating or hot of the housing cost atlas allow us to pick out developments from the inter- and post-war water. For most owners and investors, only various notable types of area – some examples periods, i.e. north-west Wedding, south-east these vacancies are considered to be “on are listed below. Reinickendorf or Neukölln south of the S-Bahn the active market,” as detached buildings railway, as well as in large-scale developments and basic flats do not compete with their City centre areas with high rent from the 1960s to 1980s in both east and properties. The highest advertised rents in Berlin are west. n Examples: 13349, 13351 (Mitte), around the two boulevards Unter den Linden 12057, 12359 (Neukölln), 13439 (Reinick- and Kurfürstendamm. However, the purchas- endorf), 12687 (Marzahn-Hellersdorf) ing power of local residents is not especially and Rudow in the south and the districts sand- high. In a few years, these districts may very Developments for careful spenders wiched between Siemensstadt and Spandau well only be accessible to affluent residents – The lowest relative housing costs in relation to in the west. Here, the middle classes tend with the exception of poor-quality homes, purchasing power are not in the “millionaire” to have the area to themselves, as although e.g. dark ground-floor flats or homes on noisy villa neighbourhoods in south-west Berlin, but rented housing is relatively cheap, there is also streets. in fairly unremarkable middle-class neighbour- often quite a limited supply. n Examples: postcodes 10117 (Mitte), 10623, hoods in various outlying districts: Wittenau n Examples: 12357 (Neuköln), 13467 (Rein- 10629, 10719 (Charlottenburg-Wilmersdorf), and Waidmannslust in the north, Kaulsdorf ickendorf), 12683 (Marzahn-Hellersdorf), 10789 (Schöneberg) and Mahlsdorf in the east, parts of Buckow 12277 (Tempelhof-Schöneberg)

in cooperation with _HousingMarketReport_Berlin_March 2009 Centre and North: Thriving Districts and Quiet Corners

Mitte Pankow Friedrichshain-Kreuzberg There is no other place in Berlin where such It is no coincidence that the two areas with Measured in terms of local purchasing power, spacious, expensive homes can be found the highest rent relative to purchasing power homes on offer are expensive, especially in than around the boulevard Unter den Linden (postcodes 10405, 10435) are Prenzlauer Berg a wide band to the left and right of Strese- (postcode: 10117). Here, almost all the homes in the south-west of the district. Here, rent mannstraße and Urbanstraße (postcodes quoted are in the high price range. Many of asked per square metre is by far the highest 10961, 10963 and 10967). In the area as a these homes were built after 1990 based on in the district; in this respect, the area around whole, the relative amount spent on rent is a city regulation calling for central commer- Kollwitzplatz comes at the top of the Berlin among the 20 highest in Berlin. The homes, cial buildings to include 20 percent residential ranking. At the same time, however, purchas- mainly dating back to Imperial times, are housing. The average asking price is more than ing power here is still not high. People moving relatively large; quoted rent, without service twice as high as the average for within the neighbourhood have costs, is about 6.50 euros per square metre. the city as a whole, yet there are Sought-after to spend, on average, more This is above the Berlin average. On the other also older homes where people than half of their purchasing hand, purchasing power in these areas is at whose incomes are not especially locations around power on their new home. Yet one of the lowest levels in the entire city. In high live. If one compares the the city centre there are still many buildings the nearby area of Prinzenstraße (10969), it rent quoted for vacant homes which have not been extrava- even drops down to the lowest level in the city, with incomes, this produces another peak fig- gantly modernised, where even those with a although rent here is also lower and homes ure for Berlin: a local household would have moderate income can live within their means. are smaller. These modest levels of income to spend almost two thirds of its purchasing There is a similar trend, although not quite as can be explained by several factors: Kreuzberg power on rent and service and maintenance extreme, in the neighbourhoods to the north is home to especially high numbers of both costs if moving into an average new home and east around Helmholtzplatz and Arnim- young and old people, unemployed people in the area. platz (10437, 10439) and Bötzow (10407). and foreign nationals. The homes available here are considerably A strikingly high rent per square metre is also smaller, but purchasing power is also notice- Although Paul-Lincke-Ufer and Berg- quoted to the east in Alexanderplatz (10179) ably lower. mannstraße, for example, are also character- and the north around Rosenthaler Platz One oddity has made it into the top range ised by their high population of middle-class (10119). Here, purchasing power is again well for relative housing costs in the district: the academics, they tend to be artists and intellec- below that of Unter den Linden, meaning that little village of Blankenfelde in the far north tuals without especially high purchasing power. these areas come in second and third place (13159). There are not very many rented One phenomenon often claimed to occur in in the Mitte district in terms of relative hous- homes there, but the ones which are there are the area, yet which does not take place to ing costs. In fourth place comes the 10785 markedly large – making them the most ex- any great extent, is the pricing out of poorer area located between Tiergarten, Potsdamer pensive in the entire district. Neighbourhoods tenants. If this really took place as often as Platz and the Zoo neighbourhood. This area is in the centre of the district also fall into the commonly thought, then purchasing power split between the smart new buildings of the middle ranks when it comes to relative hous- would be markedly higher. In fact, there are diplomatic quarter and Potsdamer Platz, and ing costs: the centre of Pankow (13187), its only a few, generally isolated projects aimed the very varied residential areas south of the southern part around Neumannstraße (13189), at tenants and buyers with greater purchasing Landwehrkanal. Chausseestraße (10115) and western Weißensee by Pistoriusstraße (13086) power. What usually stands out the most is Jannowitzbrücke (10179) are in convenient and the area around Ostseestraße which, by public protest against these projects – an at- locations on the edge of the city centre. Prenzlauer Berg standards, is suburban. In all titude which is widespread in the district. of these areas the rent per square metre is What stands out in the district as a whole is considerably lower than in the most expensive In eastern Kreuzberg and most of Friedrich- the extensive three-way split with regards to locations at Prenzlauer Berg; homes are gen- shain, relative housing costs are slightly lower relative housing costs. At the top are areas erally smaller. Purchasing power is also lower, than in the west and south, although the basic in the old Mitte district; then come those in yet the amounts paid in rent are even more phenomenon remains the same: purchasing Moabit, followed up, mainly, by neighbour- so, relatively speaking. power below the Berlin average accompanied hoods in Wedding. This is not only connected by rent on a par with or slightly above the to the centrality of each area but also to the On the north-east outskirts of Berlin you can average. The area with the highest purchasing architecture found there. In Moabit, there is find Pankow’s lowest price per square me- power in the district, Ostkreuz (10245), is only a higher proportion of period buildings from tre – in Karow/Buch (13125). Prices quoted 162nd out of 190 areas in Berlin. The entire Imperial times than in Wedding. Homes are are below five euros on average. This means district is populated by residents who do not also markedly larger in Moabit – but the low that the total rent is relatively low, given that earn a great deal but who are nonetheless purchasing power also makes relative housing homes are often smaller than the average prepared to pay a great deal for their loca- costs higher. In Wedding, on the other hand, for the district and for the city as a whole. tion and surroundings. They pay considerably there are a lot of low cost and, above all, very Residents’ purchasing power is obviously even more for homes near the city centre in trendy small homes. Berlin’s smallest homes on aver- higher. Blankenfelde, Blankenburg (13129) neighbourhoods and other “Kiez” areas with a age can be found in the pre- and post-war and Heinersdorf (13089) are in the top quarter strong character than the sums asked for com- neighbourhoods of Rehberge (13351) and for Berlin. This gives them the lowest relative parable homes in less centrally located areas. Schillerpark (13349). In Rehberge, this makes housing costs in the entire district. In Pankow, And precisely because they place such great the total rent paid the lowest on average in it is only in these neighbourhoods on the out- value on their surroundings having specific the whole city. Although purchasing power skirts that they are below the Berlin average. characteristics, many are especially sensitive is not high, less than 20 percent is spent on Here, people are willing to put up with poor about lower-income residents being forced housing. For older rental contracts, the rate infrastructure in return for cheap housing in out and prices rising, whether this is real or is far lower again. green surroundings. just imagined.

_HousingMarketReport_Berlin_March 2009 Housing Cost Expenditure How are postcode areas located? Due to the limited space, it is not possible in this for Households in Mitte HousingCostAtlas to locate the postcode areas more precisely, e.g. by street and place names. Postal Apartment Basic rent Basic Total 2) Vacancy Household Basic rent Total rent If you would like to see which area a postcode code size in m² in €/m² housing cost housing cost in % purchase in % of house- in % of house- relates to, this can be done at www.google. in €/month in €/month power hold purchase hold purchase de/maps – enter the postcode and “Berlin” in the in €/month power power search field. 10115 77.4 (67) 8.40 (11) 651 (27) 845 2.3 (32) 2.507 (72) 26.0 (25) 33.7 (31) Notes on the housing market tables 10117 108.6 (1) 12.60 (1) 1.365 (1) 1.636 4.6 (18) 2.452 (89) 55.7 (1) 66.7 (1) on the following pages: 10119 82.0 (42) 9.00 (7) 740 (12) 945 2.6 (27) 2.445 (91) 30.3 (10) 38.6 (11) Postcode areas which are in more than one 10178 82.1 (41) 9.30 (5) 761 (11) 966 2.5 (28) 2.300 (130) 33.1 (8) 42.0 (8) district are only listed in the district in which the 10179 72.4 (106) 7.40 (37) 534 (51) 715 1.7 (43) 2.142 (167) 24.9 (31) 33.4 (32) larger part is located. Housing market data: Jones Lang LaSalle 10551 75.4 (81) 5.40 (139) 407 (119) 596 3.7 1) 2.086 (176) 19.5 (67) 28.6 (57) Purchasing power data: GfK GeoMarketing, 10553 68.7 (151) 5.10 (155) 351 (157) 523 n/a 2.212 (156) 15.9 (120) 23.6 (109) GfK Purchasing Power Study: calculation of the 10555 83.0 (36) 5.90 (102) 486 (68) 693 5.9 1) 2.212 (157) 22.0 (52) 31.4 (45) average net disposable household income at postcode level 10557 73.7 (92) 6.50 (70) 477 (72) 662 2.9 1) 2.364 (115) 20.2 (60) 28.0 (63) Vacancy data: Techem/Empirica 10559 77.6 (63) 5.30 (145) 412 (112) 606 6.1 1) 2.101 (174) 19.6 (66) 28.8 (56) 10785 82.4 (39) 7.80 (19) 643 (30) 849 10.7 1) 2.272 (140) 28.3 (13) 37.4 (16) 10787 74.7 (87) 8.30 (14) 620 (34) 806 3.5 1) 2.431 (94) 25.5 (28) 33.2 (33) low high 13347 82.8 (38) 5.10 (160) 421 (105) 628 2.3 1) 2.041 (180) 20.6 (58) 30.8 (48) Map Legend 13349 59.0 (188) 6.40 (72) 380 (131) 528 2.9 (23) 2.213 (155) 17.2 (94) 23.8 (102) Housing cost relative to household purchase power 13351 56.4 (189) 5.00 (162) 284 (189) 425 1.7 (45) 2.293 (134) 12.4 (183) 18.5 (182) 13353 59.4 (186) 5.50 (132) 327 (181) 476 6.1 (11) 2.125 (170) 15.4 (133) 22.4 (128) 13355 68.3 (154) 5.00 (165) 342 (167) 513 n/a 2.157 (166) 15.9 (119) 23.8 (103) 13357 66.2 (169) 5.10 (161) 336 (174) 501 7.3 1) 2.091 (175) 16.0 (115) 24.0 (99) 1) limited data basis for vacancy rate 13359 71.7 (115) 4.70 (176) 339 (170) 519 n/a 2.202 (161) 15.4 (134) 23.5 (112) 2) includes € 2.50 service cost/m2 (average service cost Ø District 74.8 6.73 520 707 4.8 2.245 22.8 31.2 according to GEWOS Institute) 3) no housing quotes Ø Berlin 75.9 6.27 476 671 4.5 2.502 19.2 26.6 ( ) Rank among the 189 postcodes with rental data Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de bR, Kommunikation und Marketing für Gesellschaft Consultants, Baumgardt Map courtesy of: courtesy Map ©

_HousingMarketReport_Berlin_March 2009 Housing Cost Expenditure for Households in Pankow

Postal Apartment Basic rent Basic Total 2) Vacancy Household Basic rent Total rent low Map Legend high code size in m² in €/m² housing cost housing cost in % purchase in % of house- in % of house- in €/month in €/month power hold purchase hold purchase Housing cost relative to household purchase power in €/month power power 10405 77.6 (64) 7.80 (21) 602 (38) 796 1.6 (46) 2.163 (164) 27.8 (17) 36.8 (20) 10407 66.7 (166) 7.20 (44) 478 (71) 645 1.8 (41) 2.108 (172) 22.7 (46) 30.6 (51) 10409 62.8 (185) 6.10 (92) 385 (128) 542 1.0 1) 2.025 (182) 19.0 (73) 26.8 (68) 10435 76.5 (73) 8.60 (10) 659 (24) 850 2.2 1) 2.362 (116) 27.9 (16) 36.0 (21) 10437 69.6 (140) 7.70 (26) 533 (53) 707 1.3 (54) 2.162 (165) 24.6 (32) 32.7 (36) 10439 70.3 (132) 6.50 (68) 455 (83) 631 2.4 (30) 2.060 (179) 22.1 (49) 30.6 (50) 13086 69.8 (138) 5.80 (108) 402 (120) 576 4.2 1) 2.033 (181) 19.8 (63) 28.3 (60) 13088 66.2 (170) 5.50 (129) 367 (144) 532 1.8 (41) 2.203 (160) 16.6 (100) 24.2 (96) 13089 74.1 (91) 5.60 (122) 417 (109) 602 n/a 2.893 (40) 14.4 (148) 20.8 (157) 13125 71.8 (113) 4.80 (174) 345 (162) 525 6.6 (9) 2.459 (87) 14.0 (156) 21.3 (149) 13127 78.0 (60) 5.60 (126) 435 (94) 630 n/a 2.586 (59) 16.8 (99) 24.3 (93) 13129 79.9 (50) 5.80 (107) 463 (79) 663 n/a 2.983 (38) 15.5 (129) 22.2 (134) 13156 73.4 (95) 6.30 (83) 459 (81) 643 3.4 (22) 2.369 (113) 19.4 (70) 27.1 (66) 13158 75.7 (78) 6.30 (80) 476 (75) 665 2.0 (39) 2.505 (73) 19.0 (74) 26.5 (71) 13159 96.0 (9) 7.50 (31) 723 (15) 963 n/a 2.943 (39) 24.6 (33) 32.7 (35) 13187 73.3 (97) 6.20 (87) 454 (84) 637 3.6 (21) 2.114 (171) 21.5 (54) 30.1 (53) 13189 68.0 (156) 5.80 (106) 394 (124) 564 1.6 (49) 2.137 (169) 18.4 (78) 26.4 (73) Ø District 73.5 6.42 473 657 3.6 2.359 20.2 28.1 Ø Berlin 75.9 6.27 476 671 4.5 2.502 19.2 26.6

1) limited data basis for vacancy rate 2) includes € 2.50 service cost/m2 (average service cost according to GEWOS Institute) 3) no housing quotes ( ) Rank among the 189 postcodes with rental data Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de bR, Kommunikation und Marketing für Gesellschaft Consultants, Baumgardt Map courtesy of: courtesy Map ©

10_HousingMarketReport_Berlin_March 2009 high Map Legend Map Housing cost relative to household purchase power purchase household to relative cost Housing low -

(39) (46) (28) (54) (15) (24) (13) (19) (29) (41) (38)

3 2. 3 0.9 3 4.0 3 0. 1 3 7.5 3 5.0 3 7.5 3 6.9 33 .9 31 .9 3 2.4 33 .9 26.6 Total rent Total house of % in purchase hold power -

(40) (48) (34) (50) (20) (29) (19) (22) (37) (45) (43) 23.4 22.2 24.4 22.0 27.3 25.3 24.4 19.2 27.4 26.4 24.0 22.8 23.1 Basic rent Basic house of % in purchase hold power

(187) (173) (178) (162) (185) (189) (183) (186) (190) (188) (184)

1.935 2.107 2.077 2.189 1.954 1.879 1.982 2.502 2.007 1.950 1.810 1.933 1.960 Household purchase power €/month in

(31) (29) (38) (34) 1) 1) 1) 1) 1) 4.5 2.4 2.0 2.5 n/a 2.0 n/a 5.6 2.0 7.0 2.2 3.6 4.5 Vacancy Vacancy % in

2) 753 626 719 650 707 659 733 614 616 635 657 670 671 Total cost housing €/month in

(49) (85) (59) (77) (61) (69) (52) (96) (91) (86) (74)

Friedrichshain-Kreuzberg 549 454 514 468 507 481 434 441 452 483 476 534 476 Basic cost housing €/month in

(55) (64) (81) (71) (75) (54) (96) (77) (86) (58) (65) (average service cost 2 6.80 6.60 6.30 6.40 6.30 6.80 6.00 6.30 6.20 6.70 6.45 6.27 6.60 Basic rent Basic €/m² in (46) (43) (51) (55) (149) (103) (125) (108) (135) (100) (105) 81.4 68.8 82.0 72.7 79.9 71.2 79.7 72.1 69.9 72.9 74.8 75.9 72.5 Apartment m² in size according to GEWOS Institute) according no housing quotes data Rank among the 189 postcodes with rental limited data basis for vacancy rate includes € 2.50 service cost/m Postal code 10961 10249 10967 10247 10965 10245 10963 10969 10997 10999 District Ø Berlin Ø 10243 Housing Cost Expenditure for Households in

3) ( ) 1) 2)

11_HousingMarketReport_Berlin_March 2009 West and North-West: Expensive Centre and Affordable Outskirts

Charlottenburg-Wilmersdorf Reinickendorf Spandau Some of the areas in Berlin with the highest In general, Reinickendorf is a district with com- To a great extent, Berlin’s westernmost district housing costs are around the eastern end of paratively low relative housing costs. Asking is and will remain a last refuge for inexpensive Kurfürstendamm: around Ludwigkirchplatz rent including service costs never rise above housing in Berlin. Costs are around a quarter (postcode: 10719), Sybelstraße and Mom- 25 percent of purchasing power; in some parts below the average for the city as a whole. msenstraße (10629) and Savignyplatz (10623) of the district it is even well below 20 per- Throughout this area, rent quoted for homes the ratio of rent quoted to purchasing power cent. The figure is highest in the large homes on the market are less than 20 percent of is only exceeded in the city as a whole by to the east of the airport (13405) and in the household purchasing power – not includ- the smart location of Unter den Linden. This Märkisches Viertel (postcodes 13435, 13439). ing service costs – and including service costs is partly due to the large size of homes: the While rent quoted here is among they are still less than 25 percent. large number of blocks of opulent period flats the lowest in Berlin, purchasing Expensive, but Even in the area of Gatow/Klad- means that the average size of homes on of- power is also relatively mod- with cheap niches ow (postcode: 14089), which fer available in this area is over 100 square est. This means that the relative has the most attractive land- metres. At the same time, purchasing power is housing costs are higher here than any other scape, between the banks of the Havel, the sometimes only just above the Berlin average, part of the district, which leaves little margin woods and the fields, relative housing costs sometimes even slightly below it. However, for rent increases. At the same time, there is are close to the Berlin average. This can, of many of those with lower incomes have older chronic need for repair work here, as well as course, be explained by local residents’ high rental contracts and are unaffected by today’s for extensive energy-saving modernisation. incomes: household purchasing power is the high asking prices. third highest in Berlin in Gatow/Kladow. Even In the exclusive residential area of Grunewald Reinickendorf’s most sought-after residential the areas which come after these in terms of (14193), total housing costs are actually even locations are in its extreme north and west. relative housing costs are well below the Berlin higher. This area has the second highest price Frohnau (13465), Hermsdorf (13467), Kon- average, with average rent quoted of about per square metre in the city, although the high radshöhe (13505) and Heiligensee (13503) 5.50 euros. These areas are in the Altstadt, incomes mean that a slightly smaller propor- have the highest figures in the district in many or to the south and west of it (13595, 13597, tion of purchasing power is spent on housing respects: in terms of prices per square metre, 13581) and on the western outskirts of the costs. Rent also takes up a fairly large part of the sizes of homes, and certainly total rent. city (Staaken, 13591). average local purchasing power in other at- As regards purchasing power, these areas are tractive areas in the west of the district, such in the top eight in Berlin, meaning that rela- Areas immediately to the west and north-west as in Westend, to the west of Reichsstraße, at tive housing costs remain within limits despite of the Altstadt, such as Neustadt (13585), Lietzensee and in the upmarket urban neigh- the high asking rents. Without service costs, Falkenhagener Feld (13589) and the area bourhood of Wilmersdorf around Güntzel- they are well below 20 percent of purchasing around Zeppelinstraße (13583) have especially straße (14057, 10717). Here and in the parts power; including service costs they are only low housing costs. In these parts, average rent of Charlottenburg north of the S-Bahn railway slightly above that figure. per square metre for homes on the market is (10625, 10627) household incomes stand out also low, with figures around five euros; at as being below average. However, their low In the middle of Reinickendorf are the least ex- the same time they are small in size at roughly level is also due to the fact that large numbers pensive neighbourhoods in the district. Small 60 to 70 square metres. The smallest homes of pensioners and young people live there, homes and low rent per square metre mean in the district are available for rent around both groups in small households. Those in that housing is especially cheap in Alt-Rein- Zeppelinstraße, with an average figure of just established careers with good incomes tend ickendorf (13407), Borsigwalde (13509) and 64.1 square metres. This is why the relative to be swamped in the statistics, although they Alt-Wittenau (13437). Here, there are a lot amount spent on rent (including services) by are also represented in these areas in good of neighbourhoods dating from the pre- and local residents, who do not have extremely numbers. post-war eras, with modest floor plans and high incomes, only accounts for around 20 moderate rent. At the same time, the resi- percent of their purchasing power. Almost throughout this entire district, homes dents’ purchasing power is around the Ber- The cheapest residential areas compared with now on the market require a higher percent- lin average or sometimes even well above it. income are in the north and north-east of the age of average local income than the Berlin Alt-Wittenau (13437) around Reinickendorf district. In Haselhorst (13599), Siemensstadt average. The only exception is northern Char- town hall is a special case: the homes avail- (13629) and Hakenfelde (13587) household lottenburg (13627) south of Jungfernheide able there are the smallest in the district; rent purchasing power is well above the Berlin Park and Tegel airport: an area mainly built up is moderate but, on the other hand, incomes average, but at the same time, homes on of- in the inter-war and post-war periods, which are rather high. As a result, hardly more than fer are small. The rent per square metre is was in fact recently declared a Unesco World 10 percent of purchasing power needs to be between five and 5.50 euros, meaning that Heritage site thanks to the developments spent on rent excluding service costs, and overall conditions are favourable. The rela- there, which were avant-garde at the time only just over 15 percent with service costs tive amount paid on rent, measured in terms they were built. In the west of Charlottenburg included. Waidmannslust (13469) also stands of purchasing power, is also low. In this way, there are two exceptional areas: in Eichkamp out: despite its attractive green location, its Spandau does not only come into question as and on both sides of Heerstraße (14055) rent per square metre rate is among the low- a housing location for people working in these homes are spacious, in green surroundings est in the district. This can be attributed to parts, but also for those working in Charlot- and not exactly cheap, but residents have the neighbourhood around Titiseestraße and tenburg or even Mitte. Both districts are easy high purchasing power and the percentage Schluchseestraße, with its inexpensive rents. to reach on public transport, sometimes in less spent on housing costs is correspondingly low. The people of Waidmannslust also have higher than 10 minutes from Spandau railway station. Finally, there is the special area around the than average purchasing power, making the And Spandau has something that Berlin only Olympic stadium (14053) where there are relative amount they spend on rent one of the has to offer in one other place, Köpenick: a virtually no rented homes. lowest in Berlin. real Old Town.

12_HousingMarketReport_Berlin_March 2009 Housing Cost Expenditure for Households in Charlottenburg-Wilmersdorf

Postal Apartment Basic rent Basic Total 2) Vacancy Household Basic rent Total rent low Map Legend high code size in m² in €/m² housing cost housing cost in % purchase in % of house- in % of house- in €/month in €/month power hold purchase hold purchase Housing cost relative to household purchase power in €/month power power 10585 77.9 (62) 6.60 (62) 516 (58) 711 3.6 1) 2.231 (151) 23.1 (42) 31.9 (42) 10587 66.8 (165) 6.70 (59) 447 (90) 614 1.5 1) 2.384 (109) 18.8 (76) 25.8 (79) 10589 70.6 (129) 6.00 (97) 423 (104) 600 3.8 1) 2.206 (159) 19.2 (71) 27.2 (65) 10623 105.5 (2) 9.00 (9) 947 (6) 1.211 n/a 2.485 (80) 38.1 (4) 48.7 (3) 10625 79.7 (54) 7.50 (33) 596 (42) 796 3.6 (20) 2.294 (133) 26.0 (24) 34.7 (25) 10627 87.1 (24) 6.60 (61) 579 (44) 797 n/a 2.300 (131) 25.2 (30) 34.6 (26) 10629 105.4 (3) 9.00 (8) 949 (5) 1.212 0.8 1) 2.467 (83) 38.5 (3) 49.1 (2) 10707 102.1 (7) 8.40 (12) 853 (7) 1.109 0.9 1) 2.509 (71) 34.0 (7) 44.2 (7) 10709 68.7 (150) 7.20 (43) 496 (64) 668 1.2 1) 2.342 (120) 21.2 (55) 28.5 (59) 10711 84.2 (30) 7.70 (24) 648 (29) 859 8.0 1) 2.393 (106) 27.1 (21) 35.9 (22) 10713 75.2 (85) 6.60 (63) 498 (63) 686 2.2 (33) 2.289 (135) 21.8 (53) 30.0 (55) 10715 78.2 (59) 6.80 (51) 533 (54) 728 4.1 1) 2.297 (132) 23.2 (41) 31.7 (43) 10717 86.8 (25) 7.50 (32) 652 (26) 869 5.4 1) 2.354 (119) 27.7 (18) 36.9 (18) 10719 100.6 (8) 9.70 (3) 973 (4) 1.225 2.1 1) 2.524 (69) 38.6 (2) 48.5 (4) 10789 93.4 (14) 9.10 (6) 848 (8) 1.081 n/a 2.419 (99) 35.1 (6) 44.7 (6) 13627 64.1 (178) 5.60 (118) 362 (150) 522 0.8 1) 2.211 (158) 16.4 (104) 23.6 (111) 14050 85.0 (28) 7.70 (22) 659 (18) 871 0.9 1) 3.113 (35) 21.2 (56) 28.0 (62) 14052 90.5 (18) 7.70 (23) 699 (190) 925 n/a 2.454 (88) 28.5 (12) 37.7 (12) 14053 3) — — — n/a n/a 2.731 (46) — — — — 14055 82.8 (37) 7.80 (18) 650 (28) 857 n/a 3.276 (24) 19.8 (61) 26.2 (77) 14057 88.3 (23) 7.60 (29) 667 (22) 888 3.4 1) 2.367 (114) 28.2 (14) 37.5 (14) 14059 76.3 (76) 6.30 (79) 480 (70) 671 3.7 1) 2.184 (163) 22.0 (51) 30.7 (49) 14193 105.2 (4) 10.60 (2) 1.119 (2) 1.382 1.3 (53) 3.447 (16) 32.5 (9) 40.1 (9) 14197 76.7 (72) 6.80 (52) 520 (57) 712 2.2 1) 2.265 (143) 23.0 (44) 31.4 (44) 14199 88.9 (22) 8.30 (13) 739 (13) 961 2.7 1) 3.120 (34) 23.7 (39) 30.8 (47) Ø District 85.0 7.62 661 873 3.1 2.506 26.4 33.5 Ø Berlin 75.9 6.27 476 671 4.5 2.502 19.2 26.6

13_HousingMarketReport_Berlin_March 2009 Housing Cost Expenditure for Households in Reinickendorf

1) limited data basis for vacancy rate 2) includes € 2.50 service cost/m2 (average service cost according to GEWOS Institute) low Map Legend high 3) no housing quotes ( ) Rank among the 189 postcodes with rental data Housing cost relative to household purchase power

14_HousingMarketReport_Berlin_March 2009 low Map Legend high

Housing cost relative to household purchase power

Housing Cost Expenditure for Households in Spandau

15_HousingMarketReport_Berlin_March 2009 South: Something to Suit Every Budget

Steglitz-Zehlendorf Tempelhof-Schöneberg Neukölln In this affluent south-western district, one area This district is clearly divided: with one excep- Asking rent and incomes are consistently leading the field in terms of relative housing tion, all the areas with higher relative housing higher in the south of the district compared costs is Fichtenberg (postcode: 12165), an costs are in the western part of the district, in with the north. However, residents in north exclusive residential area almost directly neigh- Schöneberg, and all those with lower costs are, Neukölln have to spend a large proportion of bouring Berlin’s second-largest shopping street, without exception, in Tempelhof. The north- their modest purchasing power when mov- Steglitz’s Schloßstraße. In second place comes west and south of Schöneberg are especially ing into a home now on the market. This is Dahlem (14195). Measured by the size of the sought-after residential neighbourhoods where especially true of central locations on either homes on offer, it comes sixth in the city as about one third of average local purchasing side of Karl-Marx-Straße (postcodes: 12043, a whole, and in terms of rent per square me- power goes on rent. Top place is taken by the 12055, 12053). There, housing quality is not tre it even reaches fourth place. However, as area around Viktoria-Luise-Platz (10777) with especially high, but the shopping and trans- Dahlem’s households enjoy a high purchasing its affluent atmosphere, within walking dis- port infrastructure is good. Here, too, the power for the city, they only rank 37th in the tance of the western city centre and KaDeWe relative amount spent on rent is below the city in terms of relative housing costs (in rela- department store. This is where the largest Berlin average. As one moves away from tion to the asking rent). homes in the entire district are available. The Karl-Marx-Straße in north Neukölln, rent per situation is similar in neighbouring areas to the square metre of the homes on offer rises, but After that come areas near the centre of Steg- east and south-east around Winterfeldtplatz these homes drop in size, meaning that overall, litz around Schloßstraße (12163, 12167). Here, (10781), in the Bayerisches Viertel (10779) rent is lower – and, as incomes are somewhat housing costs are markedly lower and homes and around Schöneberg town hall (10825). higher, relative housing costs are lower, too. considerably smaller, although purchasing Considering the atmosphere, which is often This applies to locations to the west of Her- power is also not very high. Residents obvi- well-to-do and refined, the purchasing power, mannstraße (12049) and to the east of Son- ously value their location for several reasons: slightly below average, comes as a surprise. nenallee (12045, 12059). on the one hand, the local infrastructure is al- However, there is a large proportion of small most perfect, on the other, the area is situated households, mainly pensioners. Tellingly, most areas with relative housing costs right between Berlin Mitte and the recrea- of over 20 percent (including service charges) tional areas in the south-west of the city. The Friedenau (12167, 12159), in the south-west- are north of the S-Bahn railway ring and all area between the centre of Zehlendorf and ern section of Schöneberg, has slightly lower those with lower costs are to the south. One Grunewald (14163, 14129, 14169) is charac- purchasing power figures and somewhat high- exception is the northern part of Gropiuss- terised by far greater purchasing power, but er figures for housing costs – so the relative tadt (12351 and 12353), where, for southern also considerably higher housing costs. In the housing costs are also lower. Rent to the east Neukölln, purchasing power is relatively low, areas of Nikolassee and Schlachtensee (12129) of Hauptstraße and Potsdamer Straße is even although housing costs are not. Not far to the with their many villas, residents lower, from the “Bülow crescent” south of the S-Bahn ring are the areas with have even more money than in Flats of every size, far in the north (10783) to Crell- the smallest homes in the district (12359 and Dahlem, putting them in fifth quality and price estraße (10827), “Schöneberg 12347 in Britz, 12057 around the southern place in all of Berlin. In the area bracket island” (10829, bordered on end of Sonnenallee). These are characterised characterised by villas, homes all sides by railway lines) and by buildings dating back to the inter-war and for rent are also quite spacious at around 90 Grazer Damm (12157). Only one area in post-war eras, such as the legendary 1920s square metres, but, including service costs, Tempelhof is in the upper half of rankings in horse-shoe-shaped Hufeisensiedlung develop- rental prices reach from 800 to 1000 euros terms of relative housing costs: Alt-Tempel- ment and the understandably less renowned a month – about a quarter of the average hof (12103) with its historical village centre, High Deck tower block development, from purchasing power in the neighbourhood. pretty parks and ponds, and, tellingly, a small the 1970s. area in Schöneberg, the Lindenhofsiedlung The smallest homes available for rent in the development. At the other end of the rental value scale are district are situated at the north-eastern end In the Tempelhof postcode areas, relative three outlying areas which, while they have (12169). The next places in terms of relative housing costs generally rise as one moves the very highest costs per square metre, also housing costs are taken up by green neigh- from south to north. They are relatively high, enjoy the highest purchasing power in the dis- bourhoods with their typical mixture of de- for example, in the area to the west of the trict: one in western Buckow between Britzer tached single family homes and multi-storey airport which closed in 2008 (12101), and Garten and the city borders (12349), and two apartment blocks: the west (12205) and in western and eastern Mariendorf (12105, in Rudow, the southernmost part of Neukölln south-west of Lichterfelde (12209) and the 12109). Marienfelde has its own East/West (12355, 12357). Here, purchasing power is south-west of Zehlendorf (14165). All three divide. In the west of the area (12279), a well above the district average, but the rents of these areas boast residents with high pur- large development drags down purchasing per square metre of the quoted housing don’t chasing power and homes which are above power. While rent is the lowest in the entire differ all that widely from the average level in average in terms of their size. However, as district, the area is in the midfield in terms of Neukölln. In the entire district there is still no the asking rent per square metre is about relative housing costs. However, incomes are neighbourhood where average rent per square seven euros – not very exceptional – the quite high in Alt-Marienfelde, meaning that metre equals or exceeds six euros. In south housing costs lie below the Berlin average despite considerably higher asking rent, the Rudow (12355), however, this level should be when compared with purchasing power. area comes at the bottom of the district in reached by 2011 at the latest, when the major Finally, the neighbourhoods with the lowest terms of relative costs. In this respect, Lich- new Berlin airport opens here. Thousands of costs, in Lichterfelde and Lankwitz (12207, tenrade (12305, 12307, 12309) is generally jobs and a corresponding demand for housing 12249, 12247) show that it is possible to favourable for its residents. Here, asking rent are expected in the surrounding area. At the live economically in this district with even including service costs can be financed with same time, noise levels should stay low, as the medium or moderate purchasing power. about a fifth of average purchasing power. area is not under a flight path.

16_HousingMarketReport_Berlin_March 2009 high Map Legend Map Housing cost relative to household purchase power purchase household to relative cost Housing low -

(34) (37) (58) (64) (86) (72) (78) (87) (131) (101) (142) (110) (146) (104) (107) (115) (167)

33 . 1 22. 3 2 3 .9 2 1 .9 2 3 .6 2 1 .4 2 3 .8 2 3 .7 2 3 .4 3 2.5 28.6 27.6 24.7 20.0 26.5 25.9 24.6 2 3 .8 26.6 Total rent Total house of % in purchase hold power -

(64) (57) (35) (86) (85) (96) (82) (59) (62) (88) (89) (79) (26) (152) (106) (123) (141) 19.7 14.3 20.6 17.5 19.2 24.2 17.6 16.3 17.8 15.7 17.1 14.8 18.2 20.3 19.8 17.5 17.5 18.3 25.7 Basic rent Basic house of % in purchase hold power (9) (5) (6) (33) (85) (58) (74) (29) (17) (36) (26) (68) (10) (28) (12) (25) (104)

2.400 3.145 2.461 2.991 2.502 2.590 2.505 3.257 3.426 3.090 3.266 2.529 3.732 3.806 3.709 3.260 3.598 3.272 3.794 Household purchase power €/month in

(35) (47) (53) 1) 1) 1) 1) 1) 1) 1) 1) 1) 1) 1) 1) 1) 1) 2.1 3.0 0.9 2.7 1.6 0.7 3.3 0.1 5.5 2.6 2.6 3.3 2.2 3.2 0.6 2.7 1.4 2.9 4.5 Vacancy Vacancy % in

2) 663 818 677 771 630 887 841 805 857 620 728 962 772 541 703 751 671 1.007 1.234 Steglitz-Zehlendorf Total cost housing €/month in

(3) (76) (36) (67) (47) (88) (19) (10) (31) (41) (33) (92) (55) (14) (45) (60) (136)

557 476 474 450 608 486 558 679 772 630 599 628 441 530 734 571 375 975 507 Basic cost housing €/month in

(4) (85) (84) (41) (74) (66) (16) (15) (34) (40) (50) (88) (57) (17) (45) (67) (119) (average service cost 2 6.20 6.67 6.27 6.20 7.30 6.40 6.50 8.10 8.20 7.50 7.30 6.90 6.20 6.70 8.00 7.10 9.40 5.60 6.50 Basic rent Basic €/m² in (6) (77) (32) (74) (27) (34) (13) (29) (40) (15) (57) (16) (48) (61) (109) (121) (167) Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de bR, Kommunikation und Marketing für Gesellschaft Consultants, Baumgardt 75.9 77.7 75.9 83.8 76.5 85.2 72.0 83.4 93.8 84.4 82.3 91.7 71.3 79.0 91.2 80.4 66.5 78.0 Apartment m² in size 103.3 according to GEWOS Institute) according no housing quotes data Rank among the 189 postcodes with rental limited data basis for vacancy rate includes € 2.50 service cost/m Map courtesy of: courtesy Map Postal code 12167 District Ø Berlin Ø 12205 12207 12209 12247 14109 14129 14167 14169 12165 12169 12203 14163 14165 14195 12249 12163 3) ( ) © 1) 2) Housing Cost Expenditure

for Households in

17_HousingMarketReport_Berlin_March 2009 Housing Cost Expenditure for Households in Tempelhof-Schöneberg

low Map Legend high

Housing cost relative to household purchase power

Postal Apartment Basic rent Basic Total 2) Vacancy Household Basic rent Total rent code size in m² in €/m² housing cost housing cost in % purchase in % of house- in % of house- in €/month in €/month power hold purchase hold purchase in €/month power power 10777 94.2 (12) 7.60 (27) 717 (16) 953 0.5 1) 2.402 (103) 29.9 (11) 39.7 (10) 10779 80.4 (49) 7.50 (35) 599 (40) 800 0.5 1) 2.341 (122) 25.6 (27) 34.2 (27) 10781 79.5 (56) 7.50 (30) 599 (39) 798 1.8 1) 2.272 (141) 26.4 (23) 35.1 (23) 10783 74.2 (89) 5.60 (120) 418 (108) 604 0.7 1) 2.141 (168) 19.5 (68) 28.2 (61) 10823 90.1 (20) 6.30 (78) 568 (46) 793 2.8 1) 2.341 (121) 24.2 (36) 33.9 (30) 10825 86.3 (26) 7.80 (20) 672 (21) 887 3.1 1) 2.385 (108) 28.2 (15) 37.2 (17) 10827 70.5 (130) 5.90 (101) 414 (110) 590 n/a 2.240 (150) 18.5 (77) 26.4 (75) 10829 71.3 (123) 6.30 (76) 451 (87) 630 n/a 2.478 (82) 18.2 (81) 25.4 (81) 12099 71.8 (112) 5.70 (115) 408 (118) 587 n/a 2.821 (41) 14.5 (146) 20.8 (155) 12101 77.6 (65) 6.00 (94) 468 (78) 662 n/a 2.729 (47) 17.1 (95) 24.3 (94) 12103 72.7 (102) 6.20 (89) 449 (89) 630 3.2 1) 2.355 (118) 19.1 (72) 26.8 (69) 12105 68.5 (153) 5.70 (116) 389 (127) 560 0.4 (58) 2.392 (107) 16.3 (108) 23.4 (114) 12107 71.5 (118) 5.70 (111) 410 (114) 589 2.3 1) 3.167 (32) 12.9 (175) 18.6 (179) 12109 67.9 (157) 5.60 (123) 382 (129) 552 2.2 1) 2.410 (101) 15.9 (121) 22.9 (120) 12157 76.7 (71) 6.00 (95) 462 (80) 654 3.6 1) 2.459 (86) 18.8 (75) 26.6 (70) 12159 80.6 (47) 6.90 (49) 558 (48) 759 2.4 1) 2.496 (77) 22.3 (47) 30.4 (52) 12161 81.8 (44) 7.20 (42) 593 (43) 797 1.7 1) 2.482 (81) 23.9 (38) 32.1 (40) 12277 73.2 (98) 5.80 (104) 427 (102) 610 1.9 1) 3.291 (22) 13.0 (174) 18.5 (181) 12279 71.4 (120) 5.10 (150) 367 (143) 546 0.8 1) 2.309 (129) 15.9 (116) 23.6 (108) 12305 71.4 (119) 6.10 (93) 434 (95) 613 1.9 1) 3.180 (31) 13.7 (164) 19.3 (174) 12307 83.3 (35) 6.50 (69) 540 (50) 748 n/a 3.342 (19) 16.1 (111) 22.4 (129) 1) limited data basis for vacancy rate 12309 78.3 (58) 5.60 (128) 435 (93) 630 5.4 (15) 3.089 (37) 14.1 (155) 20.4 (163) 2) includes € 2.50 service cost/m2 (average service cost Ø District 73.6 6.03 468 652 3.4 2.484 18.4 25.7 according to GEWOS Institute) 3) no housing quotes Ø Berlin 75.9 6.27 476 671 4.5 2.502 19.2 26.6 ( ) Rank among the 189 postcodes with rental data

18_HousingMarketReport_Berlin_March 2009 Postal Apartment Basic rent Basic Total 2) Vacancy Household Basic rent Total rent Housing Cost code size in m² in €/m² housing cost housing cost in % purchase in % of house- in % of house- in €/month in €/month power hold purchase hold purchase in €/month power power Expenditure for 12043 71.6 (116) 5.00 (164) 360 (153) 539 11.3 1) 2.266 (142) 15.9 (118) 23.8 (105) 12045 65.9 (171) 5.20 (147) 344 (165) 509 5.1 (16) 2.265 (144) 15.2 (137) 22.5 (126) Households in 12047 65.4 (173) 5.50 (133) 360 (154) 523 4.1 1) 2.372 (111) 15.2 (139) 22.1 (137) 12049 67.4 (160) 5.10 (159) 343 (166) 511 n/a 2.326 (127) 14.7 (143) 22.0 (139) Neukölln 12051 69.3 (145) 5.00 (163) 348 (158) 522 5.5 (14) 2.257 (146) 15.4 (132) 23.1 (117) 12053 69.0 (148) 4.90 (171) 340 (169) 512 2.6 1) 2.245 (149) 15.1 (140) 22.8 (122) 12055 74.1 (90) 5.00 (168) 369 (141) 554 6.8 1) 2.336 (124) 15.8 (122) 23.7 (106) 12057 62.9 (184) 5.00 (169) 312 (186) 470 n/a 2.375 (110) 13.2 (172) 19.8 (170) 12059 66.4 (168) 5.00 (166) 332 (177) 498 7.5 1) 2.394 (105) 13.9 (160) 20.8 (158) 12347 65.8 (172) 5.10 (157) 336 (173) 500 0.8 (55) 2.605 (57) 12.9 (176) 19.2 (175) 12349 68.6 (152) 5.70 (112) 392 (125) 564 1.1 1) 3.290 (23) 11.9 (186) 17.1 (186) 12351 70.7 (127) 5.30 (146) 372 (139) 548 0.7 (57) 2.605 (56) 14.3 (154) 21.1 (152) 12353 71.8 (110) 4.70 (177) 338 (171) 518 n/a 2.435 (93) 13.9 (158) 21.3 (151) 12355 75.3 (83) 5.70 (117) 427 (101) 615 2.1 (36) 3.330 (20) 12.8 (177) 18.5 (183) 12357 63.7 (182) 5.90 (98) 378 (133) 538 n/a 3.526 (14) 10.7 (188) 15.2 (189) 12359 63.5 (183) 5.50 (134) 348 (159) 507 n/a 2.549 (64) 13.6 (165) 19.9 (168) Ø District 68.2 5.23 356 527 4.8 2.574 14.0 20.8 Ø Berlin 75.9 6.27 476 671 4.5 2.502 19.2 26.6

1) limited data basis for vacancy rate 2) includes € 2.50 service cost/m2 (average service cost according to GEWOS Institute) 3) no housing quotes ( ) Rank among the 189 postcodes with rental data

low Map Legend high

Housing cost relative to household purchase power Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de bR, Kommunikation und Marketing für Gesellschaft Consultants, Baumgardt Map courtesy of: courtesy Map ©

19_HousingMarketReport_Berlin_March 2009 East: Leafy Areas and Prefab Blocks

Lichtenberg Marzahn-Hellersdorf Treptow-Köpenick This district is varied and well-established. Out of all the districts in Berlin, Marzahn-Hel- In Berlin’s largest district in terms of area, there There are some odd residential areas of high lersdorf has the cheapest asking rent com- are many inexpensive, green residential loca- quality, large expanses of medium quality and pared with local residents’ purchasing power. tions. The highest rent quoted in relation to some havens of inexpensive housing. On bal- Except for the area of Ahrensfelde (postcode: local purchasing power is in Friedrichshagen ance, the district falls below the city-wide aver- 12689), with its low purchasing power, this (postcode: 12587) near Müggelsee – the only age for all indicators. Rent is so reasonable that ratio puts the entire district in the cheapest neighbourhood on the outskirts of Berlin that this is also the case for relative housing costs. fifth for Berlin. Within Marzahn-Hellersdorf can boast a suburban boulevard, Bölsches- By far the highest relative housing costs are there is a clear north-south divide: in the areas traße. This is followed by the relatively isolated, found in Alt-Hohenschönhausen (postcode: of Kaulsdorf (12621), Biesdorf(12683) and idyllic area of Rahnsdorf (12589), home to 13053). Here, rented homes on the market are Mahlsdorf (12623) to the south of the No. 5 the residents of Treptow-Köpenick with the strikingly large – with an average of over 100 S-Bahn line, as well as on the eastern outskirts, highest purchasing power, and where by far square metres, they come fifth place in Berlin. people earn more and live far more expen- the most expensive homes in the entire dis- Asking rent per square metre is also well above sively than in the large GDR developments in trict in terms of rent per square metre are on average, but purchasing power is low, mean- Marzahn and Hellersdorf in the north of the the market. At the westernmost end, which is ing that almost 47 percent is required for rent district. The latter area also includes north- also the closest to the city centre, is Treptower (including service charges) for homes now on ern Kaulsdorf (12619). In these parts, rent Park (12435). Incomes are considerably lower the market. This puts this area in fifth place, per square metre is almost always below five and homes smaller and more inexpensive, but city-wide, for relative housing costs. euros; in central Marzahn around Mehrower rental costs are similarly high. The area which Allee (12687) the asking rent is the lowest in comes next in this regard, Altglienicke (12524) It is followed by a large area in the middle of all of Berlin. is relatively far out, but is obviously already Lichtenberg (10367, 13055, 10365, 10369, benefiting from its proximity to the future ma- 10315), out of which the neighbourhood It is not expected to rise considerably in the jor Berlin airport and the commercial estates closest to the city centre, by the Stadtpark foreseeable future, as more areas suffer from planned in conjunction with the airport on the (10367) comes lowest in terms of purchasing high vacancy rates here than anywhere else in outskirts of the district. However, this district power and highest in terms of relative hous- Berlin. This is due both to the jutting architec- will not be affected by air traffic noise, as it is ing costs. Throughout these areas, incomes ture and the location, far from the city centre, at an angle to the runways. are moderate, as is the rent per square metre as well as the reputation of these neighbour- of properties on the market. Thus, housing hoods, which is not particularly good. Con- In terms of the relative amount paid on rent, costs in relation to purchasing power are in the sidering this, the good connections by S-Bahn the next three areas are again in the old midfield for Berlin. This applies both to neigh- and underground are of little comfort. The eastern district of Köpenick: Wendenschloß bourhoods with period buildings and to the layouts are also often problematic and the (12557), set in an idyllic location on the river extensive developments from homes not exactly spacious. Dahme, shares a postcode with the suburbs GDR times. One special posi- Prefabs and Demolition and conversion can of Köpenick. Yet purchasing power is relatively tion is occupied by Karlshorst private homes only help within certain limits, as low. Müggelheim (12559) is the neighbour- (10318). Its residents have by in Ahrensfelde, where, despite hood which is the furthest from the city in far the highest purchasing power in the district. the disappearance of thousands of homes and terms of location and atmosphere; however, Rent per square metre and the size of homes conversion of many more into the more attrac- its idyllic situation is being spoilt by increasing are close to the Berlin average, but asking rent tive “Ahrensfelder Terrassen” complex, there air traffic. The Old Town of Köpenick and the is very reasonable in relation to the level of is still a large oversupply. Other improvement areas adjoining it to the north (12555) could local affluence. One thing which stands out projects, such as the “Gardens of the World” form a medium-sized town in themselves, is the high vacancy rate in this part of town in Marzahn recreational park, have improved both in terms of the size and appearance of – which is obviously too expensive for some the quality of the neighbourhood but have not the area and the size of homes, levels of rent people in Lichtenberg. managed to halt the general trend of people and spending ratios. moving out. Two postcode areas in Hohenschönhausen All the areas which come after it, with relatively are dominated by Berlin’s third-largest pre- However, there are also noticeably high vacan- low costs, are again in the district of Treptow. fab housing development, Neu-Hohenschön- cy rates in the district away from the prefab While this area is convenient for transport, it hausen. The west of the district (13051) comes blocks, such as in Biesdorf and Mahlsdorf. This also has a more commercial nature with fewer last as a whole in terms of asking rent per is affecting homes dating back to the 1990s, woods and lakes than Köpenick. Adlershof square metre, meaning that despite residents’ as well as renovated period buildings, of which (12489) is improving thanks to the science rather moderate purchasing power, they only a fairly large number are on the market here. park built on the site of the old Johannisthal have low relative housing costs. In the east Rent quoted per square metre is about two airport. At Baumschulenweg (12437), pur- (13059), Alt-Wartenberg is populated by large euros higher than in the northern part of the chasing power is the lowest, but homes are numbers of higher earners, meaning that rela- district, making them appear unacceptable to also the smallest and rent the cheapest. Rent tive housing costs remain below that of the many homeseekers from those parts, who are per square metre, on the other hand, is better western part of the district. Relative housing used to the lower levels of rent. Residents of value in Oberschöneweide and Niederschöne- costs are the lowest in the entire district in Kaulsdorf, Biesdorf and Mahlsdorf, who are weide (12459, 12439). These historical in- Falkenberg (13057), in the north-east. This rather high earners, mostly live in owner-oc- dustrial districts are slowly changing: housing is not actually a concentrated neighbourhood cupied homes, of which thousands have been should remain inexpensive for some time. At per se, rather it consists of different residential built in recent years. Land is (and has long the bottom end of relative sums paid on rent settlements spread out across the wide, open been) readily available in housing areas which, are the rather high-income outlying areas of countryside. until recently, were only sparsely developed. Grünau (12527) and Bohnsdorf (12526).

20_HousingMarketReport_Berlin_March 2009 Housing Cost Expenditure for Households in Lichtenberg

low Map Legend high

Housing cost relative to household purchase power

21_HousingMarketReport_Berlin_March 2009 Housing Cost Expenditure for Households in Marzahn-Hellersdorf

low Map Legend high Postal Apartment Basic rent Basic Total 2) Vacancy Household Basic rent Total rent code size in m² in €/m² housing cost housing cost in % purchase in % of house- in % of house- Housing cost relative to household purchase power in €/month in €/month power hold purchase hold purchase in €/month power power 12619 68.2 (155) 4.40 (187) 302 (187) 473 8.8 (3) 2.532 (67) 11.9 (185) 18.7 (178) 12621 75.6 (79) 6.70 (60) 506 (62) 695 n/a 3.689 (11) 13.7 (163) 18.8 (177) 12623 76.9 (70) 6.40 (73) 489 (66) 682 7.3 1) 3.983 (1) 12.3 (184) 17.1 (187) 12627 69.4 (141) 4.60 (183) 317 (184) 490 10.0 (2) 2.498 (75) 12.7 (180) 19.6 (172) 12629 70.5 (131) 4.40 (186) 313 (185) 489 7.4 (7) 2.464 (84) 12.7 (178) 19.9 (169) 12679 71.1 (126) 4.50 (184) 322 (183) 500 7.9 (6) 2.409 (102) 13.4 (171) 20.7 (160) 12681 75.2 (84) 4.60 (182) 345 (164) 533 6.0 (12) 2.775 (43) 12.4 (182) 19.2 (176) 12683 73.3 (96) 6.30 (82) 458 (82) 641 5.8 (13) 3.534 (13) 13.0 (173) 18.2 (184) 12685 76.4 (75) 4.80 (173) 369 (140) 560 6.9 (8) 2.671 (48) 13.8 (161) 21.0 (153) 12687 67.2 (161) 4.30 (189) 289 (188) 457 8.5 (4) 2.278 (138) 12.7 (179) 20.1 (166) 12689 72.6 (104) 4.60 (181) 335 (175) 516 8.4 (5) 2.287 (137) 14.6 (144) 22.6 (124) Ø District 72.4 5.05 368 549 11.4 2.829 13.0 19.6 Ø Berlin 75.9 6.27 476 671 4.5 2.502 19.2 26.6

1) limited data basis for vacancy rate 2) includes € 2.50 service cost/m2 (average service cost according to GEWOS Institute) 3) no housing quotes ( ) Rank among the 189 postcodes with rental data

22_HousingMarketReport_Berlin_March 2009 high Map Legend Map Housing cost relative to household purchase power purchase household to relative cost Housing low (average service cost 2 according to GEWOS Institute) according no housing quotes data Rank among the 189 postcodes with rental limited data basis for vacancy rate includes € 2.50 service cost/m 3) ( ) 1) 2) -

(98) (82) (83) (80) (67) (74) (132) (150) (147) (133) (180) (125) (156) (123)

24. 1 22. 3 25. 1 2 1 . 3 2 1 .4 22. 3 1 8.5 25. 1 25.5 22.6 20.8 22.6 27.0 26.4 2 3 .2 26.6 Total rent Total house of % in purchase hold power -

(65) (98) (69) (91) (84) (87) (125) (131) (151) (149) (135) (181) (138) (124) 19.6 16.9 15.6 15.5 19.4 17.4 17.8 14.3 14.4 15.4 12.6 15.2 15.7 17.6 16.2 19.2 Basic rent Basic house of % in purchase hold power (51) (61) (95) (18) (96) (98) (63) (65) (90) (27) (30) (55) (126) (125)

2.656 2.559 2.430 2.331 3.392 2.430 2.421 2.553 2.544 2.445 3.264 3.245 2.606 2.333 2.658 2.502 Household purchase power €/month in

(51) (25) (61) (48) (44) 1) 1) 1) 1) 1) 1) 1) n/a 1.0 0.5 1.5 6.4 1.1 2.8 10.1 0.3 n/a 5.9 3.3 1.6 1.7 3.2 4.5 Vacancy Vacancy % in

2) 716 544 605 617 544 545 549 675 520 895 589 585 610 617 615 671

Total cost housing €/month in

(56) (97) (65) (25) (98) (147) (113) (146) (135) (132) (152) (116) (117) (103)

522 366 412 433 366 375 380 493 360 431 476 658 410 409 424 430 Basic cost housing €/month in

(56) (53) (47) (154) (143) (100) (152) (130) (124) (121) (113) (103) (114) (110) 6.70 5.10 5.30 5.90 5.10 5.50 5.60 6.80 5.60 7.00 5.82 6.27 5.70 5.80 5.70 5.70 Basic rent Basic €/m² in (66) (69) (94) (11) (88) (86) (117) (124) (158) (159) (101) (179) (114) (134) Baumgardt Consultants, Gesellschaft für Marketing und Kommunikation bR, www.baumgardt-online.de bR, Kommunikation und Marketing für Gesellschaft Consultants, Baumgardt 77.6 71.5 77.3 73.5 71.2 67.8 67.6 72.8 64.0 94.7 73.5 75.9 74.3 71.8 70.2 74.9 Apartment m² in size Map courtesy of: courtesy Map Postal code 12587 12439 12526 12559 12459 12487 12489 12527 12437 12589 District Ø Berlin Ø 12524 12555 12557 12435 Housing Cost Expenditure

23_HousingMarketReport_Berlin_March 2009 Berlin’s Exceptional Residential Areas

The biggest apartments The smallest apartments Postal City district Location Apartment Postal City district Location Apartment code size1) in m2 code size1) in m2 10117 Mitte Unter den Linden 108.6 13351 Mitte Rehberge 56.4 10623 Charlottenburg-Wilmersdorf Savignyplatz 105.5 13349 Mitte Schillerpark 59.0 10629 Charlottenburg-Wilmersdorf Sybelstraße 105.4 13059 Lichtenberg Wartenberg 59.0 14193 Charlottenburg-Wilmersdorf Grunewald 105.2 13353 Mitte Westhafen 59.4 13053 Lichtenberg Alt-Hohenschönh. 103.8 10409 Pankow Ostseestraße 62.8

1) Average of offers

The highest rent per square metre The lowest rent per square metre Postal City district Location Basic rent1) Postal City district Location Basic rent1) code €/m2/month code €/m2/month 10117 Mitte Unter den Linden 12.6 12687 Marzahn-Hellersdorf Mehrower Allee 4.3 14193 Charlottenburg-Wilmersdorf Grunewald 10.6 13439 Reinickendorf Märk. Viertel Ost 4.4 10719 Charlottenburg-Wilmersdorf Ludwigkirchplatz 9.7 12629 Marzahn-Hellersdorf Cottbusser Platz 4.4 14195 Steglitz-Zehlendorf Dahlem 9.4 12619 Marzahn-Hellersdorf Kaulsdorf-Nord 4.4 10178 Mitte Alexanderplatz 9.3 13435 Reinickendorf Märk. Viertel West 4.5

1) Average of offers

The highest housing costs (basic rent) The lowest housing costs (basic rent) Postal City district Location Housing cost1) Postal City district Location Housing cost1) code in €/month code in €/month 10117 Mitte Unter den Linden 1.365 13351 Mitte Rehberge 284 14193 Charlottenburg-Wilmersdorf Grunewald 1.119 12687 Marzahn-Hellersdorf Mehrower Allee 289 14195 Steglitz-Zehlendorf Dahlem 975 12619 Marzahn-Hellersdorf Kaulsdorf-Nord 302 10719 Charlottenburg-Wilmersdorf Ludwigkirchplatz 973 12057 Neukölln Sonnenallee Süd 312 10629 Charlottenburg-Wilmersdorf Sybelstr. 949 12629 Marzahn-Hellersdorf Cottbusser Platz 313

1) Average of offers

The highest vacancies The lowest vacancies Postal City district Location Vacancy1) in % Postal City district Location Vacancy1) in % code code 13593 Spandau Heerstr./Wilhelmstr. 13.4 10319 Lichtenberg Friedrichsfelde Süd 0.2 12627 Marzahn-Hellersdorf Hellersdorf-Nord 10.0 10367 Lichtenberg Stadtpark 0.3 12619 Marzahn-Hellersdorf Kaulsdorf-Nord 8.8 12437 Treptow-Köpenick Baumschulenweg 0.3 12687 Marzahn-Hellersdorf Mehrower Allee 8.5 12105 Tempelhof-Schöneberg Mariendorf-West 0.4 12689 Marzahn-Hellersdorf Ahrensfelde 8.4 10369 Lichtenberg Fennpfuhl 0.4

1) Techem/Empirica vacancy index. Only city districts with sufficient data

The highest purchasing power growth The biggest purchasing power decline Postal City district Location Purchase power Postal City district Location Purchase power code increase1) in % code decline1,2) in % 13405 Reinickendorf K.-Schumacher-D. 2.4 13089 Pankow Heinersdorf –3.1 12099 Tempelhof-Schöneberg Tempelhof-Ost 2.3 14055 Charlottenburg-Wilmersdorf Eichkamp/Heerstr. –2.8 12687 Marzahn-Hellersdorf Mehrower Allee 2.2 12524 Treptow-Köpenick Altglienicke –2.4 12685 Marzahn-Hellersdorf Marzahn-Mitte 2.0 12309 Tempelhof-Schöneberg Lichtenrade-Südost –2.2 10117 Mitte Unter den Linden 1.9 13189 Pankow Neumannstraße –2.1

1) 2008 to 2009 (forecast) 2) excl. postcode 14053 (no housing market) Source: GfK GeoMarketing

The highest total costs The lowest total costs Postal City district Location Total rent1) Postal City district Location Total rent1) code cost in % code cost in % 10117 Mitte Unter den Linden 66.7 12357 Neukölln Rudow-Ost 15.2 10629 Charlottenburg-Wilmersdorf Sybelstr. 49.1 13437 Reinickendorf Alt-Wittenau 15.4 10623 Charlottenburg-Wilmersdorf Savignyplatz 48.7 12623 Marzahn-Hellersdorf Mahlsdorf 17.1 10719 Charlottenburg-Wilmersdorf Ludwigkirchplatz 48.5 12349 Neukölln Buckow-West 17.1 13053 Lichtenberg Alt-Hohenschönh. 46.7 13469 Reinickendorf Waidmannslust 17.2

1) Rent asked (total) in relation to household purchasing power in %

24_HousingMarketReport_Berlin_March 2009