Condominium Report Berlin 2017/2018

CONDOMINIUM REPORT BERLIN 2017/2018

INTERVIEW WITH RESIDENTIAL TOWERS – URBAN DEVELOPMENT – KNIGHT FRANK BERLIN GROWING HIGHER THE SOUTHEAST IS BOOMING Page 16 Page 26 Page 34

From Boom to Growth EDITORIAL

Dear readers,

We are pleased to present to you what is now the sixth issue of the Condominium Report Berlin. The title, FROM BOOM TO GROWTH, refers to the curve the Berlin residential market will presumably trace in the coming twelve months. This is because, from population development to construction activity and the level of interest rates, all socioeconomic indicators are in place for a further upswing in Berlin’s residential market. Immigration into Germany has, indeed, fallen by quite a bit, but Ber- lin – as capital of the strongest and most stable European national economy – has gained a great deal of appeal internationally. Most recently, the city has been attracting more and more US and UK buyers. The decline in the number of building permits issued in the first quarter of 2017 is another clear signal that the backlog in demand will persist, and that the trend towards migration to the ex-burbs will continue, one that our survey of developers has confirmed. One cause for the construction boom outside the city limits also seems to be the way Berlin deals with property developers. In his foreword, Michael Voigtländer does not mince words about this: “Nowhere else,” he says, “is there as much vehement resistance to investors as in Berlin.” It is in this vein that we too would like to appeal to politicians to recognize the interest of all Berlin and finally support private residential construction. Condominiums, built and sold at a profit, also relieve Ber- lin’s housing market. ¤ 6.5 per square meter are actually possible – as a monthly interest rate for threshold households in Berlin and when banks, property developers and the government of the State of Berlin pull together to make it happen.

We hope you will find this an interesting read, Nikolaus Ziegert and Sven Henkes

Data, facts and comparisons for Berlin and its neighborhoods Owner Managing Director ZIEGERT – Bank- und Immobilienconsulting GmbH BERLIN OVERVIEW

GERMANY

GENERAL / Brexit vote, Trump’s protectionism and growing populism in some European countries are making future developments of the European Union less predictable. In an EU marked by uncertainties, the German real estate / Thanks to Germany’s economic prowess, market is considered to be especially crisis-proof. investments here are, however, regarded Berlin’s comparatively moderate prices also promise that the as particularly safe for the future. The market will offer sustainable growth. German real estate market is therefore rightly considered a safe harbour in Europe. / In addition, the federal economic structure assures not only diversity on the German real estate market, it also results in a particularly high degree of stability. / The differences among income and population groups in Germany are also less striking than in a number of neighboring countries. Socio-political protests are CONDOMINIUMS SOLD therefore less likely than elsewhere. / The European Central Bank’s key interest With the exception of 2014 (increase in the property transfer tax), the number of units sold in Berlin has ranged around 20,000 rate has been 0 % since March 2016. No one annually. This figure is steadily increasing. expects any drastic reversal in the near future as the onus of higher interest payments would cause further deterioration in the currently weak national economies 2016 20,942 Ø 3,036 €/m² First sales 5,300 of Greece and Italy. 2015 21,553 Ø 2,876 €/m² BERLIN 2014 17,664 Ø 2,513 €/m² Ø-sales price 2016 / Berlin’s economy has posted strong growth 2013 20,169 (first sale and resale) since 2006: The economy is presently growing at an average rate of 2 %, above 2012 20,824

Germany’s national average of 1.2 % . Per- 2011 17,315 capita GDP, however, remains lower than the

58+69+67+59+72+70 national average. Resales ECONOMIC PERFORMANCE / 31 million overnight stays were booked by 0 5,000 10,000 15,000 20,000 25,000 Units sold 15,642 tourists in Berlin in 2016, third place among From 2015 to 2016, real GDP in Berlin grew by 2.7 %. European destinations. Foreign guests were Together with Saxony, Berlin posted the highest growth responsible for 46 % of all overnight stays. Number of condominiums sold without package sales; of any German State. Source: Gutachterausschuss für Grundstückswerte Berlin This goes hand-in-hand with the growing (Panel of Experts for Property Appraisals Berlin) demand for serviced apartments in central locations. Per capita GDP 2015 Berlin Germany 35,428 € 37,127 € / Not only the cost of living, which is low in both a German and international context, is making Berlin a residential location in high SUPPLY AND DEMAND FOR Price classes Offerings Searches Total GDP Berlin Germany demand. Rich cultural offerings, a diverse CONDOMINIUMS IN BERLIN restaurant scene and, above all, Berlin’s spirit Comparison to < 1,000 €/m2 0 % 1 % 2016 VS. 2015 2015 120 of giving space to develop creativity freely are also appealing to visitors and Since 2014, demand has clearly shifted into 1,001—1,500 €/m2 3 % 4 % buyers alike. higher-priced segments. In 2016, for the first time, demand exceeded supply for units priced above 1,501—2,000 €/m2 7 % 9 % 90 / Berlin is becoming more and more interes- €5,000 per square meter. Acceptance of current ting for foreign investors. This is also on market prices can now be found among broad 2,001—2,500 €/m2 11 % 11 % clear display in ZIEGERT’s figures: In 2016, segments of the population. 25 % of those purchasing newly built con- 2,501—3,000 €/m2 60 15 % 12 % dominiums came from outside German, the 2006 2008 2010 2012 2014 2016 largest 3,001—3,500 €/m2 18 % 12 % numbers coming from Switzerland, the UK, 3,501—5,000 €/m2 30 % 34 % the USA, Russia and China. Offerings and searches for condominiums at Indexed development of GDP for Berlin and Germany: Index 2010 = 100; ImmobilienScout24; Source: Amt für Statistik Berlin-Brandenburg, Statistisches Bundesamt 2 Source: ImmobilienScout24 MarktNavigator Profi > 5,001 €/m 16 % 17 % (Office for Statistics Berlin-Brandenburg, Federal Office for Statistics)

4 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 5 BERLIN OVERVIEW POPULATION DEVELOPMENT / The trend in Germany towards urbanization continues uninterrupted. It is primarily the top MARKET seven cities that are benefiting from immigration from within and outside the country. / In 2016, Berlin counted a population of around 3.67 million, 60,000 more than the previous Even during an ongoing building boom, the demand for living year. The percentage growth of 1.7 % also space keeps growing. Only a fraction of the building permits issued exceeded that of the prior year. actually end up becoming residential projects. / Not only Berlin itself is growing, its surroundings are becoming more and more appealing too. By 2030, population growth of 7 % is expected for the metropolitan Ber- lin-Brandenburg area. This figure for the City of Berlin itself will be a bit lower at 6 %. / Very strong growth can presently be found in METROPOLISES COMPARED: ZIEGERT the neighborhoods of Lichtenberg and Trep- DEVELOPMENT OF SUPPLY AND DEMAND DEMAND INDEX tow-Köpenick. A particularly large number of new construction projects are in develop- The conspicuously low residential ownership rate in Berlin All Berlin neighborhoods are posting a rising ment there (condominium and rental). In harbours great potential for the condominium market. demand for condominiums. addition, acceptance of those areas as residential locations has also grown significantly in recent years. Population Construction com- Sold condominiums Prime price Indicator Prognosis Metro- Residents prognosis pletions per 1,000 per 1,000 residents Ownership segment / ZIEGERT figures show that new Berliners are 2016 region* 2016 2015— 2030 residents 2016 2016 rate 2016 Q4 2016 in €/m² attracted to the city center. Many established BERLIN 4,494,545 +7 % 2.412 5.702 15 %1,2 7,621² Highly dynamic demand Berliners, on the other hand, are moving from the center to the suburbs due to the more LONDON 8,832,400 +18 % 3.44 7.62 52 % 31,510 Growing demand affordable prices there. In 2016, almost 83 % of new Berliner owner-occupants purchased VIENNA 3,131,317 +13 % 1.81 1.63 23 % 17,743 Stable demand a condominium in a central location in the NEW YORK 20,292,520 +7 % 0.54 1.20 32 % 36,854 city. Self-prepared indicator drawn together from a variety of sources; MOSCOW 12,330,126 +5 % N/A 4.10 82 % 12,302 Source: ZIEGERT Research HOUSING INVENTORY SINGAPORE 5,619,550 +22 % 3.60 2.70 84 % 20,545 / The number of construction completions in MELBOURNE 4,645,327 +34 % 2.90 9.30 70 % 8,734 multi-story residential units has been rising

1 2014 2 City of Berlin rapidly since 2012. More than 8,800 residential * A metro-region is the highly dense area around a metropolis that also extends beyond that city’s limits. units were completed in 2016, four times the The ex-urban area is closely interlinked with the core metropolis in functional terms. Sources: Knight Frank Research, Amt für Statistik Berlin-Brandenburg (Office for Statistics Berlin-Brandenburg), number completed in 2012. This, however, Douglas Elliman, Gutachterausschuss für Grundstückswerte Berlin (Panel of Experts for Property Appraisals Berlin), does not suffice to cover the ever higher Molior, Oxford Economics, Urban Redevelopment Authority (URA), SingStat demand. / Building activity is especially high in Mitte, Treptow-Köpenick and Pankow. The enormous demand and a sufficient number of potential sites are both reinforcing this trend. RESIDENTS VS. RESIDENCES / By 2030, if population inflows continue unabated, almost 194,000 new residential The comparison shows: Population is still growing faster Population Residential units than the number of residential units. units will be needed in Berlin. / According to the regional planning office, the Landesplanungsabteilung, for Berlin-Branden- 110 burg, potential inner city sites for subsequent 8,863 Completions 2016 densification (“brown-field up-zoning”) offer 105 room for more than 50,000 residential units. 21,119 Building Permits 2016 100 MARKET VOLUMES

/ In spite of lower turnover in 2016, sales for 95 fully and partially owned residential proper- 2005 2010 2016 2020 2025 2030 ties grew by 13 % to 5,920.7 million €. / A condominium in Berlin is much more afford- Indexed development of population and housing inventory: Index 2005 = 100 able than in other metropolises. This also Permitted and completed residential units in multi-unit construction (new residential structures with three or more units); Source: Amt für Statistik Berlin-Brandenburg (Office for Statistics Berlin-Brandenburg), Senatsverwaltung für Stadtentwicklung und applies to the luxury segment: One square me- Umwelt Berlin (Senate Administration for Urban Development and the Environment Berlin) ter of a high-end apartment costs four times as much in New York as it does in Berlin.

6 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 7 BERLIN OVERVIEW INCOME / The average monthly net household income was around € 1,775 in 2015, making PRICES it much lower than the same figure for other large German cities. / Since 2010, incomes have grown the most in Pankow and Treptow-Köpenick, in each Residential property sales rose by 13 % from 2015 to 2016, neighborhood by 17 %. and this despite slightly lower figures for turnover. / At the moment, 27 % of all Berlin households This underscores strong pricing growth. could finance a condominium costing up to € 340,000. / The number of higher earners (those with a monthly net household income above € 3,200) in Berlin has grown by 3.4 % since MEAN PRICE FOR CONDOMINIUMS SOLD last year, the strongest showing being in CONDOMINIUMS SOLD ACCORDING TO PRICE CLASSES Lichtenberg at around + 14.1 %. Average sales prices have risen in all neighborhoods Sales figures are increasingly shifting towards since 2012. Prices outside Berlin’s S-Bahn-Ring have higher price segments. From 2015 to 2016, PURCHASE PRICING also started to increase significantly. the average price obtained for a first sale rose by 6.3 %. / At 9.6 %, purchasing prices have increased much more from 2015 to 2016 than rents Ø-price in €/m2 0 2,000 4,000 change since 2012 did in the same period at only 5.6 %. / Even two years after the introduction of Within the S-Bahn-Ring

60+66+79+94+49+67+62+79+76+0+38+29+64+69+54+49+37+32+51+39+57+44+57+57 rent controls in Berlin, no effect has yet

36+46+46+70+26+46+35+34+36+0+15+29+42+29+19+42+25+21+29+24+25+22+43+49 2,996 Charlottenburg + 67 % 2012 +69 % been seen. Rents on offer have continued < 999 2013 +113 % 3,295 to rise in all neighborhoods, the biggest Friedrichshain 2014 +34 % 2015 increase being 17.1 % in Neukölln. 3,957 Kreuzberg + 73 % +68 % 2016 / In 2016, almost one in every 100 condomin- 1,000—1,999 4,693 2 Mitte +174 % iums sold was priced above 7,500 €/m . This Neukölln 2,450 brings Berlin closer to the level seen in other + 86 % +38 % Ø-Berlin

+24 % German cities with populations of one million +91 %

3,358 +112 % Prenzlauer Berg* or more. +66 % 2,000—2,999 +89 % Schöneberg* 3,101 +73 % +23 %

Tiergarten 3,948 + 131 % +7 % PURCHASING PRICE +40 % +42 %

3,782 +8 % PROGNOSIS Wilmersdorf* + 111 % +29 % +127 % 3,000—3,999 +68 % Outside the S-Bahn-Ring / A further rise in square-meter prices is ex- 1,897 pected for the coming years. However, it will Hellersdorf +26 % +29 % no longer be quite as high across all neigh- +66 % Hohenschönhausen 1,460 +7 % borhoods as it has been in recent years. +25 % 4,000—4,999 +35 % Köpenick 3,219 / After offering prices have increased by almost 10 % annually since 2010, ZIEGERT Lichtenberg** 3,467 Increase in Ø-prices experts are reckoning with a much more First sale Marzahn 2,714 moderate increase until 2019: +5 % per year

5,000—7,499 2 2,431 4,274 €/m is the conservative forecast. Pankow 2015 1,856 / Increased speculation is continuing to drive Reinickendorf 2 4,542 €/m Ø-net household Increase in income groups building lot prices higher in Berlin. Spandau 1,624 2016 income 2015 2005/2015 Even in central locations, this means that 7,500—9,999 2,540 the construction of rental apartments or Steglitz < 1,700 € 2,600—3,200 € Resale condominiums is sometimes no longer 1,971 > 3,200 € Tempelhof 2,403 €/m2 1,700—1,900 € worthwhile. In view of the higher number 2,854 2015 Treptow + 128 % > 1,900 € of tourists and students, micro-apartments 2 and services apartments seem to point 2,202 > 10,000 Wedding + 104 % 2,708 €/m 2016 a way out of this conundrum. But in such 2,846 Weißensee cases, one should also keep up with a 2,852 third-party use strategy. Zehlendorf INCOME DISPARTIES AND

€/m DEVELOPMENT 2 0 % 10 % 20 % 30 % 40 % 2016 2012 The average income of Berlin’s households has increased * Most of the neighborhood’s surface area lies within the S-Bahn-Ring by almost 13 % since 2010. The group of higher earners ** Unusually high pricing level in 2016 due to a large number of sales of with a net household income above € 3,200 has grown high-priced student housing units in the Lichtenberg neighborhood and high-priced Percentage grouping of condominiums sold based on square by a particularly large margin. condominiums in the Friedrichsfelde neighborhood. meter pricing. Square meter prices have not been posted for all Square meter prices have not been posted for all multi-story units sold; multi-story units sold; status of data 16 June 2017; Source: Gutachterausschuss für Grundstückwerte Berlin Source: Gutachterausschuss für Grundstückwerte Berlin Source: Amt für Statistik Berlin-Brandenburg (Panel of Experts for Property Appraisals Berlin) (Panel of Experts for Property Appraisals Berlin) (Office for Statistics Berlin-Brandenburg)

8 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 9 BERLIN OVERVIEW RENTER OWNER- OCCUPANT

Ø-living space per person 36.8 m² 50.5 m² / Only 14.9 % of all Berliners live in owner- occupied units. This is the lowest value for Ø-number of people per unit 1.8 2.1 any German city with a population of CLIENTS Ø-size of unit 65.5 m² 106.2 m² over one million. / Owner households have, on average, a high- Ø-monthly gross rent per unit 494 € — er monthly net income than renter house- RENTERS AND OWNERS Ø-monthly gross rent (excl. 7.67 € — holds. Still, 55.9 % of owner households utilities) per m² of space earn less than € 3,200 a month. This shows that even a lower average income does not preclude the ownership of residential In 2016, Berlin remained a city of renters once again. Living space (per unit) from ... to less than ... m2 property. However, more than a quarter of all households could finance a condominium. Renter Owner / In almost 50 % of all owner households, the Such a move not only serves to prepare for retirement, it also contributes main income earner is over 60 years old. to stabilizing and shaping each neighborhood. < 40 m2 10 % 0 % This means that, in Berlin, property owners are much older than renters. This can be 40—60 m2 33 % 7 % explained, among other reasons, by the longer time it takes to accrue assets. 60—80 m2 37 % 20 % / In 2014, renter households had to use an 80—100 m2 13 % 18 % average of almost one-third of their dis- posable income to pay the rent. 100—200 m2 4 % 21 % / For 80.6 % of ZIEGERT clients in 2016, this was their first real estate purchase. Through > 120 m2 3 % 34 % our consulting work, we have made a significant contribution to asset formation in Berlin. Year of construction Renter Owner / Among property owners, the proportion of self-employed is more than 26 %, much until 1918 88 % 12 % higher than among renters. 1919—1948 81 % 19 % / The overwhelming share of single households lives in rented spaces. 1949—1978 88 % 12 % / Around half of renter households in Germa- 1979—1990 89 % 11 % ny are either striving to purchase property or can imagine such a purchase. The Federal 1991—2000 51 % 49 % government is supporting this goal through home-ownership retirement plans and credit 2001 and later NS 0 87 % union savings plans. There have been further discussions on breaking down the barriers to home ownership, but without any results so far. HOUSEHOLD SIZE CAREER Monthly net household income Renter Owner / Continuing low interest rates are creating The largest proportion of homeowners live in of the main income earner a good springboard for financing home two-person households. < 1,500 € 44 % 15 % ownership. Here the buyer should make sure to lock in a fixed rate for as long as possible Single Two-person Multi-person Self-employed Self-employed 1,500—3,200 € 43 % 41 % households households households over the lifetime of the mortgage. 15 % 26 % 3,200—4,500 € 9 % 20 % Civil service Civil service % 50 % 5 % 13 % 4,500—6,000 € 3 % 13 % > 6,000 € 1 % 11 % Employed Employed % % 68 % 56 % Age of main income earner 17 0 % Worker Worker 26 Renter Owner Renter 12 % 5 % 57 < 30 Years 17 % 0 % 50 % % 30—40 Years 20 % 8 % Results of the micro-census on the living situation in 2014, % 40—50 Years % 18 % 19 % issued in April 2017, and the micro-census on the living situation in 2010. The rate for the rent burden on a household 50—60 Years 17 % 23 % indicates the proportion of the net household income 0 % required to be applied to paying the gross rent (excl. utilities);

25 Source: Amt für Statistik Berlin-Brandenburg 32 > 60 Years 28 % 50 % Owner 43 (Office for Statistics Berlin-Brandenburg)

10 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 11 TABLE OF CONTENTS 26—27 TOWER LIVING Some parts of Berlin are growing upwards. Nikolaus Ziegert explains the quality of life towers offer.

CONDOMINIUM REPORT 28—29 DENSIFICATION Inner courtyards and rooftops offer potential for almost 55,000 apartments — when exploiting it, BERLIN 2017/2018 keep an eye on building codes and local neighborhood interests.

30—31 STAKEHOLDER DIALOG »In future, it will primarily be a matter of planning properties to be socially and ecologically sustainable, this with an eye to the long-term interests of larger groups of users and claimants.«

Alexander Boether, Head of Sustainability and Responsible Investment at ZIEGERT

32 RESIDENTIAL AND COMMERCIAL Commercial space in the ground floor of residen- 40—89 NEIGHBORHOOD PROFILES tial properties has become much sought-after Here you will find the most important facts and and promises good yields, even outside of the figures about Berlin’s various neighborhoods — top locations. from sales figures through projects in planning right down to population forecasts and portraits 33 URBAN ZONES of each of the neighborhoods and their various DEVELOPMENT sub-neighborhoods. SAFE HARBOUR BERLIN TOWER LIVING IN THE SOUTHEAST »This instrument is intended to give PAGES 16—17 PAGES 26—27 PAGES 34—35 municipalities the maneuvering room they need to make living and working 42 CHARLOTTENBURG-WILMERSDORF coexist side-by-side.« 46 FRIEDRICHSHAIN-KREUZBERG Prof. Angela Mensing-de Jong, Docent for 50 LICHTENBERG Design and Urban Planning at the HTW Dresden 54 MARZAHN-HELLERSDORF 4—11 BERLIN OVERVIEW 20 DEVELOPMENT IN INTEREST RATES 34—35 DEVELOPMENT IN THE SOUTHEAST 58 MITTE Demand, supply, prices and clients — There are no signs of any increase in mortgage Berlin is growing out into the ex-burbs, especially Berlin’s development at a glance rates in the medium term. In spite of this, it makes to its southeast. Urban centers along rail lines are 62 NEUKÖLLN sense to exploit the current low interest rate level. particularly appealing out there. 66 PANKOW 14—15 THE FUTURE BELONGS TO BERLIN 21 MARKET FOR RENTAL 36 HOUSE OR APARTMENT? »A strong influx of population, economic 70 REINICKENDORF APARTMENT BUILDINGS The pros and cons almost balance each other out. growth and ultra-low interest rates High demand facing low supply is causing But it’s worth it to keep tabs on future develop- 74 SPANDAU are creating favorable overall conditions ments. market factors to soar to new heights. 78 STEGLITZ-ZEHLENDORF for developing the Berlin property market.« 22 INSTITUTIONAL INVESTORS 37 PROPERTY PURCHASES FOR 82 TEMPELHOF-SCHÖNEBERG The battle to get into projects at the earliest THE SELF-EMPLOYED Foreword by Prof. Dr. Michael Voigtländer 86 TREPTOW-KÖPENICK possible date requires creativity — but certainty When incomes are well documented over the remains the prerequisite. long run, financing for the self-employed is no 16—17 SAFE HARBOUR BERLIN longer an issue at all. »Berlin is a creative and fashionable city 23 POTENTIAL FOR RENTED 90 IMPRINT and widely accepted as the digital and APARTMENTS 38 PARENTS ARE BUYING FOR THEIR CHILDREN cultural heart of Germany.« Lower yields are compensated for by higher gains on resale. Those who buy early are securing economic Paddy Dring, Head of Residential Sales at opportunity for the coming generation. Knight Frank in an interview with ZIEGERT 24—25 NEIGHBORHOOD PROTECTION ZONES Neighborhoods are identifying more and 39 EXCLUSIVE MARKETING 18—19 PROJECT DEVELOPER SURVEY also areas with preservation statutes — now even Only outstanding consulting work will fulfill The sector has an optimistic view of the future. outside the S-Bahn-Ring. the high expectations held by the buyers of However, there are obstacles. luxury properties.

12 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 13 FOREWORD POPULATION CHANGE IN BERLIN

4,200,000

THE FUTURE 4,000,000

BELONGS TO BERLIN 3,800,000

3,600,000 Foreword by Prof. Dr. Michael Voigtländer, 3,400,000 2015 2020 2025 2030 2035 Cologne Institute for Economic Research (IW)

Change in population in Berlin acc. to the Cologne Institute population forecast; Source: Cologne Institute for Economic Research (IW), status December 2016

Several forecasts concerning the potentials offered by Ber- rounding countryside. Although this does not mean that OBSTACLES FOR INVESTORS lin’s residential property market have raised fears of a Berlin will become unattractive, it only means that the reversal in fortunes soon. The German Bundesbank has demand will not be met. And indeed, Berlin is making it dif- »In Berlin, it is not only the population But there is one sizable risk in Berlin: politics. Nowhere warned about a possible overheating of regional property ficult for itself in this respect. Between 2011 and 2015 alone, that is growing: the economy is too. else is there as much vehement resistance to investors as markets, specifically in large cities, and in its spring real over 100,000 apartments fewer were built than the demo- There still are no large corporations here. Neighborhood protection zones (Milieuschutzgebie- estate report the ZIA (German Property Federation) made graphics would have required. By 2035, more than 30,000 here from the German DAX Index, te), pre-emptive public sector purchasing rights, urban explicit mention of a possible reversal in prices in Berlin. new apartments will have to be built. If fewer are built than construction contracts – all these and many more are Large institutional investors on the property market in recent years, then the property market will respond just but Berlin has grown enormously, making the purchase of properties in the capital more diffi- have, however, not let any such talk unsettle them. In fact, a as any market would; if demand exceeds supply, prices will particularly in the IT sector.« cult. The aim seems to be to preserve present structures and majority of those surveyed as part of the IW Property Index go up. hold up the city’s future development. But a change in struc- specified Berlin as the most attractive location for property tures is precisely what is needed to permit economic pros- market investment. Small private investors and owner-oc- SUSTAINABLY DYNAMIC perity and create the freedom to invest in social infrastruc- cupants should also keep an eye on risk, of course, but still ECONOMIC DEVELOPMENT ture and pin-point help to households who need it most. never lose sight of the opportunities. And there are some Therefore, opportunities are good in the long run. In a city But still, the long-term investor will outlive political out there. In Berlin, it is not only the population that is growing; the with population and economic growth, residential and cycles and can hope that rationality will also, someday, Berlin is a growing city. 3.5 million people now live in economy is too. There still are no large corporations here commercial real estate will continue to be attractive. But return to the federal capital. // Berlin, and according to estimates made by the Cologne from the German DAX Index, but Berlin has grown enor- what about the short-term risks people are talking about Institute for Economic Research (IW), that number will mously, particularly in the IT sector. In the past four years now? One thing is clear: the general framework conditions grow to four million by 2035 (see graph). This growth will alone, the number of tech employees has shot up by almost are extremely favorable at the moment: strong population suffice, but will only succeed if enough living space is made 15 %. Many new well-paid jobs have been created in the influx, good economic growth and ultra-low interest rates. available. Otherwise, people will move out into the sur- capital, ones that draw in specialists from both inside and It is well possible that these conditions could deteriorate outside Germany. Berliners’ purchasing power rose by again. An abrupt up-tick in interest rates, however, seems more than 16 % from 2010 to 2015, and the gap with other unlikely: The ECB will raise them only very slowly and cau- western German cities has continued to narrow. When tiously at best as otherwise the public and private budgets incomes and population grow, rents rise too. And Berlin in southern Europe could be negatively impacted. Further- »In a city with population and can also benefit in the long term from structural changes. more, interest rates are so low because all over the world economic growth, residential and Across the globe, cities are developing into ever more signi- more is being saved than invested – here too, no sudden ficant engines for economic growth as knowledge-inten- shift is expected. The good economy and the influx of peo- commercial real estate will sive services become more and more important. Cities play ple could, however, come to a more sudden end, though continue to be attractive.« FOREWORD BY a crucial role in this change because customers and special- this would not necessarily put a damper on the upward Prof. Dr. Michael Voigtländer, ists come into close contact with each other in the urban move in prices. Due to the huge lag in construction activity, Cologne Institute setting. As Germany’s largest city, Berlin can take special no change here is expected either. for Economic Research (IW) advantage of this.

14 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 15 Germany with a youthful and vibrant dynamic. Today the For those seeking a more permanent move, Berlin offers city is one of the most important centres for contempo- outstanding state education as well as a number of private INTERVIEW rary art in continental Europe and is a true culinary international schools. It has affordable but first rate medi- trendsetter. cal facilities. Plus, English is the city’s second language Given my passion for real estate, I am particularly int- employed frequently across all walks of life, from business, rigued by the fascinating blend of modern and historic to education and healthcare. This makes communication so architecture. Add to this the city’s competitive property much easier than in many other places.« SAFE HARBOUR prices, its enviable lifestyle and low cost of living and I think there are few cities left that can compete on all Have you noticed any changes lately? levels.« An interview with Paddy Dring, PADDY DRING »What I have noted is that, regardless of How do foreign buyers view Berlin’s housing market their nationality, our investors are very sensitive to price Head of International Residential Sales at the moment? trends and the location of their potential investment is at Knight Frank critical, especially those who are looking to hold the asset PADDY DRING »Berlin has definitely come under the long-term. spotlight of investors over the past two or three years. Overall, demand in Berlin is robust. Well over half of Both buy-to-let investors and those looking for a city- the buyers originate from Berlin or elsewhere in Germany based second home are seeking a centrally-located pro- and from an international perspective we are seeing a grow- perty which is easily managed or maintainable. Compared ing number of enquiries from Asian buyers. to other European gateway cities, Berlin is well-positi- Prices in Berlin have strengthened over the last five oned in terms of pricing, and offers strong tenant demand, years from a low level. Add to this Germany’s great econo- good market transparency and political stability. mic stability and it’s easy to see why Berlin is increasingly deemed a safe haven, even for buyers from countries where capital controls are in place and for buy-to-let investors. Given the city’s homeownership rate of less than 15 %, strong tenant demand, and the availability of cheap financing, the trend to invest in Berlin is likely to persist.« REAL ESTATE SEARCHES IN GERMANY — TOP 10 NATIONS How much capital are clients prepared to commit?

1 UK 6 Turkey PADDY DRING »According to our analysis, international 2 Ireland 7 Hong Kong buyers are focused on the ¤ 1 m – ¤ 5 m price bracket, with a notable trend toward smaller units. Buyers are increa- 3 Russia 8 India singly looking to diversify their property portfolios and 4 USA 9 Norway spread their investments across a larger number of coun- 5 Singapore 10 Austria tries and currencies than previously. At the same time, equity stakes are getting smaller. Source: Knight Frank Global Property Website Buyers are being shrewd in taking advantage of favourable finance terms to leverage their investments.« // Liam Bailey, Sven Henkes, Nikolaus Ziegert and Paddy Dring (ltr) at the announcement of the ZIEGERT and Knight Frank partnership CITIES COMPARED

How many square metres of prime property € 1 m buys across the world

BERLIN IN NUMBERS Berlin features prominently in the 2017 WEALTH Monaco 19 REPORT produced by our colleagues at Knight Frank. As New York 27 19 % a result of its recent strong price growth, the city current- London 31 of all students in Berlin come from abroad. ly ranks 13th in their Prime International Residential Index which tracks the price of luxury residential prices Zurich 58 across 100 markets worldwide. Such growth combined 11 Million Rome 82 tourists visit Berlin each year. with the launch of Mediaspree, a new urban development project boasting a prime waterfront position in the city, is Vancouver 92 helping to raise the profile of the German capital in the 31.1 % Berlin 97 of all German start-ups chose Berlin as eyes of global investors and occupiers alike. Istanbul 107 the location for their headquarters. Mr Dring, what is your impression of Berlin? Madrid 149 Source: Knight Frank Research

PADDY DRING »Berlin is a creative and fashionable city Currency conversion based on each exchange rate dated 30. 12. 2016; and widely accepted as the digital and cultural heart of Source: Knight Frank Research, Douglas Elliman

16 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 17 SURVEY MARKET AND COST

HOW HAS THE SUPPLY OF HOW HAVE THE COSTS BUILDING LAND CHANGED?* FOR THE FOLLOWING ITEMS ASKING BERLIN’S * in the past five years CHANGED?* * in comparison to last year PROJECT DEVELOPERS much improved 0 % Land +24 % improved 7 %

Building permits take longer unchanged 6 % Construction +11 %

worse 40 % Financing much worse 47 % +7 %

0 % 5 % 10 % 15 % 20 % 25 %

For this year’s Condominium Report, ZIEGERT carried POLICY AND ADMINISTRATION BUYER BEHAVIOR out its first-ever survey of the 100 largest develop-ers in Berlin, asking them about the current prospects and chal- HOW HAS STAFFING AT DO BUYERS HAVE MORE WHAT AMENITIES lenges facing residential projects in the capital. The results reveal an industry that basically views the future BUILDING PERMIT OFFICES SPECIAL WISHES?* HAVE BECOME MORE with optimism, but still recognizes serious challenges CHANGED?* * in comparison to last year IMPORTANT? from both political and economic conditions. Almost * in recent years three-quarters (73.8 %) of the companies surveyed are Balcony 53 % planning further residential construction projects in Ber- improved lin, including a number of medium-sized and large-scale 6 % Rooftop terrace 20 % projects already in preparation. By the same token, respon- Elevator 40 % dents said that the supply of building lots is getting scar- worsened YES NO Underground parking 27 % cer, and both land and building costs have posted notice- 7 % 93 % Open concept kitchen 27 % able increases. Furthermore, companies stated that staffing 65 % at permitting offices, measured in terms need, has wors- Compact floor plan 80 % unchanged ened in recent months, also that the period needed to pro- Low-barrier floor plan 13 % cess building permits has grown longer over the past years. 29 % This means that politicians still have a lot to do to accel- erate private residential construction in Berlin. //

HOW HAS THE PROCESSING MARKET AND PROSPECTS TIME FOR BUILDING PERMITS CHANGED?*

* in recent years HOW DO YOU SEE THE PRICES HOW WILL DEMAND DEVELOP AND DEMAND FOR CONDOMINIUMS IN THE FOLLOWING shorter DEVELOPING? SEGMENTS/LOCATIONS? 0 % 0 % 5 % 10 % 15 %

longer 28+44 Suburbs 32+56 88 % Price High-rises Demand unchanged Micro-apartments 12 % Strong rise In the coming 12 months Single-family houses Unchanged In the coming 2 years

18 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 19 The noticeable rise in general inflation to values approa- In addition, the rising age of the population in core Europe ching the present limit of 2 % is not seen as sustainable by also speaks to a sustained pressure on interest rates in the the ECB Council because the pressure on core inflation Euro-area. Namely, it entails a long-term fall in productivi- remains restrained, and no convincing up-trend has beco- ty and the demand for goods (except in the health sector), me visible. There is also no need for a change due to eco- investment and credit, while at the same time maintaining MORTGAGES WILL REMAIN nomic trends within the Euro currency area. According to a high supply of capital. ECB estimates, the economy here has increasingly consoli- dated in recent quarters. At the same time, the risks for a EFFECTS ON PRIVATE AFFORDABLE FOR slowdown in the Euro-area economy have diminished. REAL ESTATE FINANCING In other words: With the exception of the financial crisis rocking the public-sector budgets in the southern The question as to what these forecasts mean, for instance THE FORESEEABLE FUTURE Euro-area, the banking crisis in Italy and worsening eco- for private real estate buyers and borrowers, remains nomic conditions in Italy and Greece by name, everything open. Because no one today can say when the macro-eco- seems to be going well. nomics or the politics will change, ZIEGERT financial consultants are presently advising clients to take advantage of these low interest rates and agree upon a fixed At these current interest rates, mortgage rate that lasts as long as possible. // even just a few percentage points could mean a huge increase in financing costs. But at the moment, this does not look to be the case.

HOT GOODS: The longer this low interest rate environment continues, PUBLIC DEBT TO the greater the expectation that something has got to give, REMAIN AFFORDABLE RENTAL APARTMENT BUILDINGS and soon. Warnings that property buyers should not neglect the amount of remaining principal and the risk of an inte- In the Euro area, however, base rates will in all likelihood IN BERLIN ARE IN HIGH DEMAND rest rate hike when planning their finances are becoming remain unchanged. The prime financing rate continues to more frequent. On the other hand, reports from the Ger- be 0 %, and is slated to remain at this level, according to the man Bundesbank and declarations by the ECB Council are ECB, until far beyond the time horizon for the net purchas- still not giving any signs of a reversal in the trend of mone- ing of southern European state-issued bonds. This means INVESTMENT FOCUS ON The main thing: a building. Anyone presently on the lookout tary policy. that as long as Italy, Greece and other Euro nations are still for an object with rental apartments in Berlin hardly has Since the middle of last year, interest rate increases threatening to collapse under the burden of higher interest LIVING IN GERMANY 2017 anything to choose from. In comparison to the consistently on long-term capital markets, especially in the US, do rates, there will be no reversal in the trend for financing EY survey among 135 investors: very high demand, only very few apartment buildings are on indeed indicate some anticipation of a change in the trend. costs. This will apply for as long as inflation does not signi- »Which German cities are especially in your investment focus for 2017?« offer. The prices are moving in lock-step. The focus of the In the US, interest rates will rise a bit, also because the in- ficantly exceed the targeted upper limit of 2 %. But neither offerings has shifted in recent years from 20–25 times the frastructure program the administration has announced the ECB nor the Bundesbank see any signs of that hap- net rent (excl. utilities) to 25–30 times that amount. In will entail further public-sector budget deficits. pening either. Berlin 15 % much sought-after locations such as Charlottenburg, Dusseldorf 11 % buyers even have to reckon with 35 times that rental

Frankfurt 14 % amount, the same for Neukölln and Schöneberg. Whereas DEVELOPMENT IN BASE INTEREST RATES in Neukölln, the often enormous potential for rent increa- Hamburg 10 % ses is spurring the fantasies of those offering properties, in Cologne 10 % Schöneberg the blend of alternative culture and bourgeois Base rate Euro-area Base rate USA (Fed) solidity is tempting to a lot of prospective buyers. One also Munich 11 % 6 % has to add to this that the buildings are often extremely spa- Stuttgart 9 % 5 % cious. “Altbau,” the older structures, are popular, and will Leipzig / Dresden 11 % remain so for the foreseeable future, especially if the house 4 % offers possibilities to build out the attic space. Rent cont- Nuremberg region/ 8 % rols and neighborhood protection zones (Milieuschutzge- 3 % Erlangen/Fürth biete), on the other hand, have not shown any effect on pri-

2 % cing so far. // Source: EY Real Estate Trend Barometer 1 % Immobilien-Investmentmarkt 2017

0 % CONTRIBUTED BY 2000 2005 2010 2015 2017 Rita Friedberg Head of Global Sales at ZIEGERT Status: 27 June 2017 Source: European Central Bank (ECB), Federal Reserve System (Fed)

20 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 21 GUEST ARTICLE THE POTENTIAL OF INSTITUTIONAL RENTED APARTMENTS

INVESTORS: ON THE Those buying today as a capital investment should not let themselves get scared off by low rental yields. LOOKOUT TO POSITION They should rather anticipate the future development THEMSELVES BEST of their investment.

When it is a matter of interesting projects, even The yield generated from rented apartments in Berlin is Neukölln, Kreuzberg and Friedrichshain. And for renovated frequently around 1.5 to 1.7 %. One reason for this is the apartments the surcharge can amount to more than 50 %. pros are getting creative. Many are trying to assure they get increase in purchasing prices. But another is that politi- »When rent controls negatively impact your investment into projects as early as possible in the process. cians are doing everything in their power to put a lid on results today, such measures will not necessarily lead to a apartment rents in Berlin. For those purchasing rented lower total return,« says Josef Paffrath, responsible for the apartments, rent controls and neighborhood protection sale of rented apartments at ZIEGERT. »However, the deci- zoning at first mean a limitation on their initial opportuni- sive returns will not truly be realized until the apartment is ties for revenue. In the long term, however, these measures sold, probably empty and renovated.« The financing costs in help grow the value of condominiums already partitioned. all this should hardly lead to any taxable losses. Interest on Neighborhood protection and the permitting requirement the purchase of rented apartments is actually tax deduct- Residential real estate often tops the shopping list of Ger- The lack of suitable projects is leading to changes in demand for sub-partitioning it entails reduces the number of avail- ible, but usually comes under rental income today. »There- man institutional investors. This can be seen in the portfo- behavior. More and more institutional investors are trying to able condominiums on offer, something that allows the fore, it is still worth it in Berlin to buy rented apartments with lio analyses of specialty fund managers as well as in read- enter into new projects at the earliest possible time, for prices for occupancy-ready apartments to rise dispropor- a large proportion of it financed in the mortgage and a fixed ing the daily news of purchases or in the letters of intent instance by employing mezzanine financing to initiate the tionately. interest rate for as long as possible.« from the insurance sector, to name just a few. The trend is project, i.e. project financing tied to a pre-emptive right to In Berlin, the price gap between rented and unoccu- And because Wilhelmina era apartments, for instance, towards institutional investors wanting more and more purchase, or by buying into the project before completion, pied apartments is around 20 %, much larger for older buil- cannot be reproduced, one can reckon here with dispropor- real estate. what is called a forward deal. This trend is significant in the dings from Germany’s Wilhelmina era in such hip areas as tionally high capital appreciation. // 65 % of the companies surveyed in the annual Insur- economic hubs of Munich, Hamburg, Frankfurt and Berlin, ance Study by EY plan to purchase residential properties in and for projects with established developers and partners the current year. Therefore, residential, together with retail, who can reliably assure orderly completion. This means is the second most popular type of usage, and stand alone in that institutional real estate investors are not giving up on DEMAND FOR RENTED APARTMENTS that not one single insurer is considering sales from its resi- their requirements for security, instead they are creatively 80+77+77+73+70+67+66+66+64+61+61+58+56+56+55+54+53+50+48+48 dential portfolio. searching for the best position in each case when it comes Neukölln to asserting themselves in their competition for the best Wedding Tempelhof HIGHLY SECURE REVENUE STREAM FROM projects. // Schöneberg APARTMENTS IN LARGE GERMAN CITIES Kreuzberg Reinickendorf Britz Throughout any and all changes in population or the eco- Tiergarten nomy, even with the risk of noncollectable rents – apart- Prenzlauer Berg ments in large German cities will still offer a secure Mariendorf Treptow revenue stream for the foreseeable future. Berlin occupies Steglitz a special position here by reason of its above-average eco- Friedrichshain nomic growth, its mostly young population and its increas- Charlottenburg Friedenau ing importance as a tech hub, on the international stage as Wilmersdorf well. The demand from investors can also be seen in the Lichtenberg rising prices for global projects and portfolios. If the sales Buckow Lankwitz price once ranged around 20 times the annual net rent Spandau (excl. utilities = 5 % rental yield), today this figure ranges CONTRIBUTED BY 0 10 20 30 40 50 60 70 80 more and more often around 25 times that amount (= 4 % Michael Seeberg, rental yield), and this also for smaller objects costing Chief Investment Officer around 15 million Euros. at ZIEGERT Ø-number of contact inquiries for each rental apartment (by neighborhood); Source: ImmobilienScout24 market data

22 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 23 There are at present around 40 areas with social conserva- At the moment, about 20 % of Berlin’s residential inventory tion status in Berlin: all signs point to more. In these so-call- is affected, although in Friedrichshain-Kreuzberg the 50 % ed “Milieuschutzgebiete,” many modernization measures, level has long been surpassed. This neighborhood has the among them adding a second balcony, a guest powder-room, corresponding wish that neighborhood protection should in-floor heating and any change in the floor plan ofthe be coordinated across the city so that the formal prerequi- NEIGHBORHOOD rooms in the apartment, require a permit and are thus sites for applying these special building codes continue to effectively impossible. The same applies in those areas to be implemented. Other neighborhoods, among them Lich- converting rental units into condominiums. The idea is to tenberg, Reinickendorf and Treptow-Köpenick, are prepar- PROTECTION IN BERLIN maintain as large an offering as possible of favorably priced ing for further neighborhood protection zones, something rental apartments. that will in turn increase demand and designation pressure Protection areas exist mostly in Friedrichshain- in adjoining areas. To protect Berlin’s renters from the Kreuzberg, Pankow, Mitte and Neukölln. But neighborhoods outside the S-Bahn-Ring have also been bestowing NEIGHBORHOOD PROTECTION ZONES rising cost of living, owners’ rights are cut. such status since autumn of 2016. OUTSIDE THE S-BAHN-RING TOO Politicians are vigorous when it comes POLITICIANS WANT TO KEEP BERLIN As a result, this means that, in the medium term, further to fighting re-partitioning and investments. A CITY OF RENTERS zones will be designated, even if not as many as in the first half of 2017. Long-term forecasts are difficult. After five The background for such steps is the enormous pressure years, there is usually a check as to whether the prerequi- on Berlin’s rental markets, the low level of new residential sites for neighborhood protection are still being met. In construction, the strong influx of new people and the high such cases, it can of course occur that the conditions in rate of renters among the populace, around 85%. For the one area or another no longer exist because the social present parties in city government (SPD/THE GREENS/ structure has continued to change. Whether this in one

PANKOW THE LEFT), Berlin is a city of renters and should remain case or the other actually leads to the designation being KEY so. This is why securing the interests of renters is the great- removed, that depends on the courage of the experts and est political commandment, and available legal remedies the decision-makers. That is because, within this time frame, Social conservation areas have to be taken to protect renters from rising rents in city hardly anyone could expect an easing of the pressure on

S-Bahn rails centers. inner-city residential markets. WEDDING Autobahns One possibility they discovered in their efforts was For investors, neighborhood protection means more

PRENZLAUER Federal highways the denial of permits for modernizations and conversions complications in the processing of permits. This is be- BERG based on the Building Code (Para. 172). Preventing nega- cause, besides the existing neighborhood protection tive urban structural consequences caused by a change in zones, there are also areas in which the prerequisites for population structures entitles them to limit owner rights applying neighborhood protection measures are being in the targeted areas. The grounds for the need for conser- checked, in which building permits for modernizations vation are usually given in the various expertises as dyna- can be put on ice for up to twelve months. This means that, mic changes in the surroundings and the considerable in case of doubt, an investment has to be worthwhile even

Alexanderplatz FRIEDRICHSHAIN influx of high-income households (for instance with child- without modernization and individual sale of each apart- ren or academicians) and the potential increase in value ment. On the other hand, the supply of condominiums Brandenburger Tor they bring with them. falls so that those who can still offer condominiums in a The word “rent” actually is not mentioned in the neighborhood protection zone suddenly have a very rare codes from these special building rules, but in reality how- commodity at their disposal. The same also applies in a ever, their use has the aim of keeping the offering of rental similar way to areas adjoining a neighborhood protection CHARLOTTENBURG apartments as large as possible and at rents as reasonable as zone. // possible, and thus the feared increase in values has to be counteracted somehow. This means in the inverse that all modernizations applied for are judged by the neighbor- KREUZBERG hood authorities from the vantage point of possible rent increases – and that is why they are usually not approved. An exception is made for elevators. So that elderly people are not forced from their apartments by neighborhood pro- OBERSCHÖNE- tection measures, most neighborhoods approve adding ele- Tempelhofer Feld NEUKÖLLN WEIDE vators as long as they do not substantially contribute to living costs in the building.

SOCIAL CONSERVATION AREAS Fixed social conservation areas (Soziale Erhaltungsgebiete) in Berlin (status 26 June 2017), further areas in planning

Source: ZIEGERT Research, Senatsverwaltung für Stadtentwicklung und Umwelt Berlin (Senate Administration for Urban Development and the Environment Berlin) 24 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 25 Mr. Ziegert, high-rises are one of the major topics of them take years and only move forward in very small in Berlin, not only in terms of the residential market, steps. Furthermore, the question arises again and again as urban planners are also entering the fray with a to where high-rises should and can be built. Indeed, there INTERVIEW variety of proposals. What would you like to hear are tangible plans for the area around the Alexanderplatz, from the planners? the banks of the Spree in Friedrichshain-Kreuzberg and in the City West, but beyond them, Berlin has no idea how to proceed.« NIKOLAUS ZIEGERT »Pragmatism dominates over far- sightedness in many plans. Where there is no room, LIVING WITH A VIEW: In your view, what is now the best location for and more and more people want to live in the innercity, high-rise projects? you just have to build up. But that is not a convincing ar- NIKOLAUS ZIEGERT gument for anyone, certainly not in a city that has already had its experience with high-rises in large residential NIKOLAUS ZIEGERT »Mediaspree surely is presently projects. What is missing at the moment is a vision and demonstrating the strongest features for growth. While ABOUT HIGH-RISES thus a sense for a design and architectural language that at the Alexanderplatz, no one really knows how high-rise will be adequate in the future. Berlin is on the best path to living is supposed to work, but to the left and the right of becoming the most important metropolis at the heart of the Spree River, the target audience is already there. This IN BERLIN Europe, and that by quite a bit. What is already a fact po - is where the people are for whom the city is a synonym for litically, is slowly gaining importance economically, and social exchange and long travel to work or leisure activ- driving to express itself culturally every day: all of these ities is simply a waste of their time. They work for start-ups changes would finally like to take shape architecturally. or companies who have set up their headquarters around This means that I wish an architecture that expresses the the Mercedes-Benz Arena, they go to the clubs upon which diversity and the dynamic that is Berlin, also in the height Berlin’s reputation as the party capital is based. These mod- of buildings. That is why we need more individually de- ern big-city slickers are united in recognizing that tenant signed high-rises in Berlin.« floors are much quicker to travel through in an elevator than 10 km in Berlin’s city traffic. And they appreciate it But still, high-rises are only being built slowly when saving time and living this lifestyle goes hand-in- in Berlin. Why is there only a handful of projects hand with sustainable living and taking up less space.« at the moment? For you, what is the best argument for living NIKOLAUS ZIEGERT »It certainly is not a matter of de- in a high-rise? mand. We were able to sell the 49 apartments being created out of a former office tower in Berlin-Wilmersdorf NIKOLAUS ZIEGERT »The daily feeling of being above in a few months, and we found a prospective buyer for the daily routine with all its obstacles, and just one litt- the penthouse in just a few weeks. The reason for the low le bit closer to the sky, those are qualities you only find supply is to be found in the permitting process more in a high-rise. In addition, there is an unobstructed than anything. There has hardly been living experience view of a city that is constantly changing. For those with high-rises in Berlin, and the authorities and devel- who want to experience and celebrate the urban life- opers are acting cautiously as a result. Therefore, the de- style, they will feel more at home in a high-rise than cision making processes are comparatively long, some anywhere else.« //

»Berlin is the city of the future. As a great metropolis it needs high density, tall buildings that create pleasure and perspective for its residents. Sustain- able cities like Berlin cannot exploit low buildings in nature but must bring nature into its high-rise future.«

Top architect Daniel Libeskind

INTERVIEW WITH Nikolaus Ziegert, Owner and Managing Director Visualization of the project UPSIDE BERLIN

26 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 27 53,759 apartments could be built in Berlin if all potentials Anyone wanting to develop a courtyard lot would therefore for densification in the city were used. With this incred- be well advised to discuss the spaces needed by the neigh- ible number from the State Planning Division for Ber- bors and, if possible, take account of these. Private gardens lin-Brandenburg, there is certainly also a little bit of fanta- in front of the ground-floor apartments, where neighbor- WHY IT IS sy included, for instance that perhaps the Tempelhofer hood children once used to play, get people revved up, Field, the Elisabethaue and other large open spaces in whereas a common vegetable bed can be a place to meet Berlin could be built on and, in spite of this, that the major- and socialize. WORTH COURTING ity of apartment seekers could be accommodated within the city limits. TAKE ACCOUNT OF But this figure also shows the enormous potential sur- NEIGHBORHOOD INTERESTS BERLIN faces hidden between the houses and in the back courtyards of this city, especially if densification of the urban landscape Green roofs are also no replacement for wide lawns, but is also the declared goal of Berlin’s urban development policy. they still make a contribution for a better micro-climate in the courtyard. Not visible from street level, residential THE POLITICAL WILL IS THERE To protect the interests of neighbors, there is also a construction is still possible on many lots. The owners whole series of building codes in Berlin, among them one »Adding new floors, building out attics and increasing densi- about inter-space easements, according to which the dis- want to take advantage of every potential. fication, supplements residential inventories. Built structures tance between an existing building and a new one has to that do not optimally exploit surface resources, such as super- be at present 0.4 times the height of each story. In Berlin’s markets or over-dimensioned retail spaces, find a more inten- inner courtyards, therefore, there are often terraces built sive use. Berlin can thus create new urban qualities and iden- up step by step with their upper stories set back. This cre- tities, more and more at the edge of the city too,« so it says in ates light-filled apartments, even in the lower floors, keeps the Urban Development Plan for 2030. distance to the neighbors and allows the creation of interest- Another thing that speaks for better exploitation of ing floor plans with large terraces and balconies. Such potential spaces is that Berlin’s inner courtyards are striking and unmistakable architecture is also an impor- perceived to be peaceful oases in the middle of a pulsating tant argument when others have scruples about densifica- metropolis, and children, for instance, are able to play tion. Above all, when a new building is designed to hide an there in safety. Also, part of the required infrastructure is ugly fire protection wall, the courtyard can only benefit usually already in place. In addition, though, larger inner from such planning. // courtyards are rare reserved spaces in much sought-after locations: Berlin is popular primarily where it is also particularly densely built up, in Friedrichshain and Kreuzbe- rg, in Schöneberg and Mitte, where densification is often the only opportunity to build apartments. However, the few free spaces there are come under especially vehement defense from those living there.

New construction in inner courtyards offers residents idyllic calm (example of a project on Schinkestraße 3 and Meraner Straße 18)

28 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 29 will primarily be a matter of planning and constructing real estate projects with an eye to the long-term interests of larger groups of users and claimants,« says Alexander Boether, Head of Sustainability and Responsible Investments at ZIE- FROM GERT. »Thinking about sustainability when developing projects therefore has to begin earlier and be more inclusive than CONFRONTATION it has been. This is precisely where we are leveraging our new consulting offer.« TO DIALOG The topics of the new ZIEGERT offering range from support during the drafting of sustainability pro- grams to sustainability reports and consulting services for COMMENTARY sustainable development in the neighborhood. »As an intermediary and consulting company, our competency lies by Stephan Bohle, primarily in bringing people and ideas together and develop- futurestrategy© ing mutual concepts,« says ZIEGERT Managing Director strategies for sustainability Sven Henkes. »In this regard, sustainability is an essential field of endeavor for us, now and for the future.« //

Berlin, we have a problem. 20,000 new apartments have to be built every year to cover the medium-term demand. But instead of local representatives from politics, the real estate sector and society sitting down together and finding solutions, they are all fixed on confron- SEARCHING FOR tation. Politicians are concentrating on building 6,000 municipal apartments annually through their residential construction companies. But DIALOG, FINDING who will build the rest? Private builders have cut themselves off from any open dialog and are shifting their construction and investment THE FUTURE activities to the suburbs. Representatives from civil society are spending their time protesting any changes at all. The city is an indispensable resource the real estate It is high time to switch from confrontation to dialog. Politicians should no longer sector does not create itself but to whose insist upon their maximum demands (neighbor- maintenance and development it can make a hood protection, Berliner Model, etc.) and become able to react more flexibly to the given significant contribution. situation (in the permitting process, property taxation, etc.). The private real estate sector should not put all its cards on profit maximization alone. It has long known about sustainable, i.e. future- Although the change in the value of real estate is also influ- the Boxhagener Neighborhood”), the sustainability team at Sven Henkes (pg. 30 and 31, below) oriented economics, that one has to pursue enced by the acceptance of locals and all those involved in ZIEGERT has – unique in planning to this extent – initia- and Alexander Boether (pg. 31, above) in social, cultural and ecological goals to the same the city, investors and developers continue to focus on indi- ted projects in education, integration and culture, together a dialog with local people. extent as monetary goals. Otherwise, the sector vidual projects. with those involved in local politics and civil urban society will saw off the very limb it is sitting on. And So that new structures no longer land like UFOs in (www.querbeet.berlin). those involved in social purposes should convert their respective neighborhoods where they stoke local pro- In spring, ZIEGERT invited representatives from their fundamental protest against everything into tests, ZIEGERT is entering into a dialog with those invol- politics and companies (first and foremost the large utili- constructive criticism. Not only the neighbors, ved, those who are directly affected by the plans and who ties), architects and developers, associations and repre- but also those searching for living space are all can give input on improving them. With “querbeet – Initia- sentatives of citizens’ groups to the Forum Factory in Ber- part of urban society. // tiven für den Boxhagener Kiez” (“querbeet – Initiatives for lin-Kreuzberg. »The discussion showed that in the future it

30 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 31 GUEST ARTICLE

RESIDENTIAL AND “URBAN ZONES” – COMMERCIAL UTOPIAS OF ORDER FOR A LIVELY QUARTER

»We want to use the new category of “Urban Zones” (Urba- function new blended-use areas will have to fulfill in ne Gebiete) to give municipalities an instrument with which future as a counterweight to the strict separation of living they can make possible the creation of blended use areas in and working that has been the rule to date. the city, in particular the center, with short travel times,« Because the characteristic “urban” means more than says Barbara Hendricks, German Federal Environment just “cityfied” and “densely built-up,” it becomes a matter Minister. of neighborhoods with structures made up of buildings The “Urban Zone” is a response by legislators to the and open spaces that foster – on a small scale and as equal lack of space for building housing in Germany’s city cen- partners – a coexistence of residential and commercial in ters. As an instrument, it is intended to grant municipal- all their diverse forms, that make integration part of nor- ities the maneuvering room they need to make living and mal daily life, see to a better work-life balance and mini - working coexist side-by-side and overcome any conflicts mize traffic volumes. about usage that may arise. Not only a coherent and clear guideline in planning The new zoning category enacted by the Federal codes is needed here, but also fantasy in design and imple- Parliament (Bundestag) in March 2017 can be seen as a mentation that takes account of the needs of “weak users” combination of mixed-use and special residential zone to to the same extent that it also allows for development and serve residential purposes but also the accommodation of availability of affordable residential and commercial Ground-floor commercial spaces in multi-family structures international investors are finding particularly exciting, social, cultural and other establishments that do not sub- space. // have developed into something of a necessity in the past although German investors are also discovering partial stantially detract from residential usage. By raising few years. The reason for the good marketing success here commercial ownership as the way to go. permissible emissions values and construction densities, has been the growing interest among capital investors and And owner-occupants are booming too. Many, mostly the leeway for planning has been expanded significantly. business people in functional spaces at locations close to freelancers, are on the lookout for suitable offers to purchase The aim is to try and use legal frameworks and technical the city center. their own law offices, practices and laboratories. They are thresholds to carry out something that has, until now, only CONTRIBUTED BY using favorable interest rates to acquire partial owner-ship been possible through grandfather clauses or continu- Prof. Angela Mensing-de Jong, Docent for Design and Urban A SYMBIOSIS WITH HUGE POTENTIAL and improve their equity position instead of paying expen- ances in the living and growing urban structures of a city. Planning at the HTW Dresden, sive rents. A further group of buyers is made up of political Whether the planned exclusion of business and Advisory Committee member And it does not always have to be right along Main Street. organizations, associations and foundations who – faithful office buildings can serve this goal is certainly up for dis- at ZIEGERT Rents there have reached a level that has resulted in more to their natures – are more interested in locations near the cussion. Unfortunately, politics and planning over the past and more traders deviating away from the A-1 locations to center and can purchase spaces with a high portion of their 25 years have failed to clarify with scientific support, pub- those rated B. In doing so, they have raised the pressure own capital. For this clientèle, an address near the levers of lic participation and practical attempts which social on some small entrepreneurs and freelancers: 125 ¤/m2 in political power is what counts. an A-1 location means that in locations considered B- In summary: Those who think in a timely manner rated there will also be a number of prospective renters about how to design their product on the ground floor can from the widest variety of sectors: physicians, attorneys, earn good money with partial ownership of them in today’s Purely residential Core area Urban Zone Commercial zone retailers, etc. Berlin. // day 50 dB (A) 60 dB (A) 63 dB (A) 65 dB (A) Large newly-built spaces are sought after primarily Emission guidelines night 35 dB (A) 45 dB (A) 45 dB (A) 50 dB (A) by grocery retailers, but also by drug store chains. Be this as it may, the long-term contracts usual for such tenants GRZ 0.4 1.0 0.8 0.8 and the adequate rents are making larger ground-floor Amount of structural usage GFZ 1.2 3.0 3.0 2.4 units especially interesting. Initial yields of 5 % and more over at least 10 years are an argument that mostly Source: Para. 6A advisory draft No. 6.1 TA Noise dated 7 July 2016

32 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 33 BERLIN IS PRIMARILY GROWING OUT INTO THE SOUTHEAST SUBURBS

On the lookout for affordable apartments, mostly young families but also some older people are being attracted to the suburbs. Urban centers along the rail lines are especially appealing.

KEY Core area Area of influence Night reserve Day reserve

A 111 A 10 The construction of the BER airport is certainly no crown One reason for this, it found, was that whole career groups, edge of the city. For instance, the express to Schönefeld. of glory for Berlin. It was originally planned to go into oper- e.g. managers, engineers and consultants, have to fly through Between 700 and 1,000 apartments are slated to be built ation in the summer of 2012. That is now five years ago. such hubs regularly on business. »All these people like to live there around the Bayangol Park in the coming years. Or on BERLIN But still: With the launch of operations (2019 at the ear- near the airport to save on long driving times,« says bulwien- to Wildau, also Zeuthen, municipalities that are already liest), the increase in passenger numbers and more and gesa Chairperson Andreas Schulten in the study. benefiting from the growing southeast spread of Berlin and more companies putting down roots there, public percep- The municipality of Adlershof will be among those will only be affected to a limited extent by the noise emana- tions of the capital’s airport will change quickly. Current parts of Berlin benefiting from the new airport. Even ting from the new airport. A 115 forecasts call for more than 17,000 employees in the imme- without BER, 1,041 companies and scientific institutions Both towns lie along the S-Bahn line to Königs Wuster- Neukölln diate vicinity of BER alone. Then you have to add compa- with almost 17,000 employees have already settled there hausen on the Dahme Lakes. Here, Zeuthen, which is loca- nies with a great need for mobility as well as those from the through 2017. 6,700 students have also moved there. ted closer to Berlin, gains extra points mostly because of its freight but also service sectors. This will mean an enormous Because of all these scientists and students, 1,400 residen- settlement structure with green all around it. Multi-story boost for development in Berlin’s southeast, in adjacent tial units for around 2,500 people are being developed in construction will not be necessary in the future in Zeuthen municipalities and for the residential markets there. the coming years on a 14 hectare large campus directly either. The demand can be met solely by building upon The dampening effect of airplane noise will probably adjacent to the Humboldt University. Treptow-Köpenick is empty lots as well as weekender lots that free up over time. be concentrated along the main approach and take-off paths the section of Berlin with the strongest growth in apart- Wildau, on the other hand, with its population of almost

Ludwigsfelde around the neighborhood Blankenfelde-Mahlow. There, up ment numbers anyway. Building has not been restricted to 10,000, mostly has the character of a small town, but hosts County to 40,000 people will be affected by noise levels between 40 along the banks of the Spree and Dahme rivers either, not a technical college with 4,000 students around which a Dahme- Spreewald and 55 decibels. for a long time, but has also spread into the open spaces growing number of tech jobs are grouping. The municipal- B 96 A 13 beyond. ity has already tackled the building of rental apartments B 101 NEW APARTMENT SEEKERS WILL and with BAUWERT, the first large private actor has BRANDENBURG BE COMING ALONG WITH THE AIRPORT DYNAMIC DEVELOPMENT ALONG THE already entered the market. AM ROSENANGER is where S-BAHN SUBURBAN RAIL LINES a total of 14 townhouses and 171 apartments are to be Along with all this, mostly positive impulses are expected developed by 2020, a third of them for owner-occupancy. // DEVELOPMENT AXIS SOUTHEAST for residential markets in the area. Studies by bulwiengesa The same is happening in the southeast municipalities in the areas surrounding large airports in German-speak- around there, in Zeuthen, Wildau and Mittenwalde. There An overview of the area affected by the BER Airport and the noise abatement areas. ing countries, among them Frankfurt and Zurich, have are, of course, reservations about growing densities and the shown higher property values, for instance also on the noi- vicissitudes of financing social infrastructure. But more Source: Berlin-Brandenburg Area Development Company GmbH, sy east shore of Lake Zurich and in the surroundings of the and more suppliers, driven by growing demand, are hop- Airport Berlin-Brandenburg, Forschungs- und Planungsgruppe Stadt und Verkehr (Research and Planning Group City and Traffic) long disputed northwest runway at the Frankfurt Airport. ping on the train out towards the municipalities on the

34 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 35 HOUSE OR APARTMENT? INTERVIEW WHAT (SHOULD) REAL ESTATE FAMILIES DECIDE TO DO PURCHASING BY

The pros and cons are balanced FREELANCERS for many. Economic aspects often do not arise until later.

Mr. Grumm, it’s said that freelancers and self-employ- How do banks deal with this? ed people have huge hurdles to take at banks. Getting a mortgage is much more difficult for them than for OLAF GRUMM »Balance sheets are naturally somewhat civil servants or employees. Is this true? more difficult to read than salary statements. Banks were therefore a bit hesitant right up to recent times when it The pull to the suburbs can be clearly felt. Above all fami- Those who do not wish to become chauffeurs for their child- OLAF GRUMM »There are certainly situations in which the came to financing housing purchases by freelancers and lies with children are feeling the appeal of Berlin’s suburbs, ren over a number of years, and who also want to purchase a self-employed wish they were civil servants. But a real es- self-employed persons. In the meantime, however, banks, and once there they often go for single-family dwellings. property for a comparatively favorable price at a highly sta- tate purchase should not actually be one of them, simply even direct banks, are glad to serve these clients too. The Brandenburg reported for 2016 an increase in the new con- ble value, should therefore consider alternatives and take a because owning one’s own home is an adequate response to only thing clients have to do is clearly and openly divulge struction of single and double-family homes of 11.8 % to look, for instance, at spacious condominiums in one of the the challenges of saving for retirement. Those living rent- their financial situation. As financial consultants, of course, 6,124 units. And in Berlin too, single and double-family suburban centers. Primarily near such S-Bahn rail and regio- free have one less thing to worry about. And financing a we also see this as our mandate for these client groups. We homes make up a significant portion of the residential nal stations as Falkensee, Teltow or Wildau, one can reckon roof over one’s head does not have to cause headaches, at are glad to prepare the documentation so that bank employ- market. with sustainable demand and value appreciation for condo- least if income has been well documented and the truly im- ees don’t have to search around for the right figures but can The reasons for the continuing desire for one’s own miniums thanks to the favorable link to Berlin’s city center portant figures are good.« make a judgment concerning the client’s creditworthiness little home are many and myriad. There is more space, and a good offering of local services and institutions. // in as brief a time as possible.« more rooms and a garden for a comparatively favorable What does this mean for applicants? price. In addition, one’s own home stands for the memory And what does the down payment look like? of a sheltered childhood. Many new Berliners grew up in OLAF GRUMM »One needs records: Usually the profit- single-family homes and now want the same for their fami- and-loss-statement or the like for the current year and past OLAF GRUMM »It’s not an absolute must, but we advise lies, along with the lifestyle that entails. And last but not annual balance sheets along with tax statements. The past paying at least for the closing costs from your own means. least: an own home also means an extra bit of freedom. two to three years should suffice as baseline. This means If you take a little cushion on top of this, you’re fine with There is no common ownership of anything, no house rules, that basically banks do not go beyond the requirements putting 20 % down, and it will also have a positive effect on and no tenants one has to agree with or whose needs one they also set for employed applicants. The only thing is that the interest rate and amount of your monthly payments, has to take into account. the income situation for freelancers and self-employed per- by the way.« // However, emotional motives should not cloud the sons is as a rule a bit more convoluted than for employees.« view of economic and practical considerations. For instance, demographic developments in Germany are pointing to a reduction in the immigration of younger people from what was West Germany, and with it a declining interest in owning one’s own home in the suburbs. This could cause pressure on the resale value of homes. In addition, rising mobility costs mean families in suburbs usually need two cars and are on the road with them for several hours each day.

INTERVIEW WITH Olaf Grumm, Team Director for Financing at ZIEGERT

36 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 37 GUEST ARTICLE

THIS PROPERTY IS ONLY FOR YOU!

People buying apartments for more than 1 million Euros, do not want service from the rack. They expect truly extraordinary consulting.

hold back and design both the consulting and the sale in such a way that it matches the discriminating demands of its few prospective buyers in terms of timing, speed and PARENTS ARE BUYING approach. This begins with the first presentation of a new project in a special ambiance, an exclusive circle, and ends, at best, never. This is because a well-planned dinner at an FOR THEIR CHILDREN extraordinary locale creates a sense of belonging with those you would like to get to know better. By evoking the idea of a potential neighborhood, both the interest and the desire Rent is not a good start for asset formation. can develop for a new home, or at least it can create a lasting impression that can then be passed on to friends and Those who buy early, secure the eco- acquaintances. nomic opportunities of the next generation. Art Apero Event in a model apartment in Furthermore, it creates exclusivity and engagement THE VIEW on the Schöneberger Ufer through the contact between prospective buyer and offerer. Such common interests as fashion or art, the networking of a relationship that grows denser through conversation, and Building assets through real estate? Because good old go off to college, and this then represents a considerable In Berlin, around 1,000 apartments for more than 1 mill- a deeper understanding of each personality: all these form savings accounts no longer earn the interest they did, it amount of asset value. This applies primarily to older pro- ion Euros are presently on offer, about half of them listed an excellent basis for consulting work that truly earns the seems to be an appealing alternative. Especially for those perties, what is called “Altbau” in Germany, lofts and water- in the large Internet portals. However, only a few of our name personalized. // parents who want to make sure their children get the best front properties. Because anything that cannot be easily wealthier clients would type their search criteria into a economic start in life, a house purchase “ahead of the game” reproduced, awakens buyers’ desires.« menu and then click through all the results. These pro- is a sensible option. »Due to the low interest rates, an invest- Purchasing property for children should, however, spective buyers are used to being personally advised and ment in real estate today works like a savings account favor- only be done at locations with sustainable growth like Ber- courted. They have a personal buyer, at least one person- ed by the financial markets,« says Sven Henkes, Managing lin, Leipzig and Frankfurt. First of all, in localities with long- al trainer, know the best wealth management profession- Director at ZIEGERT. »Even when 100 % of the principal is term positive economic and population growth, you can als in the city and only order wine after a conversation financed, the rental income usually covers the cost of paying always count on value growth too. Secondly, parents cannot with the sommelier. For them, it is sign of esteem and the interest. Anything left over, and any possible supplemen- know where their children will someday move. This means trust when the Managing Director, for instance, takes tary payments, flow into paying off the principal and thus that the property should also be easy to rent over the long them on a quick voyage of discovery around Berlin on into asset creation.« run, and also good for resale. Then, lastly, with the growth the weekend. Getting to know the hot spots in town is at In addition, the continuous upward spiral in housing in the appeal of a locality, the probability that the son or least as essential to them as viewing properties that are CONTRIBUTED BY prices causes the value of the investment to grow over time, daughter might end up living on the property themselves, not yet – and perhaps never will be – on offer openly on Dorothea Metasch, and this often pays a great deal towards asset formation. at least for a while, will grow too. With an eye to possibly the market, and never in one of the web portals. Head of Marketing & The result is: »The earlier the purchase, the earlier the pro- saving rent in the future, the purchase of an apartment near So, whoever does not wish to exhibit an apartment in Key Account Management perty in question is already debt-free, perhaps when the kids a prestigious university might not be such a bad idea. // an inappropriate way and thus devalue it, he or she should at ZIEGERT

38 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 39 NEIGHBORHOOD PROFILES

Wilhelminian splendor, a hip quarter, or a peaceful family neighborhood: in Berlin, no neighborhood is like the other. This poly-centric city is made up of a number of different housing markets that also change quite differently one from the other. This is why it is well worth taking a look at each of them individually.

In our neighborhood profiles, you will find the most important facts and figures about each neighborhood – from the size of the condominium market to the number of construction completions to the household structure. The latest of the city’s most interesting quarters will also be presented. Our aim to give an important aid that will help you find your own best way to invest in Berlin. Continues to be the largest market for condominiums in Berlin. CHARLOTTENBURG- MARKET Prices are also rising continuously in the outskirts. WILMERSDORF

RESIDENTS VS. RESIDENCES ALTERTHE CHARM RUHM OF ZU THE NEUEM BOURGOISE GLANZ Since 2014, the population has grown by almost 10,000. MitFrom dem the Wiedererblühen upper-middle class der buildings City West in erobert the side Charlottenburg-Wilmersdorf streets around the Ku’damm seinen to the Even the new construction activity in recent years is not enough to satisfy the demand for living space. altensplendid Glanz villas und in internationalen Grunewald: In RufCharlottenburg-Wilmersdorf, zurück. Die Projekte Zoofenster everything und das is a Bikini bit more 336,249 Berlinfashionable, stehen more exemplarisch stylish and für at diese the same Entwicklung. time a bit Allerdings more conscious umfasst of dertradition Bezirk than Residents in 2016 inneben the restder ofCity Berlin’s West auchneighborhoods. weitere beliebte With itsWohnquartiere. elegant boutiques, Mittlerweile the Ku’damm steigen still die forms 130 183,897 Wohnungspreisethe heart of the area. auch Here, nördlich the wealthy der Otto-Suhr-Allee, residents from was adjacent die potentiellen communities, Flächen but also Residential units in 2016 120 visitorsim Norden to the Charlottenburgs city can stroll to für their den hearts’ Wohnungsneubau content. The attraktiv impressive macht. comeback of City West Inhas den also traditionell brought a creative beliebten scene Kiezen back in to Wilmersdorf the Boulevard. sind Just Flächen like in ebenfalls the Roaring heiß 20s, be -the 110 gehrtstages und and werdenmusic halls nicht are mehr meeting allein places von Westberlinern, for both local celebrities sondern auch and internationalzunehmend stars. von internationalen Käufern nachgefragt. A growing luxury market that is no longer limited solely to the long established prestigious 100 areas, and continued growth in demand throughout the neighborhood, means that new residential projects are showing up in places away from the better-known areas. 90 2005 2010 2016 2020 2025 2030

Indexed development of population and housing inventory; Index 2005 = 100; noch nicht angepasst Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg, Senatsverwaltung für Stadtent- wicklung und Umwelt (Berlin Senate Administration for Urban Development and Environment) Population Residential units

REINICKENDORF CONDOMINIUMS SOLD COMPLETIONS In spite of the slight fall in the number Slight increase in the number of completions in compa- of condominiums sold, it is still the rison to the previous year. Above all along the outskirts, 1 SIEMENSDAMM largest market for condominiums in there are further projects in planning. 1 MIERENDORFF-INSEL Berlin. SPANDAU Das UNESCO-Weltkulturerbe 1 Onwird the Haus former für Hausindustrial saniert. site Dasbetween wertet the das Spree Viertel River auf und MITTE and Mierendorffplatz, 1,000 2 lässt es in einem neuen Glanz erstrahlen.apartments are supposed to be built in the coming years.

CHARLOTTENBURG-WILMERSDORF 1 396 CHARLOTTENBURG-WILMERSDORF Completions 2 MIERENDORFFPLATZ 3 2 EASTERN WESTEND 3,000 2 Die im Norden Charlottenburgs 506 +16 % Thisgelegene bourgeois Insel etabliertneighborhood sich in comparison nachon the und border nach to als Charlottenburg attraktive to prior year 4 622 Wohnlagefeatures rows abseits of buildings des Trubels from 2,500

3 desthe 50sKurfürstendamms. and very good traffic 2,857 5 connections. 2016

2,527 2,527 Berlin on 4 3 SPREEBOGEN 2,000 the whole 3 SYBELSTRASSE 14 Zwischen Otto-Suhr-Allee 5 Betweenund Spree classic ist eine Charlottenburg Reihe von chic and high-rise develop- 18 Wohnungsprojekten geplant, 1,500 diements, dem its Kiez popularity ein neues has Aus- not sehendeclined verleihen a bit. werden. First sale Resale TEMPELHOF- 1,000 4 WESTFÄLISCHE STRASSE SCHÖNEBERG 4 CITY WEST — UnusedRUND UM buildings DEN ZOO along this Daslively Quartier shopping rund street um areden gradu Bahn- 9.4 500 hofally Zoobeing bekommt torn down ein to neues create Residences sold per 1,000 Gesicht.room for Zahlreiche high-quality Gewerbe- living STEGLITZ-ZEHLENDORF space. population projekte sind in der Planung (5.7 for Berlin Completed units in multi-story residential construction oder bereits fertiggestellt. 0 on the whole) (new buildings with three or more units); Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 5 WESTERN WILMERSDORF 2015 2016 5 HALENSEEAlong the border with Schmar- AREA Dergendorf, zweitkleinste the Wilmersdorf Berliner 65 KM2 Ortsteil,buildings am are westlichen a little less Ende glamo des- Number of condominiums sold without package sales; Ku'dammsrous than in gelegen, other parts bietet of the GrünflächenGreen spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS schöneneighborhood, Wohnlagen, though z. B. there rund are 81+72 (Panel of Experts for Appraisals) Berlin, Amt für 336,249 GewässerBodies of water uma lot den of greenHochmeisterplatz. spaces here. Statistik (Office for Statistics) Berlin-Brandenburg

42 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 43 Besides an uninterrupted up-trend in prices in the entire neigh- The demographic shift harbors a great potential for barrier-free borhood, it is primarily the luxury segment starting at 7,500 €/m² newly constructed condominiums. PRICES where a truly large price increase has occurred. CLIENTS

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Offerings in the segment starting at 5,000 €/m² are continuing Along with Friedrichshain-Kreuzberg, this In no other neighborhood is the portion of to grow. Searches are also gradually shifting into this segment. neighborhood posts the highest proportion households earning more than 6,000 Euros a of self-employed persons. month higher. And it is still growing. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 0 % 4 % 20 % 37 % 32 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 6+2+2+2+5+3+4+9+14+17+15+21 1,501—2,000 €/m 3 % 9 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 6.4 % 7 % 11 % Completed education University entran- High school Non-high-school 2,501—3,000 €/m2 15 % 12 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 1.7 % 3,001—3,500 €/m 14 % 11 % 60 % 24 % 16 % (42 %) (40 %) (18 %) 3,501—5,000 €/m2 32 % 34 % 5,000—5,500 € 60+24+16o 590,000 € 1.9 % > 5,000 €/m2 29 % 18 % Employment based Employed Civil service Self-employed Worker on position in career 68 % 4 % 23 % 5 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 2.1 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi 68+3+236o 4,000—4,500 € 480,000 € 4.9 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Several large projects are slated to begin, primarily along the S-Bahn-Ring. 3,600—4,000 € 425,000 € 2.6 % Residential units AGE STRUCTURE HOUSEHOLD STRUCTURE 0—24 3,200—3,600 € The demographic shift has become Just like other centrally located neighborhoods, CHARLOTTENBURG-WILMERSDORF 385,000 € 4.1 % 25—49 noticeable: the proportion of people over Charlottenburg-Wilmersdorf also has a high proportion CHARLOTTENBURG-WILMERSDORF 65 has grown significantly. of single-person households. 50—199

2,600—3,200 € from 200 2015 340,000 € 9.4 % Single-person Two-person Multiple-person households households households 2,000—2,600 € 13.8 % 27 % 280,000 € 32 % % 50 % 1,500—2,000 € 16.7 % 210,000 € 22 % 23 % 2016 23 % 19 % 2005 %

1,100—1,500 € % 15.4 % Berlin 160,000 € 15 % 15 0 % 13 % on the 27 13 % whole 59 % in 2005 27 % in 2005 14 % in 2005 13 % 2016 58 < 1,100 € 110,000 € 21 % Comparison of household size 2005/2015; 3,538 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 5,242 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 44 Condominium Report 2017 / 2018 13+13+32+23+1913+15+27+22+23 Condominium Report 2017 / 2018 45 Little dynamic on the residential market in spite of higher demand. The projects in planning along the banks of the Spree will raise the FRIEDRICHSHAIN- MARKET number of completions and sales in the coming years. KREUZBERG

RESIDENTS VS. RESIDENCES WHERE NON-CONFORMISTS LOVE TO LIVE Population growth has slowed a bit in recent years. »Kreuzberger nights last long« — every German can hum along to this popular song from the 70s. The situation on the residential market, however, remains tight due to high demand. The shotgun wedding between Kreuzberg and Friedrichshain, one from the old East, the other 281,323 from the old West, was part of the most recent neighborhood reform movement. It made clear to Residents in 2016 even the oldest Berliner that these two neighborhoods had more in common than they had differ- 130 150,177 ences. The youngest neighborhood in Berlin not only posts the largest density of clubs in the city, Residential units in 2016 120 it also scores points with international cuisine (from midnight snacks at standing cafés to discriminating 10-course menus in gourmet restaurants) and a striking cultural and creative scene. No 110 wonder, therefore, it continues to attract well-educated young professionals from all over the

world. The shortage of building sites in the densely populated neighborhood is causing prices 100 to stay on the rise. Countless construction cranes between the Spree river and the rail line in

Friedrichshain are evidence of the creation of a new part of the city. With several new residential 90 and office towers, along with an entertainment center, Berlin is getting a new skyline in this area 2005 2010 2016 2020 2025 2030

which was once the path of the Berlin Wall. Indexed development of population and housing inventory; Index 2005 = 100; Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg, Senatsverwaltung für Stadtent- wicklung und Umwelt (Berlin Senate Administration for Urban Development and Environment) Population Residential units

PANKOW 1 BÖHMISCHES QUARTIER Within walking distance of the CONDOMINIUMS SOLD COMPLETIONS Volkspark Friedrichshain, there is Only a slight increase in sales figures at The number of completions has fallen a lot due to a lack the former brewery site where present. Some projects along the Spree of potential building sites. North of the Spree river, there are a new residential area is under river will, however, bring an upswing quite a few building cranes swinging back and forth. development. 1 to the market in the foreseeable future.

2 NORTH OF THE OSTBAHNHOF Commercial use, huge prefabrica- MITTE

FRIEDRICHSHAIN-KREUZBERG ted high-rises and a few free spaces FRIEDRICHSHAIN-KREUZBERG offer room for higher densities – 795 but it has not yet developed any Completions neighborhood character yet. 3,000 –51 % 4 in comparison 2 3 EAST SIDE GALLERY to prior year Urban development is moving 2,500 3 apace. Free spaces presently in use by tourists are being built up 2016 5 with high-rise apartment towers, Berlin on a mall and entertainment center. 2,000 the whole 571 TREPTOW- 592 KÖPENICK 1,500 1,633 1,633 1,616 1,616 First sale Resale 1,000 NEUKÖLLN 4 WESTERN KÖPENICKER STRASSE 17++16 7.7 TEMPELHOF- Industrial wastelands and a 500 Residences SCHÖNEBERG distinctive club scene along the sold per 1,000 water make up the rugged charm population of this quarter. Several develop- (5.7 for Berlin Completed units in multi-story residential construction ments are in planning here over 0 on the whole) (new buildings with three or more units); the next few years. Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 2015 2016

AREA 5 GLEISDREIECK 20 KM2 Multi-use spaces and an inge- Number of condominiums sold without package sales; Green spaces nious concept blending wild Source: Gutachterausschuss für Grundstückswerte RESIDENTS 46+47 greenery with crafted free spaces (Panel of Experts for Appraisals) Berlin, Amt für 281,323 Bodies of water make this park particularly Statistik (Office for Statistics) Berlin-Brandenburg attractive. Adjacent residential projects are in high demand. 46 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 47 In both parts of the neighborhood, prices are increasing significantly. The neighborhood also continues to be especially popular among The new building projects on the banks of the Spree will noticeably in- young, creative and international newcomers. PRICES crease the number of offerings in the segment starting at 7,500 €/m². CLIENTS

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Two-thirds of the condominiums on offer cost more than 65 %: the highest proportion of college- Because of the high number of single house- 3,500 €/m²; and demand in this segment has also risen considerably, entrants of all Berliner neighborhoods. holds, the mean net household income is although it is still lagging the offerings. still below the average for Berlin as a whole. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 0 % 4 % 20 % 25 % 39 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 2+ 1,501—2,000 €/m 2 % 8 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 2 % 5 % 10 % Completed education University entran- High school Non-high-school 2 1 2,501—3,000 €/m 12 % 12 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 0.7 % 3,001—3,500 €/m 15 % 12 % 65 % 24 % 11 % (42 %) (40 %) (18 %) + 1 3,501—5,000 €/m2 48 % 35 % 5,000—5,500 € 65+24+11o 590,000 € 1.3 % > 5,000 €/m2 18 % 18 % Employment based Employed Civil service Self-employed Worker + 1 on position in career 68 % 2 % 23 % 7 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 1.4 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi + 2 68+2+23+7o 4,000—4,500 € 480,000 € 2.4 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg +

3 Large new construction projects are under development primarily in the strip where the Berlin Wall once stood along the Spree river. 3,600—4,000 € 425,000 € 3 % Residential units

+3+9+ AGE STRUCTURE HOUSEHOLD STRUCTURE 0—24 FRIEDRICHSHAIN-KREUZBERG FRIEDRICHSHAIN-KREUZBERG 3,200—3,600 € Berlin’s youngest neighborhood by far. In spite of rising popularity among families, still the 385,000 € 3.4 % 25—49 Nowhere else do so few + 65-year-olds live. highest proportion of single households in Berlin.

50—199

2,600—3,200 € from 200 8.9 % 40 % 2015 340,000 € 38 % Single-person Two-person Multiple-person

14 households households households 2,000—2,600 € 280,000 € 14.3 %

+ % 17 50 % 1,500—2,000 € 19 % 210,000 € 17.3 % 24 % 2016 +17+28 16 % 2005 13 % % 1,100—1,500 € % 17.1 % 15 % Berlin 160,000 € 0 % 15 % on the 21 16 whole 66 % in 2005 23 % in 2005 11 % in 2005 10 % 2016 63 < 1,100 € 110,000 € 28.2 % 10 % Comparison of household size 2005/2015; 3,398 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 4,453 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 48 Condominium Report 2017 / 2018 15+24+38+13+1015+19+40+16+10 Condominium Report 2017 / 2018 49 The market for condominiums is still not showing hardly any growth. Many open spaces and high demand are, however, LICHTENBERG MARKET creating the basis for positive development.

UPSWING IN THE EAST The “Weitlingkiez,” with its lovely old buildings, stands as a symbol for the development in this entire neighborhood. Even if the street south of the S-Bahn station Lichtenberg was RESIDENTS VS. RESIDENCES tainted by a dubious image a few years ago, this Wilhelmina-era quarter has now become With 2.9% in comparison to 2015, the highest population growth a refuge for Berliners both old and new who want to get away from and can well do without among all Berlin's neighborhoods. The housing inventory is also continually growing, but at a much smaller rate. all the hype surrounding the so-called hip neighborhoods, and yet still appreciate the best traffic links and a family-friendly area. Only the restaurant scene is still on hold, though 283,121 Residents in 2016 it only seems to be a matter of time until those now running nail studios and hairdressing 130 salons will get a new business idea here too. The green suburb of Karlshorst is experiencing 150,845 Residential units in 2016 similar popularity: noble villas and several new construction projects characterize the scene 120 here. There are presently plans to develop the old industrial wasteland on the Blockdamm- 110 weg into a quarter with family-friendly apartments and a good social infrastructure.

These endeavors are already paying off: In comparison to the previous year, the neighborhood 100 was able to book almost twice as many building permits. The number of completions, however, is still lagging far behind. There is still a lot of free space available for condominium 90 development. 2005 2010 2016 2020 2025 2030

Indexed development of population and housing inventory; Index 2005 = 100; Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg, Senatsverwaltung für Stadtent- wicklung und Umwelt (Berlin Senate Administration for Urban Development and Environment) Population Residential units

BRANDENBURG CONDOMINIUMS SOLD COMPLETIONS 1 FALKENBERG Third-smallest market with stagnating A small increase in new building activity. Based on the Bisons can be observed in the na- sales figures. number of completed units, still ranks fourth Berlin-wide. ture preserve Falkenberger Riesel- 1 felder. Elsewhere too, this part of LICHTENBERG PANKOW the city is characterized by peace LICHTENBERG and quiet and a lot of greenery.

2 ALT-HOHENSCHÖNHAUSEN Two lakes, a thoroughfare and 918 an extremely eclectic blend of Completions buildings, but the large-scale 2 3,000 plans for the former Sport Forum +3 % on the southern edge of the area in comparison point to changes to come. to prior year 2,500 3 FREIAPLATZ 2016 MARZAHN- Young couples and many students Berlin on HELLERSDORF feel right at home in the genuine 2,000 the whole classic old “Altbau” structures north of the Frankfurter Allee and enjoy the good links to various hip parts 1,500 3 of the city.

FRIEDRICHSHAIN- First sale Resale KREUZBERG 4 KASKELKIEZ 1,000 4 This picturesque Wilhelmina quarter lies like an island between the Ostkreuz and Nöldnerplatz, 310 3.2 500 424 offering pretty little cafés and Residences sold per 1,000 bistros. Now the last empty spaces 568 population are being filled with life. 471 Completed units in multi-story residential construction 5 (5.7 for Berlin 0 on the whole) (new buildings with three or more units); Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 5 KARLSHORST 2015 2016 Building activity is going on 9 AREA 12 everywhere you look in this area. 52 KM2 No wonder: Karlshorst is doing Number of condominiums sold without package sales; everything it can to present itself Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS as green, family-friendly and 16+13 (Panel of Experts for Appraisals) Berlin, Amt für 283,121 Bodies of water very well spruced up. Statistik (Office for Statistics) Berlin-Brandenburg

50 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 51 In spite of high demand and large amount of potential space, only Not only families feel at home in Lichtenberg. More and more PRICES a few projects are being implemented in Lichtenberg at present. CLIENTS students are also discovering the neighborhood.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Half of all searches are in the price segment starting at 3,500 €/m². The largest proportion of white-collar The average income of Lichtenbergers is The small number of offerings at the same time in this segment is employees Berlin-wide. growing more slowly than the average for pointing to a potential for new building projects. Berlin on the whole. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 6 % 4 % 19 % 33 % 19 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 1 1,501—2,000 €/m 6 % 8 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 0.7 % 10 % 11 % Completed education University entran- High school Non-high-school + 2 1 2,501—3,000 €/m 38 % 13 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 0.5 % 3,001—3,500 €/m 20 % 13 % 32 % 58 % 10 % (42 %) (40 %) (18 %) + 1 3,501—5,000 €/m2 18 % 37 % 5,000—5,500 € 32+58+10o 590,000 € 0.7 % > 5,000 €/m2 2 % 13 % Employment based Employed Civil service Self-employed Worker + 1 on position in career 71 % 5 % 9 % 15 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 1.2 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi + 3 71+5+915o 4,000—4,500 € 480,000 € 2.6 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg +

2 Only a few residential condominium projects in planning. LICHTENBERG LICHTENBERG 3,600—4,000 € Residential units 425,000 € 2.2 % 0—24

+ AGE STRUCTURE HOUSEHOLD STRUCTURE 3 25—49 3,200—3,600 € Above all the number of those below The proportion of single-person households continues to grow. 3.3 % 18 years old has been growing for years. This is due, among other things, to the migration of young people 385,000 € 50—199 from more centrally located neighborhoods. + 9 from 200

2,.600—3,200 € 2015 340,000 € 9.1 % Single-person Two-person Multiple-person + 16 households households households 2,000—2,600 € 16.5 % 280,000 € 29 % +18+19+26 30 % % 50 % 1,500—2,000 € 18.2 % 210,000 € 2016 20 % 2005 % 16 % 19 % 20 % 1,100—1,500 € 19 % 18 % % 18.9 % 16 % Berlin 160,000 € 14 0 % 13 % on the 30 whole 45 % in 2005 35 % in 2005 20 % in 2005 2016 56 < 1,100 € 110,000 € 26.1 % Comparison of household size 2005/2015; 2,393 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 3,482 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 52 Condominium Report 2017 / 2018 13+19+30+20+1816+16+29+20+19 Condominium Report 2017 / 2018 53 First new building projects for condominiums are in operation. Besides this rather restrained development, the market for MARZAHN- MARKET single-family homes is prospering. HELLERSDORF

RESIDENTS VS. RESIDENCES PRE-FAB AND MORE The population is only growing slowly here, but still much The organizers of the International Garden Exhibition are expecting more than two million visitors by more quickly than housing inventories. October at the venue between the two neighborhoods that give this area its name, a site almost ten- 262,015 times the size of Berlin’s Museum Island. In spite of this, Marzahn-Hellersdorf is primarily known for Residents in 2016 the pre-fabricated high-rises built here in the early 70ies. It all began when former East Germany laun- 130 134,887 ched a program to provide every family with an apartment. In comparison to the classic “Altbau” buil- Residential units in 2016 120 dings held in such regard today, the apartments here were modern and the layouts well-thought-out. In addition, they also offered residential amenities unknown before: elevators, central heating and hot 110 running water. Since the fall of the East and the renovation of the Altbau inventories in central locations,

Europe’s largest contiguous development of pre-fabricated high-rises has lost its significance. In the 100 90ies, living here was still stigmatized. However, due to the huge demand for living space, the empty

inventory here too has plummeted to an all-time low. There are also new condominium developments 90 going up slowly but surely around the area, the first of them already in operation. And the free-standing 2005 2010 2016 2020 2025 2030

family homes in Mahlsdorf are also still experiencing high demand thanks to their green surroundings. Indexed development of population and housing inventory; Index 2005 = 100; Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg, Senatsverwaltung für Stadtent- wicklung und Umwelt (Berlin Senate Administration for Urban Development and Environment) Population Residential units

CONDOMINIUMS SOLD COMPLETIONS The neighborhood posts the lowest num- The least amount of new building activity of all Berlin’s ber of apartment purchases per 1,000 neighborhoods. In the coming years, however, several BRANDENBURG residents; tendency slightly upward. projects are being planned by municipal residential construction companies. MARZAHN-HELLERSDORF MARZAHN-HELLERSDORF

73 1 GÄRTEN DER WELT Completions 3,000 1 The long anticipated IGA –13 % (International Garden Exhibition) in comparison has finally arrived. Whether to prior year the colorful exhibition for the 2,500 contemporary art of gardening will give a further boost to the 2016 condominium market remains Berlin on to be seen. 2,000 the whole

LICHTENBERG 2 HULTSCHINER DAMM 1,500 The gigantic area of single- family homes around the 2 connecting street with a tram First sale Resale line is clearly benefiting from 1,000 the huge recreation value of 3 the Kaulsdorfer lakes. This is a great place to peacefully enjoy 1.7 500 Residences

the sun, picnic under shady 53 236 sold per 1,000 trees or even do a little fishing: population 14 species of fish have recently (5.7 for Berlin Completed units in multi-story residential construction TREPTOW- been documented. 0 226 216 on the whole) (new buildings with three or more units); KÖPENICK Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 2015 2016 3 KAULSDORF-SOUTH AREA Idyllically green on the edge 62 KM2 of the neighborhood. Still a Number of condominiums2+ 7sold without package sales; few unoccupied lots are waiting Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS here for today’s committed 6+6 (Panel of Experts for Appraisals) Berlin, Amt für 262,015 Bodies of water homebuilder. Statistik (Office for Statistics) Berlin-Brandenburg

54 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 55 Only a little new construction of condominiums in this neighbor- Many Berlin families are making their dreams of their own PRICES hood. The prices are rising slightly, but remain at a low level. CLIENTS home in the suburbs come true here.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Three-quarters of all apartments on offer are in the A high proportion of families and The portion of higher earners is growing price segment of up to 2,500 €/m². married couples are a characteristic slowly but surely. At present, the average of this neighborhood. net household income is, however still low. Price classes Offerings Searches

Net household < 1,000 €/m2 2 % 2 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 23 % 8 % 24 % 40 % 13 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 1 1,501—2,000 €/m 30 % 15 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 1 % 19 % 14 % Completed education University entran- High school Non-high-school +1+ 2,501—3,000 €/m2 11 % 13 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 1.5 % 3,001—3,500 €/m 11 % 14 % 20 % 69 % 11 % (42 %) (40 %) (18 %)

1 3,501—5,000 €/m2 4 % 29 % 5,000—5,500 € 20+69+11o 590,000 € 1.3 % > 5,000 €/m2 0 % 7 % Employment based Employed Civil service Self-employed Worker +2+3+4+4+ on position in career 68 % 5 % 7 % 20 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 2.5 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi 68+5+720o 4,000—4,500 € 480,000 € 3.4 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Hesitant development in newly built condominiums in this neighborhood. 3,600—4,000 € 425,000 € 4.2 % Residential units

MARZAHN-HELLERSDORF AGE STRUCTURE HOUSEHOLD STRUCTURE MARZAHN-HELLERSDORF 0—24 3,200—3,600 € Especially strong in recent years is the The portion of multi-person households is also falling 385,000 € 4.1 % 25—49 growth of the +50 age group. steadily in Marzahn-Hellersdorf.

50—199 8

2,600—3,200 € from 200 2015 340,000 € 8 % Single-person Two-person Multiple-person +15+18 households households households 2,000—2,600 € 280,000 € 15.3 % 26 % 31 % 50 % 1,500—2,000 € 25 % 18.5 % % 210,000 € 21 % 2016 %

+17+ 2005 13 % 19 % % 1,100—1,500 € 17 % 19 % 13 % 17.4 % Berlin 160,000 € 16 % 0 % on the 19

23 whole 38 4340 % in 2005 36 % in 2005 24 % in 2005 2016 < 1,100 € 110,000 € 22.8 % Comparison of household size 2005/2015; 1,972 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 2,329 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 56 Condominium Report 2017 / 2018 16+19+31+21+1317+13+26+25+19 Condominium Report 2017 / 2018 57 While the development of Europacity is really taking off, the condominium market is also gradually improving in Moabit MITTE MARKET and Wedding.

BETWEEN TOP ADDRESS AND “THE HOOD” As designation for the district and the neighborhood of the same name, as well as being a synonym for the city center, the name Berlin-Mitte is as accurate as it is imprecise. RESIDENTS VS. RESIDENCES The historic city center with its countless sights and its inherent charm between the old This neighborhood continues to post strong population and the new is probably much more well-known to most tourists than it is to Berliners growth which noticeably exceeds the increase in housing inventories. themselves. Just like in other capitals, the seat of government, embassies and many company headquarters are concentrated around these central locations. Besides the established 371,407 Residents in 2016 top addresses around the Spittelmarkt, Gendarmenmarkt and Nikolaiviertel, a large 130 number of luxurious apartments in several high-rise developments are going up directly 194,023 Residential units in 2016 along the Alexanderplatz. And not just here is there a lot of building going on: With the 120 Europacity, a new urban district is being developed north of the Central Station on 110 an area measuring 40 hectares.

Besides the neighborhoods Mitte and Tiergarten, however, the former working persons’ 100 areas of Wedding and Moabit also belong to this district. Whereas Wedding with its still affordable rents appeals primarily to students from all over the world, new and hot restau- 90 rants and bars are slowly popping up in Moabit. 2005 2010 2016 2020 2025 2030

ENGLISH QUARTER REINICKENDORF 1 This quiet residential area around the 30 hectare large Schillerpark is CONDOMINIUMS SOLD COMPLETIONS gradually attracting more students In spite of slightly lower sales figures, Strong growth in new construction activity: In comparison because not only the Beuth

MITTE Mitte remains the second largest market for to last year, the number of completions has doubled. MITTE 1 University of Applied Sciences is easy to reach, the many bars and condominiums. pubs in south Wedding are too. PANKOW 2 BRUNNENVIERTEL Central, well linked and some of Berlin’s most popular neigh- 1,868 borhoods as neighbors. But the 2 Completions property market is still developing 3,000 rather sluggishly in one of the +110 % socially weakest parts of Berlin. in comparison 3 to prior year 2,500 3 WESTERN MOABIT Industry, a lot of room for cre- 2016 ativity and the first fashionable Berlin on restaurants and bars make this 2,000 the whole 1,240 area around the Beusselstraße 1,554 a location with potential. 4 CHARLOTTENBURG- 1,500 WILMERSDORF 1,706 1,706 4 BRANDENBURGER TOR 1,700 Characterized by high-priced First sale Resale 5 re-partitioning projects near 1,000 the Brandenburg Gate, now the 44 35 contentious line of shops directly adjacent to the Holocaust 7.9 FRIEDRICHSHAIN- 500 Memorial is also giving way to Residences KREUZBERG sold per 1,000 TEMPELHOF- a residential project. SCHÖNEBERG population (5.7 for Berlin Completed units in multi-story residential construction 0 on the whole) (new buildings with three or more units); 5 STALLSCHREIBERSTRASSE Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Some wickedly expensive new 2015 2016 buildings have wedged themsel- AREA ves between buildings from the 39 KM2 70ies and some less-than-success- Number of condominiums sold without package sales; ful post-reunification architecture. Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS A large project will now complete 49+49 (Panel of Experts for Appraisals) Berlin, Amt für 371,407 Bodies of water the neighborhood. Statistik (Office for Statistics) Berlin-Brandenburg

58 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 59 In 2016, the highest prices Berlin-wide were obtained in the International immigrants and multi-locals prefer Mitte as their section of Mitte. But the other parts of this area also posted place of residence. Accordingly, there is a preponderance of single PRICES steady price increases. CLIENTS households.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Highest prices for condominiums on offer, more than Almost every second resident here has an 2 Clear increase in medium and upper income 2/3 of all offerings lie above 3,500 €/m . international background. groups. The average income remains, however, below the level for Berlin on the whole. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 1 % 4 % 21 % 30 % 46 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 2+ 1,501—2,000 €/m 4 % 8 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 2.2 % 5 % 10 % Completed education University entran- High school Non-high-school 2 1 2,501—3,000 €/m 10 % 12 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 1 % 3,001—3,500 €/m 9 % 11 % 53 % 25 % 22 % (42 %) (40 %) (18 %) + 1+ 3,501—5,000 €/m2 33 % 34 % 5,000—5,500 € 53+25+22o 590,000 € 1.3 % > 5,000 €/m2 38 % 20 % Employment based Employed Civil service Self-employed Worker 1 on position in career 68 % 3 % 16 % 13 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 1.6 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi +2+2 68+3+1712o 4,000—4,500 € 2. % NEW CONDOMINIUM PROJECTS

MITTE 480,000 € MITTE Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Primarily in Mitte there was a lot of new construction in planning due to the high demand. This also includes the Europacity north of 3,600—4,000 € the Central Station. 425,000 € 2.2 %

+ AGE STRUCTURE HOUSEHOLD STRUCTURE 4 Residential units Significant growth in the group of 18 to 29 Because of the many commuter households, among other things, 3,200—3,600 € 0—24 385,000 € 3.9 % year-olds that can be explained by the strong Mitte (together with Pankow) posts the second highest proportion 25—49 influx of new people into the area. of single-person households. + 9

50—199 2,600—3,200 € 2015 340,000 € 8.9 % from 200 Single-person Two-person Multiple-person + 13 33 % households households households 2,000—2,600 € 35 % 280,000 € 13.1 %

+18+16+ % 50 % 1,500—2,000 € 210,000 € 18.5 % 22 % 2016 19 % 2005 % % 1,100—1,500 € 17 % 16 % 15 % Berlin 160,000 € 16 % 0 % 16 % 13 % on the 22 18

29 whole 14 % 58 % in 2005 25 % in 2005 17 % in 2005 2016 60 < 1,100 € 110,000 € 29.2 % Comparison of household size 2005/2015; 3,769 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 5,447 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 60 Condominium Report 2017 / 2018 16+19+35+16+1415+22+33+17+13 Condominium Report 2017 / 2018 61 High demand faces off against low completion numbers. Due to the small number of available building sites, there are hardly NEUKÖLLN MARKET any new building projects inside the S-Bahn-Ring at all.

ONCE THERE WERE MORE CORNER PUBS Berlin’s multi-cultural neighborhood remains in the headlines, whether it is because of cultural events such as the annual spectacle “48h Neukölln,” where countless artists play in RESIDENTS VS. RESIDENCES the small galleries and the public spaces around Neukölln for a weekend, or because of the At the moment, the population figures are stagnating Weserstraße which has also continued to secure its reputation as an international party mile. because of the small amount of living space on offer. All around it are gathered homey cafés, owner-run shops and original but improvised parks and squares. Not only are the delicacies on offer often quite exotic, English and Spanish have 327,522 Residents in 2016 also established themselves as quasi-official languages. All locations within the S-Bahn-Ring 130 are presently experiencing unbridled demand. Free building lots, however, are a true rarity 162,842 Residential units in 2016 in this densely build neighborhood. So it is that new building projects are now going up even 120 along heavily trafficked thoroughfares, and by the same token, further potentials for further 110 densification are being looked into.

Something is also going on south of the S-Bahn-Ring in Britz: Mostly north of the Wederstraße, 100 where the urban building style with four to five floor construction in closed checkerboard- edged blocks dominates, more and more buildings are currently being renovated. Further 90 south, this structure gradually breaks up and the neighborhood takes on a village character. 2005 2010 2016 2020 2025 2030

FRIEDRICHSHAIN-KREUZBERG 1 MAYBACHUFER An “in” neighborhood, but a CONDOMINIUMS SOLD COMPLETIONS 1 touch different: On the one hand, ducks paddle along the The number of apartments sold is The number of construction completions remains low Landwehrkanal, on the other, steadily rising, but more slowly than due to the small amount of new building activity. There are, there is haggling about the price the high demand would warrant. however, several projects currently in planning. NEUKÖLLN of olives at the biweekly Turkish NEUKÖLLN Bazaar along streets flanked by 2 cute and classic “Altbau” houses. 3

2 SCHILLERKIEZ 4 TEMPELHOF- Directly along the Tempelhofer 196 SCHÖNEBERG Feld, not only is a new restau- Completions rant scene coming along quite 3,000 nicely, the prices for living space +476 % TREPTOW-KÖPENICK in charming Wilhelmina-era buil- in comparison dings are also continuing to rise. to prior year 2,500

3 RICHARDKIEZ 2016 A village in the middle of Neu- Berlin on kölln? Around the Richardplatz, 2,000 the whole there are old stalls, a village church, cobblestones and even a 5 smithy. In addition, once a year 1,500 the “Rixdorfer Strohballenrollen” (hay-bale roll) is carried out. 103

105 First sale Resale 1,000 4 GRENZALLEE

Refreshingly uncouth, that is 1,108 1,072 1,072 how this area around the U-Bahn 3.7 500 station presents itself. This is Residences sold per 1,000 BRANDENBURG where Neukölln is still original. population 3 Completed units in multi-story residential construction 3 (5.7 for Berlin 0 on the whole) (new buildings with three or more units); 5 AROUND BRITZER GARDENS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Free-standing single-family 2015 2016 homes and several projects in AREA planning can be seen around the 45 KM2 Britzer Gardens that host not Number of condominiums sold without package sales; only ornately designed flower Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS beds but also the largest sundial 31+32 (Panel of Experts for Appraisals) Berlin, Amt für 327,522 Bodies of water in Europe. Statistik (Office for Statistics) Berlin-Brandenburg

62 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 63 Because of scarcity and high demand, prices have soared, A colorful blend of young creative people, long-time residents PRICES particularly north of the S-Bahn-Ring. CLIENTS and Berliner families results in a broad-based market.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME High demand for apartments starting at 3,500 €/m² implies a huge A high proportion of persons with an Lowest average income in Berlin. The number potential for new construction projects. immigrant background and many families of higher earners has, however, been growing make this a lively neighborhood. for a few years. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 6 % 5 % 26 % 33 % 44 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 1 1,501—2,000 €/m 11 % 10 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 1.4 % 16 % 11 % Completed education University entran- High school Non-high-school + 2 1 2,501—3,000 €/m 23 % 13 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 0.4 % 3,001—3,500 €/m 16 % 11 % 43 % 28 % 29 % (42 %) (40 %) (18 %) + 1 3,501—5,000 €/m2 24 % 33 % 5,000—5,500 € 43+28+29o 590,000 € 0.9 % > 5,000 €/m2 4 % 16 % Employment based Employed Civil service Self-employed Worker + 1 on position in career 70 % 3 % 16 % 11 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 1.2 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi + 2 70+3+1611o 4,000—4,500 € 480,000 € 2.3 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg + NEUKÖLLN NEUKÖLLN

3 Due to the lack of building sites, there are only a few projects in planning in the northern parts of the neighborhood. 3,600—4,000 € 425,000 € 2.6 % Residential units

+4+8+13+ AGE STRUCTURE HOUSEHOLD STRUCTURE 0—24 3,200—3,600 € Every third person in Neukölln is under 30. Disproportionately high percentage of multi-person 385,000 € 2.5 % 25—49 households in comparison to Berlin on the whole.

50—199

2,600—3,200 € from 200 2015 340,000 € 8.3 % Single-person Two-person Multiple-person households households households 2,000—2,600 € 280,000 € 13.5 % 31 % 31 % 20 % 50 % 1,500—2,000 € 19.5 % 210,000 € 2016

+ 2005

21 18 % 18 % % % 20 % 1,100—1,500 € 16 % 17 % 16 % 20.6 % Berlin 160,000 € 17 % 16 % 0 % on the 25 22 +27 whole 51 % in 2005 27 % in 2005 22 % in 2005 2016 53 < 1,100 € 110,000 € 26.8 % Comparison of household size 2005/2015; 2,613 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 3,526 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 64 Condominium Report 2017 / 2018 17+16+31+20+1616+17+31+18+18 Condominium Report 2017 / 2018 65 The third largest market for condominiums in Berlin is growing due to the mutually reinforcing trends of busy new construction activity PANKOW MARKET and strong population growth.

YOUNG FAMILY SEARCHING FOR APARTMENT After their merger in 2001, the old neighborhoods of Prenzlauer Berg and Weißensee would have gladly given their names to the newly formed district. However, the name of the little RESIDENTS VS. RESIDENCES village on the Panke river, which snakes through the entire district as a little stream – some- Not only the population figures are growing rapidly, housing inven- times above ground, sometimes below – poses the smallest common denominator for these tories are also rising due to a lot of new construction activity. two very different neighborhoods. From the periphery into the city center, one can find village structures in Blankenfelde, deeply rooted single-family housing developments and 397,406 Residents in 2016 extensive small allotment colonies in Französisch Buchholz as well as completely renovated 130 Wilhelmina houses in Prenzlauer Berg. The southernmost part of this neighborhood remains 214,136 Residential units in 2016 the epitome of the contemporary Bohemian, even though a lot of Federal civil servants 120 live here too. Young, well-heeled academicians are putting down roots in the “affluent hip“ 110 neighborhood, and double-names with an aura of the aristocratic ring across playgrounds. Weißensee offers a good infrastructure and proximity to several idyllic lakes. Several projects 100 are presently under construction here. According to forecasts, Pankow will post 12 % population growth by 2030, the strongest 90 of all Berlin’s neighborhoods. High demand and greater construction activity right out to the 2005 2010 2016 2020 2025 2030 edge of the city are mutually interdependent factors in this development. Indexed development of population and housing inventory; Index 2005 = 100; Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg, Senatsverwaltung für Stadtent- wicklung und Umwelt (Berlin Senate Administration for Urban Development and Environment) Population Residential units

1 FRANZÖSISCH BUCHHOLZ Single-family developments that have grown up over decades BRANDENBURG characterize broad parts of this CONDOMINIUMS SOLD COMPLETIONS part of the city. In the north, Every eighth apartment sold was sold There is still a lot of potential space for building the buildings thin out and it gets in Pankow. This further cements its apartments. The number of completions has fallen ever more rural. PANKOW position as the third largest market for slightly but still remains at a high level. PANKOW condominiums in Berlin. 2 HISTORIC ROSENTHAL More and more people are learn- 1 ing to appreciate the garden city character and a cozy flair that the historic structures along 1,162 the village green exude. Some Completions single-family projects are already 3,000 in the pipeline. REINICKENDORF –16 % in comparison to prior year 2 3 WILHELMSRUH 2,500

3 This villa suburb with good 560 traffic links would benefit -sig 2016 529 nificantly from the announced Berlin on closure of Tegel Airport. 2,000 the whole 2,264 2,114 2,114 LICHTENBERG 4 BORNHOLMER STRASSE 1,500 The last spaces in this neigh- 16 4 borhood, the alternative to the “real” Prenzlauer Berg are +15 First sale Resale presently being built up. The 1,000 5 excellent traffic links and the central location are working to- MITTE gether to significantly increase 6.7 500 demand. Residences sold per 1,000 population Completed units in multi-story residential construction 5 KOMPONISTENVIERTEL (5.7 for Berlin 0 on the whole) (new buildings with three or more units); Once industrial noise could be Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg heard here. Today, this neighbor- 2015 2016 hood of composers is a green AREA and peaceful residential area 103 KM2 with a number of buildings from Number of condominiums sold without package sales; the Wilhelmina era alongside Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS organic supermarkets and family- 65+60 (Panel of Experts for Appraisals) Berlin, Amt für 397,406 Bodies of water friendly cafés. Statistik (Office for Statistics) Berlin-Brandenburg

66 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 67 Prenzlauer Berg has still not been reached in terms of price, Pankow’s north counts among the most popular residential even if the adjacent neighborhoods to the north are clearly areas for Berlin families, whereas in Prenzlauer Berg it is primarily PRICES catching up. CLIENTS international clients who are on the lookout for living space.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Relatively balanced market. Most offerings and searches The proportion of self-employed persons is 2 One in ten households in Pankow earns move at a price level starting at 3,500 €/m . significantly higher that the average for Berlin more than 4,500 € net each month. And the on the whole. average income also finds itself at a high level anyway. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 0 % 3 % 21 % 28 % 16 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 3+ 1,501—2,000 €/m 2 % 8 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 3.3 % 5 % 10 % Completed education University entran- High school Non-high-school 2 1 2,501—3,000 €/m 13 % 12 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 1 % 3,001—3,500 €/m 34 % 12 % 48 % 43 % 9 % (42 %) (40 %) (18 %) +2+3+ 3,501—5,000 €/m2 36 % 35 % 5,000—5,500 € 48+43+9o 590,000 € 2.1 % > 5,000 €/m2 10 % 19 % Employment based Employed Civil service Self-employed Worker on position in career 66 % 3 % 20 % 11 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 2.6 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi 3+3 66+4+2010+o 4,000—4,500 € 480,000 € 3.4 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg PANKOW Investors are increasingly shifting their sights northward due PANKOW to the lack of potential building sights in central locations. 3,600—4,000 € 425,000 € 3.1 % Residential units

+4+ AGE STRUCTURE HOUSEHOLD STRUCTURE 0—24 3,200—3,600 € Due to the influx of families, the portion The number two-person households has significantly declined. 385,000 € 4.2 % 25—49 of those under 18 years of age is growing After Friedrichshain-Kreuzberg, this neighborhood now has the fastest. highest proportion of single households. 50—199 11

2,600—3,200 € from 200 11.2 % 2015 340,000 € 36 % Single-person Two-person Multiple-person + 38 % 15 households households households 2,000—2,600 € 280,000 € 15.4 % + 18 % 50 % 1,500—2,000 € 18 % 210,000 € 2016

+ 2005

16 18 % 14 % % 15 % 1,100—1,500 € 17 % 19 % % 16.1 % 15 % Berlin 160,000 € 14 % 0 % 15 % on the 25 15 +

20 whole 58 % in 2005 28 % in 2005 14 % in 2005 2016 60 < 1,100 € 110,000 € 19.6 % Comparison of household size 2005/2015; 3,144 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 4,172 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 68 Condominium Report 2017 / 2018 14+19+38+15+1517+14+36+18+15 Condominium Report 2017 / 2018 69 Little dynamic on the market for condominiums: This will not REINICKENDORF MARKET change until the Tegel Airport closes.

GREAT POTENTIAL AWAY FROM THE APPROACH PATH From picturesque villas to modern developments, Reinickendorf exhibits many different forms of living. Condominiums are going up mostly around the Tegeler Lake, Berlin newcomers RESIDENTS VS. RESIDENCES value the variety here amidst water, forest and urban life, and also extol the good traffic The population grew last year much faster than connection via the close feeder ramp to the city ring. The northern parts of the neighborhood – the housing inventories. Heiligensee, Hermsdorf, Lübars and Frohnau – on the other hand, are characterized by spacious single-family homes and offer a particularly large amount of green space. Above all 261,919 Residents in 2016 the garden city of Frohnau conceived around the S-Bahn station enjoys enormous popularity. 130 Slightly curving boulevards and impressive art nouveau villas complete the picture. Those 130,540 Residential units in 2016 who can afford to own their own home here are also willing to take into account traveling 120 into the city that is often both long and fraught with traffic jams. 110 In spite of the good prerequisites, the market for condominiums in this neighborhood is rather sluggish. Still, the number of completions in multi-story condominium construction 100 nearly doubled last year, though that figure is still rather low. When the Tegel Airport closes, Reinickendorf can reckon with a rally in both development and prices. Whether, and 90 if so when this will come about, is still anyone’s guess. 2005 2010 2016 2020 2025 2030

1 CITÉ FOCH Formerly the largest development by the French Army in CONDOMINIUMS SOLD COMPLETIONS BRANDENBURG Berlin, this area is finally being After all, 4 % of all apartments sold in The number of completions almost tripled in completely renovated after years of neglect. Almost 1,000 2016 were sold in Reinickendorf. comparison to last year. residential units are slated to be And that, however, is with hardly any constructed here by the end of new construction at all. REINICKENDORF the decade. REINICKENDORF

2 ALT-TEGEL The busy heart of Tegel makes up the only completely estab- 386 Completions lished market for condominiums 3,000 in the neighborhood. In recent +176 % 1 years, a number of quite high- in comparison priced projects have been com- to prior year PANKOW pleted here, primarily directly 2,500 along the water. 2016 2 3 Berlin on 3 BORSIGWALDE 2,000 the whole Constructed as a settlement for the workers at the Borsigwerke at the beginning of the 20th 1,500 4 century, today you can still find here around the Conradstraße, the Räuschstraße and the First sale Resale Schubartstraße an almost con- 1,000 18

sistent grouping of facades with 55 SPANDAU MITTE two-to-three-story residential 3.4 buildings in a blend of Gothic 863

500 793 and Baroque styles. Residences CHARLOTTENBURG- sold per 1,000 WILMERSDORF population Completed units in multi-story residential construction 4 WEISSE STADT (5.7 for Berlin 0 on the whole) (new buildings with three or more units); +1 Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Since 2008, the “Weiße Stadt” 2 (White City) along the Aroser 2015 2016 Allee has been a UNESCO AREA Heritage Site. The development, 89 KM2 built from 1929 to 1931 in the sty- Number of condominiums sold without package sales; le named New Objectivity with Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS slightly curved shapes, is once 23+25 (Panel of Experts for Appraisals) Berlin, Amt für 261,919 Bodies of water again enjoying lively demand. Statistik (Office for Statistics) Berlin-Brandenburg

70 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 71 Due to little new construction activity, prices in Above all families value this green, peaceful neighborhood. The Reinickendorf continue to be moderate. growing number of older people points, in addition, to a growing PRICES CLIENTS potential for barrier-free apartments.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Three times as many searches as offerings in the price The highest proportion of married people Disproportionately high percentage of segment starting at 3,000 €/m². Reinickendorf seems ready by comparison throughout Berlin. households with higher incomes. for new construction in the medium price segment.

Price classes Offerings Searches

Net household < 1,000 €/m2 1 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 6 % 7 % 24 % 42 % 27 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 4 1,501—2,000 €/m 25 % 13 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 3.6 % 31 % 14 % Completed education University entran- High school Non-high-school + 2 1 2,501—3,000 €/m 22 % 14 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 1 % 3,001—3,500 €/m 8 % 13 % 32 % 35 % 33 % (42 %) (40 %) (18 %) + 2 3,501—5,000 €/m2 6 % 28 % 5,000—5,500 € 32+35+33o 590,000 € 1.5 % > 5,000 €/m2 1 % 10 % Employment based Employed Civil service Self-employed Worker +2+ on position in career 62 % 8 % 14 % 16 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 1.8 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi 4 62+8+1317o 4,000—4,500 € 480,000 € 3.7 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg +

4 Hardly any new construction projects in planning. Many locations will not come into the focus of investors until the Tegel Airport closes. REINICKENDORF 3,600—4,000 € REINICKENDORF 425,000 € 3.9 % Residential units

+ AGE STRUCTURE HOUSEHOLD STRUCTURE 5 0—24 3,200—3,600 € The group of over 65 year-olds is After Marzahn-Hellersdorf, the neighborhood with the 385,000 € 4.7 % 25—49 growing the fastest. lowest proportion of single-person households, trending slightly higher. +10+ 50—199

2,600—3,200 € from 200 2015 340,000 € 9.9 % Single-person Two-person Multiple-person

17 households households households 2,000—2,600 € 16.7 % 280,000 € 24 %

+17+17+19 28 % 50 %

1,500—2,000 € 24 % % 210,000 € 17.2 % 21 % 21 % 2016 % 22 % 2005 % 1,100—1,500 € 17 % 17.4 % Berlin 160,000 € 17 % 14 % 0 % on the 19 12 % whole 34 4744 % in 2005 35 % in 2005 21 % in 2005 2016 < 1,100 € 110,000 € 18.6 % Comparison of household size 2005/2015; 1,973 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 3,456 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 72 Condominium Report 2017 / 2018 17+12+28+22+2117+14+24+21+24 Condominium Report 2017 / 2018 73 Significant population growth and gradually rising completion numbers are indicating an upward trend on SPANDAU MARKET Spandau’s residential property market.

AN INTERESTING WORLD ALL ON ITS OWN When residents of this western Berlin neighborhood talk about just “popping into the city,” they do not usually mean Berlin's Friedrichstraße but their own “city,” Spandau's Old Town. RESIDENTS VS. RESIDENCES For one thing, Spandauers like to insist upon living autonomously, i.e. apart from the rest The third highest population growth with stagnating of Berlin. For another, the modern shopping center at the train station together with the housing inventories. adjoining middle-class shopping street offers quite a wide range of goods. So who even needs Berlin? Around the Old Town, newly constructed developments from the 60ies and 70ies 239,942 Residents in 2016 group themselves along the many streets there, making it clear that Spandau is still one of 130 the most important industrial centers in the capital. Just like throughout the region, however, 118,602 Residential units in 2016 the need for industrial space has continuously declined here too. Currently there are plans 120 at a number of sites to rededicate what was formerly commercially used spaces and building 110 complexes into living space. Several thousand apartments are scheduled to be built here in the coming years. 100 Last year, the population here grew for the first time over-proportionally strongly in comparison to Berlin on the whole. All signs are therefore pointing to change. Primarily along the 90 Havel, a bit of an upswing is coming into the residential market. 2005 2010 2016 2020 2025 2030

1 AN DER MASELAKEBUCHT Directly adjacent to the Maselake- CONDOMINIUMS SOLD COMPLETIONS bucht and the recently redesigned Till now a small market for condominiums Low, but strongly growing construction completion figures. REINICKENDORF path along the shore, several hun- that is gaining in dynamic through some This trend will continue in the coming years due to several dred apartments are supposed to SPANDAU be built on the site of the Carossa large-scale construction plans. planned developments slated to come on line. SPANDAU Quarter in the coming years. 1 2 HASELHORST Next to the Spandau Citadel – one 2 3 of the best preserved fortresses 95 from the high renaissance in Completions Europe – this neighborhood offers 3,000 a pretty waterfront and still a lot of +1,088 % room for development on industrial in comparison brownfields. to prior year 2,500 (8 completions) 4 3 SIEMENSSTADT 2016 The creation of tiny apartments for Berlin on BRANDENBURG low-wage earning Siemens workers 2,000 the whole and the trial of row-house development as a new urban planning CHARLOTTENBURG- concept was the focus in 1931 when 1,500 WILMERSDORF the Siemensstadt was built here.

First sale 33 Resale 4 WILHELMSTADT 1,000

Simplistic “Altbau” structures 122 5 characterize the north, single-family homes and several villas the 1,063 4.0

500 830 Residences STEGLITZ-ZEHLENDORF area south of the Heerstraße. One sold per 1,000 can still make out a few muskrats population directly along the waterfront. Completed units in multi-story residential construction 1 (5.7 for Berlin 0 on the whole) (new buildings with three or more units); 3 Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 5 KLADOW 2015 2016 Embedded in a beautiful riverside AREA and lake landscape, Kladow lies, 92 KM2 somewhat isolated, along the Number of condominiums sold without package sales; southern edge of Berlin. The Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS idyllic setting can only be reached 30+23 (Panel of Experts for Appraisals) Berlin, Amt für 239,942 Bodies of water through detours or by ferry. Statistik (Office for Statistics) Berlin-Brandenburg

74 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 75 The low level of prices to date will increase noticeably because Berlin’s middle class feels right at home here. PRICES of the new construction projects presently in planning. CLIENTS

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Three-quarters of the apartments on offer cost around Due to large-scale industrial sites, Spandau The medium net household income has barely 2,500 €/m², i.e. in a lower price segment. posts the highest proportion of blue-collar increased over the past five years and still lies workers, although that percentage is shrinking. below the average for Berlin on the whole. Price classes Offerings Searches

Net household < 1,000 €/m2 3 % 2 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 24 % 9 % 21 % 38 % 29 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 1 1,501—2,000 €/m 27 % 14 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 0.9 % 20 % 13 % Completed education University entran- High school Non-high-school +1+ 2,501—3,000 €/m2 10 % 13 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 0.3 % 3,001—3,500 €/m 8 % 13 % 23 % 42 % 35 % (42 %) (40 %) (18 %)

1 3,501—5,000 €/m2 6 % 26 % 5,000—5,500 € 23+42+35o 590,000 € 1.3 % > 5,000 €/m2 2 % 10 % Employment based Employed Civil service Self-employed Worker + 2 on position in career 62 % 5 % 11 % 22 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 1.6 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi + 2 62+5+1122o 4,000—4,500 € 480,000 € 2 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg SPANDAU SPANDAU +

2 There is a whole series of new projects in planning, particularly for the Wasserstadt (waterfront city) Spandau. 3,600—4,000 € 425,000 € 2 % Residential units

+4+9+16+19+20+24 AGE STRUCTURE HOUSEHOLD STRUCTURE 0—24 3,200—3,600 € Both the group of over 65 year-olds and the Second strongest increase in the number of 385,000 € 4 % 25—49 group of under 30 year-olds have increased. single-person households in all Berlin.

50—199

2,600—3,200 € from 200 2015 340,000 € 8.5 % Single-person Two-person Multiple-person households households households 2,000—2,600 € 16.1 % 280,000 € 25 % 29 % % 50 % 1,500—2,000 € 210,000 € 19.5 % 21 % 22 % 2016 % 22 % 20 % 2005 1,100—1,500 € 17 % % 19.7 % Berlin 160,000 € 16 % 15 % 16 0 % on the 13 % 30 whole 47 % in 2005 35 % in 2005 18 % in 2005 2016 54 < 1,100 € 110,000 € 24.1 % Comparison of household size 2005/2015; 1,935 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 3,615 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 76 Condominium Report 2017 / 2018 16+13+29+22+2017+15+25+21+22 Condominium Report 2017 / 2018 77 For years now Steglitz-Zehlendorf has registered a stable STEGLITZ- MARKET market for condominiums. ZEHLENDORF

RESIDENTS VS. RESIDENCES A NEIGHBORHOOD FOR LASTING VALUES In a comparison with Berlin as a whole, population Not only most Berliners connect Steglitz-Zehlendorf with what is probably the most well-known of growth is rather restrained. According to forecasts, this will not change either. Berlin’s lakes. As early as 1930, the largest public open air swimming pool opened at Wannsee, one that is 304,086 overrun by thousands of swimmers when temperatures turn summery. And also the Small Wannsee, Residents in 2016 the Havel, the Schlachten and Nikolas lakes, but also the Krumme Lanke are all waterways that 130 156,696 have put their imprint on this neighborhood. Whoever can afford it, built his villa directly along the Residential units in 2016 120 water way back in the Kaiser’s days. But not only direct waterfront is popular, almost all the streets in this neighborhood count among the good and therefore also among the most in-demand locations, 110 according to Berlin’s Rent Index. This means that property in this neighborhood is not only particularly

stable in value, it also goes for ever higher prices. This applies to single-family homes as much as it 100 does to condominiums. The level of rents is also unusually high for a location at the edge of the city. In

Lichterfelde-West, spacious condominiums have already been in development for years now in a 90 number of building phases. Further large-scale building plans are, however, not scheduled at the 2005 2010 2016 2020 2025 2030

moment, in spite of the great demand. Indexed development of population and housing inventory; Index 2005 = 100; Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg, Senatsverwaltung für Stadtent- wicklung und Umwelt (Berlin Senate Administration for Urban Development and Environment) Population Residential units

1 SCHLOSSSTRASSE The conversion of the Steglitzer CONDOMINIUMS SOLD COMPLETIONS Kreisel into condominiums directly Almost 90% of the sales in this The number of construction completions has more adjacent to Berlin’s second most im- neighborhood in 2016 were resales. than doubled in comparison to the previous year. CHARLOTTENBURG- portant shopping street was recently WILMERSDORF confirmed.

TEMPELHOF- 2 SCHLACHTENSEE

STEGLITZ-ZEHLENDORF SPANDAU STEGLITZ-ZEHLENDORF SCHÖNEBERG The center between the former country home colony of Schlachtensee and Krumme Lanke has developed 801 1 beautifully: Around the small square Completions adjoining the S-Bahn station people 3,000 2 can meet up at cafés and restaurants +114 % 3 to while away an hour or two. in comparison 4 to prior year 2,500 3 ZENTRUM ZEHLENDORF Green, cozy and a little staid, this is 2016 how the residential area around the Berlin on middle-class shopping center Zehlen- 2,000 the whole 5 dorf presents itself. Good traffic links 282

and the mostly attractive building 200 structure result in consistently high 1,500

demand. 1,827

BRANDENBURG 1,585 First sale Resale 4 NIKOLASSEE 1,000 A peaceful residential area with 8 a small center around the S-Bahn +6 5.9 station. Many charming old “Altbau” 500 buildings and unpretentious sing- Residences sold per 1,000 le-family homes of newer constructi- population on make up the general picture. (5.7 for Berlin Completed units in multi-story residential construction 0 on the whole) (new buildings with three or more units); Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 5 REITERPFUHL 2015 2016 After several plans have already been AREA drawn up for the brownfield on the 103 KM2 Osdorfer Straße, a new part of the Number of condominiums sold without package sales; city is now supposed to be built with Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS around 2,500 apartments, kindergar- 52+45 (Panel of Experts for Appraisals) Berlin, Amt für 304,086 Bodies of water tens, schools and playing fields. Statistik (Office for Statistics) Berlin-Brandenburg

78 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 79 The neighborhood stands for value preservation. The stable Particularly the older, well-established and well-educated middle growth in prices will continue. class is looking for apartments here. No wonder then that the avera- PRICES CLIENTS ge age continues to rise steadily.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Offerings and searches are being concentrated more and A high proportion of civil servants and many 2 The neighborhood with Berlin's wealthiest more on the price segment starting at 3,500 €/m . married couples speak to the more traditional population. The proportion of higher earners character of this neighborhood. will continue to grow. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 2 % 5 % 23 % 41 % 19 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 6 1,501—2,000 €/m 9 % 10 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 6.1 % 23 % 11 % Completed education University entran- High school Non-high-school + 2 2 2,501—3,000 €/m 15 % 13 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 2 % 3,001—3,500 €/m 15 % 11 % 53 % 27 % 20 % (42 %) (40 %) (18 %) +2+ 3,501—5,000 €/m2 24 % 33 % 5,000—5,500 € 53+27+20o 590,000 € 2.1 % > 5,000 €/m2 12 % 16 % Employment based Employed Civil service Self-employed Worker 3 on position in career 66 % 8 % 20 % 6 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 2.8 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi + 4 66+8+206+o 4,000—4,500 € 480,000 € 3.5 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg

+4+ Slight increase in new construction activity: Above all in Lichterfelde, several rental and condominium projects are being developed. 3,600—4,000 € 425,000 € 4.3 % Residential units STEGLITZ-ZEHLENDORF AGE STRUCTURE HOUSEHOLD STRUCTURE STEGLITZ-ZEHLENDORF 6 0—24 3,200—3,600 € Berlin’s oldest neighborhood: almost every Slight reduction in the number of multi-family 385,000 € 5.7 % 25—49 second person is older than 50. households in favor of single-person households.

+ 50—199 11

2,600—3,200 € from 200 2015 340,000 € 10.7 % Single-person Two-person Multiple-person +14+ households households households 2,000—2,600 € 14 % 280,000 € 24 %

17 29 % 50 % 26 % % 1,500—2,000 € 21 % 210,000 € 16.7 % 22 % 2016

+ 2005 15 22 % % % 1,100—1,500 € 14.4 % 15 % Berlin 160,000 € 13 % 0 % 15 % on the 19

+ 29 13 %

18 whole 47 % in 2005 35 % in 2005 18 % in 2005 2016 52 < 1,100 € 110,000 € 17.7 % Comparison of household size 2005/2015; 2,788 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 4,809 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 80 Condominium Report 2017 / 2018 15+12+29+22+2115+12+24+22+26 Condominium Report 2017 / 2018 81 Schöneberg is continuing to enjoy high demand. Tempelhofs residential property market, on the other hand, is only putting in TEMPELHOF- MARKET a rather weak showing, and this in spite of good potential. SCHÖNEBERG

RESIDENTS VS. RESIDENCES ALL BERLIN’S DIVERSITY Particularly in central locations there is not enough The days when David Bowie and Iggy Pop took in the morbid charm of West Berlin every night are available space to satisfy the high demand. long past. But the aura of constant change remains. Besides the residential locations around the 346,108 Winterfeldtplatz that have been in demand practically forever, the Potsdamer Straße is once again Residents in 2016 developing into the place to be. Last year, a number of flagship stores for international brands opened 130 181,149 all at once, also a diverse number of galleries and a handful of trendy restaurants between all the Residential units in 2016 120 cheap fast-food joints and shabby 70ies buildings. It’s thus little wonder that the residential market is also following suit and the last commercial spaces in the area are being checked for residential use. 110 And then there would be Tempelhof: The mostly peaceful residential areas in Alt-Tempelhof are characterized by simple “Altbau” structures, a good traffic link and still affordable prices. But despite 100 the available potential, there are still only a few condominium projects here. In contrast, there are presently several new construction projects in operation in the suburban to rural neighborhoods of 90 2005 2010 2016 2020 2025 2030 Mariendorf, Marienfelde and Lichtenrade at the southern edge of the district. Indexed development of population and housing inventory; Index 2005 = 100; Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg, Senatsverwaltung für Stadtent- wicklung und Umwelt (Berlin Senate Administration for Urban Development and Environment) Population Residential units

MITTE 1 POTSDAMER STRASSE FRIEDRICHSHAIN- Style and money have now arrived CONDOMINIUMS SOLD COMPLETIONS KREUZBERG 1 in the Potsdamer Straße. Gradu- Slight increase in sales: Every eleventh Hardly any activity in multi-story construction. CHARLOTTENBURG- ally, galleries and gastro-pubs are apartment sold in 2016 was sold in The number of completed apartments remains low. WILMERSDORF 2 opening: The whole neighborhood is reorienting itself. Tempelhof-Schöneberg.

2 BAYERISCHER PLATZ 3 The established neighborhood TEMPELHOF-SCHÖNEBERG TEMPELHOF-SCHÖNEBERG around the Bayrischen Platz 4 scores points for beautifully 189 restored stucco facades on Completions splendid buildings with small 3,000 gardens out front. It is also –32 % NEUKÖLLN enjoying high demand, especially in comparison from a well-situated clientèle. to prior year 2,500 3 FRIEDENAU 2016 STEGLITZ-ZEHLENDORF Urban, but also dignified living Berlin on in the most densely populated 2,000 the whole 145

place in Berlin. Well-tended old 245 buildings, the “Altbau,” and green front gardens have been decisive 1,500

in making Friedenau one of the 1,775 most beloved residential areas 1,712 in the neighborhood, mostly for First sale Resale the well-educated middle class. 1,000 4 7 5 4 ALT-TEMPELHOF 5.7 500 The small lakes and parks and the Residences sold per 1,000 good traffic connection make BRANDENBURG population this still affordable area a secret (5.7 for Berlin Completed units in multi-story residential construction tip on the residential market. 0 on the whole) (new buildings with three or more units); Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 2015 2016 5 LICHTENRADE AREA Green, affordable and therefore 53 KM2 especially family-friendly are Number of condominiums sold without package sales; the attributes that best describe Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS this single-family-houses area at 51+49 (Panel of Experts for Appraisals) Berlin, Amt für 346,108 Bodies of water the southern edge of Berlin. Statistik (Office for Statistics) Berlin-Brandenburg

82 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 83 There is a clear north/south disparity in prices in this neighborhood: Mostly academicians love the north of this neighborhood. Whereas Schöneberg is catching up with the prices in Charlotten- The south, on the other hand, is experiencing high demand from PRICES burg, the prices in Tempelhof are still extremely moderate. CLIENTS middle-class families.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME A relatively balanced market in terms of pricing. However, Besides Neukölln, the neighborhood with Disproportionately high number of households a disproportionately high number of searches face off against the highest percentage of families. with a high income. At the same time, the a small number of offerings. proportion of low earners continues to sink. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income to 2015 Financing Portion of households in % 1,001—1,500 €/m2 2 % 4 % 26 % 37 % 31 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 5 1,501—2,000 €/m 14 % 10 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 4.5 % 17 % 11 % Completed education University entran- High school Non-high-school + 2 1 2,501—3,000 €/m 13 % 12 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 1 % 3,001—3,500 €/m 16 % 11 % 47 % 27 % 26 % (42 %) (40 %) (18 %) + 2 3,501—5,000 €/m2 29 % 34 % 5,000—5,500 € 47+27+26o 590,000 € 1.7 % > 5,000 €/m2 9 % 17 % Employment based Employed Civil service Self-employed Worker + 1 on position in career 66 % 6 % 19 % 9 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 1.4 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi + 3 66+6+19+9o 4,000—4,500 € 480,000 € 3.4 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg +

5 Residential projects are being developed on the last large open spaces in the neighborhood all around the Südkreuz. Tempelhof, 3,600—4,000 € on the other hand, has not caught the eye of investors. 425,000 € 4.8 %

+ AGE STRUCTURE HOUSEHOLD STRUCTURE TEMPELHOF-SCHÖNEBERG TEMPELHOF-SCHÖNEBERG 5 Residential units The number of 30 to 49 year-olds As good as no change from the prior year. 3,200—3,600 € 0—24 385,000 € 5.0 % is falling rapidly. The number of over Every second person here in 2015 lived alone. 25—49 65 year-olds, however, is rising. + 11

50—199 2,600—3,200 € 2015 340,000 € 10.8 % from 200 Single-person Two-person Multiple-person + 15+ households households households 2,000—2,600 € 28 % 280,000 € 15.3 % 33 % 16+16+ % 50 % 1,500—2,000 € 16.2 % 210,000 € 2016 21 % 21 % 2005 % 20 % 18 % % 1,100—1,500 € 16.2 % 15 % Berlin 160,000 € 15 % 0 % 15 % on the 19 14 % 30

20 whole 50 % in 2005 33 % in 2005 17 % in 2005 2016 51 < 1,100 € 110,000 € 19.7 % Comparison of household size 2005/2015; 2,652 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 4,574 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 84 Condominium Report 2017 / 2018 15+14+33+20+1815+15+28+21+21 Condominium Report 2017 / 2018 85 A large number of large-scale new construction projects and the second largest growth in population in all Berlin show how TREPTOW-KÖPENICK MARKET strong growth is in this neighborhood.

EVERYTHING’S SO BEAUTIFULLY GREEN HERE The science city of Adlershof with its more than 1,000 companies is Germany’s largest research and technology park and also a real advertisement for the neighborhood. In the coming RESIDENTS VS. RESIDENCES years, apartments for around 2,500 people are slated to be built in direct proximity to the In no other Berlin neighborhood have housing campus of the Humboldt University. But the neighborhood is not just coming along well here. inventories risen so significantly. However, the population grew even more. Around 70 % of the surface area is made up of water and forest, parks and nature preserves. It is therefore easy to see why the quality of life in most parts of this area is so high. Luxuri- 259,524 Residents in 2016 ous apartments are popping up across from the picturesque Old Town of Köpenick, further 130 south along the Dahme the focus is on spacious family apartments with a garden and view of 138,723 Residential units in 2016 the water. 120

Less middle-class idyllics and more pioneering spirit can be found in Oberschöneweide: 110 The University for Technology and Economics (HTW) has taken up residence in the former industrial halls, and some journals are already calling the Wilhelminenhofstraße the new 100 hip mile. However, the only things there besides an organic burger joint are mostly fast-food places. Treptow-Köpenick counts among the fastest growing neighborhoods in Berlin. 90 Assuring the infrastructure will therefore be key in creating sustainable development. 2005 2010 2016 2020 2025 2030

1 PLÄNTERWALD CONDOMINIUMS SOLD COMPLETIONS If you go by bus along the Treptower Rise of 18 %. Due to the many projects Because of the completion of a number of large-scale MARZAHN- Park, what first strikes the eye are the HELLERSDORF sumptuously adorned art nouveau currently in planning, growth will conti- projects, the leader for the first time among all Berlin’s LICHTENBERG buildings along the Federal highway. nue in the coming years. neighborhoods. These are also very much in demand due to their proximity to the hip

TREPTOW-KÖPENICK 1 neighborhood of Neukölln. TREPTOW-KÖPENICK

2 NIEDERSCHÖNEWEIDE The former industrial site still has 1,984 to recover from its past. But the Completions 5 start has been made: At present, the 3,000 promenade along the riverbank is +100 % 2 in comparison being redesigned and several new to prior year construction projects are being built. 3 2,500 NEUKÖLLN 4 3 ADLERSHOF 2016 Residential projects are popping Berlin on up like wildflowers to quench the 2,000 the whole enormous desire for living space at this prospering scientific center. Ever so gradually, a restaurant scene 1,500 is also developing to serve it.

First sale Resale 4 ALONG THE RIVER DAHME 1,000 990

Several large new construction 772 projects are scoring points here with 7.2 BRANDENBURG direct waterfront. Besides a cozy 883 500 819 atmosphere, there are also a few boat Residences sold per 1,000 slips available for some of the owners. population (5.7 for Berlin Completed units in multi-story residential construction 0 on the whole) (new buildings with three or more units); 5 FRIEDRICHSHAGEN 22+28 Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Busy building activity for single-family 2015 2016 houses characterizes this highly desi- AREA red residential area on Müggel Lake. 168 KM2 In contrast to this, two-to-three-story Number of condominiums sold without package sales; multi-family houses dominate the Green spaces Source: Gutachterausschuss für Grundstückswerte RESIDENTS scene along the lively Bölschestraße 23+25 (Panel of Experts for Appraisals) Berlin, Amt für 259,524 Bodies of water with its hospitable cafés. Statistik (Office for Statistics) Berlin-Brandenburg

86 Condominium Report 2017 / 2018 Condominium Report 2017 / 2018 87 Due to many new large-scale construction projects, the While families have come to appreciate the peaceful average price will rise considerably in the coming years. southern locations along the die Dahme river, young singles PRICES CLIENTS feel the attraction of central Alt-Treptow.

FINANCING POTENTIAL SUPPLY AND DEMAND FOR CONDOMINIUMS 2016 POPULATION STATUS BASED ON INCOME Half of the apartments on offer are below 2,500 €/m². Every other person here has a high school A lot of development in the upper income In the future, offerings will shift into higher price segments due diploma. classes while the average net household to new construction projects in planning. income remains at an already high figure. Price classes Offerings Searches

Net household < 1,000 €/m2 0 % 1 % Comparison income 0 to 2015 Financing Portion of households in % 1,001—1,500 €/m2 6 % 4 % 22 % 38 % 11 % amount (Comparison with Berlin Families Married Immigration background on the whole in parentheses) (22 %) (35 %) (28 %) 2 3 1,501—2,000 €/m 24 % 9 %

> 6,000 € 2,001—2,500 €/m2 > 640,000 € 3 % 19 % 12 % Completed education University entran- High school Non-high-school + 2 1 2,501—3,000 €/m 17 % 14 % ce qualification diploma completion 5,500—6,000 € 2 640,000 € 1.1 % 3,001—3,500 €/m 13 % 12 % 34 % 55 % 11 % (42 %) (40 %) (18 %) +2+ 3,501—5,000 €/m2 16 % 34 % 5,000—5,500 € 34+55+11o 590,000 € 1.9 % > 5,000 €/m2 5 % 14 % Employment based Employed Civil service Self-employed Worker 2 on position in career 67 % 4 % 16 % 13 % 4,500—5,000 € Offerings and searches for condominiums at ImmobilienScout24; 2.1 % (67 %) (4 %) (17 %) (12 %) 530,000 € Source: ImmobilienScout24 MarktNavigator Profi + 3+3 67+4+16+13o 4,000—4,500 € 480,000 € 3.1 % NEW CONDOMINIUM PROJECTS Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Several large-scale projects, some with more than 1,000 apartments are presently in planning. The most new construction activity is 3,600—4,000 € 3.1 % going on in Adlershof and along the Dahme river.

TREPTOW-KÖPENICK 425,000 € TREPTOW-KÖPENICK

+5+ AGE STRUCTURE HOUSEHOLD STRUCTURE Residential units This neighborhood posts the third Slight increase in multi-family households in 3,200—3,600 € 0—24 385,000 € 5.1 % highest average age in Berlin. Above comparison to the previous year. 25—49 all the proportion of 50 to 65 year- 9 olds has grown. 50—199 2,600—3,200 € 2015 340,000 € 9.4 % from 200 Single-person Two-person Multiple-person +19+ households households households 2,000—2,600 € 280,000 € 18.6 % 28 % 31 %

17 50 % 1,500—2,000 € % 210,000 € 17.4 % 23 % 2016 % 21 % +16 23 % 2005 18 % 1,100—1,500 € % 16.5 % 15 % Berlin 160,000 € 13 % 0 % 14 % on the 17

+ 14 % 19 whole 35 4842 % in 2005 40 % in 2005 18 % in 2005 2016 < 1,100 € 110,000 € 18.7 % Comparison of household size 2005/2015; 2,632 €/m² Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg Ø-price first sale and resale 2016 Portion of the population according to income class in the 3,569 €/m² micro-census; the financing potential results from a 30-year Ø-price first sale 2016 mortgage, 4.5 % annuity (2.3 % interest and 2.2 % principal) and a maximum total cost to the household of 40 %; < 18 18—29 30—49 50—65 > 65 Age Source: ZIEGERT Research, Amt für Statistik (Office for Planned condominium projects in multi-story construction Statistics) Berlin-Brandenburg (new buildings with three or more units); Source: Gutachterausschuss für Grundstückswerte (Panel of Comparison of age structure 2005/2016 and Berlin on the whole 2016; Experts for Property Appraisals) Berlin, ZIEGERT Research Source: Amt für Statistik (Office for Statistics) Berlin-Brandenburg 88 Condominium Report 2017 / 2018 14+14+31+18+2315+13+28+21+23 Condominium Report 2017 / 2018 89 The ZIEGERT – Bank- und Immobilienconsulting GmbH is the leading sales company for condominiums in Berlin. In 2016, a total of 1,000 apartments with a total sales volume of 295 million Euros were sold. ZIEGERT and its more than 200 employees IMPRINT offer a 360° service for developers and private buyers that each client can take personalized advantage of segment-for-segment. From acquisition of the building lot for apartment construction PUBLISHER DISCLAIMER projects to target-group-suitable marketing to consulting on fi- ZIEGERT – Bank- und The data used in this market report is nancing for private buyers and even furnishing the property, the Immobilienconsulting GmbH based on external information as well name ZIEGERT stands for top-quality services for everything to Schlüterstraße 54 as ZIEGERT internal data. We accept no do with living in Berlin. In its international condominium market- 10629 Berlin, Germany liability for the correctness of the data ing, ZIEGERT cooperates with Knight Frank, the largest inde- Tel +49 (0)30 880 353 0 used. Any further use, reproduction or pendent real estate consultant in the world. This allows ZIEGERT Fax +49 (0)30 880 353 33 public dissemination of the information used in this market report shall require products to be available in more than 60 countries. ZIEGERT www.ziegert-immobilien.de the prior written consent of ZIEGERT – [email protected] won the 2016 International Property Awards in the Categories Bank- und Immobilienconsulting GmbH. “Best Real Estate Agency Germany” and “Best Real Estate Agen- cy Europe” as well as, together with the Berlin agency TPA, in OVERALL RESPONSIBILITY Member of IVD the category of “Best Development Marketing.” In 2015 and 2016, Nikolaus Ziegert the company was rated Five-Star, the highest rating, in the “Mak- Sven Henkes ler-Kompass” (“Broker Compass”) of the German journal Capital. Dorothea Metasch

RESEARCH Simone Plötzer Christian Döring Till McCourt

EDITORIAL DIRECTION Anke Luttert Dr. André Schlüter

DATA ImmobilienScout24 Panel of Experts of Property Appraisals Berlin ZIEGERT INSIDER Statistics Office Berlin-Brandenburg Senate Administration for Urban Development and the Environment Berlin BECOME AN INSIDER TOO Knight Frank Research WITH OUR EXCLUSIVE FOREWORD Prof. Dr. Michael Voigtländer, Cologne PROFESSIONAL NEWSLETTER Institute for Economic Research (IW)

DESIGN minigram Order at Studio für Markendesign GmbH www.minigram.de [email protected] ILLUSTRATION Susann Massute

PICTURE CREDITS Photographs Andreas Riedel: S. 3, 22, 32 IW Köln: S. 15 Götz Schleser: S. 16 Chris Noltekuhlmann: S. 21, 37, 39 Jessica Wahl: S. 27 Arvo Wichmann: S. 31/32 Nils Krüger/Offenblende: S. 39

Editorial deadline: 1st September 2017 www.ziegert-immobilien.de

»From population changes to construction activity and the level of interest rates, all socioeconomic indicators are in place for a further upswing on Berlin’s residential market.« Nikolaus Ziegert, Founder and Managing Director ZIEGERT – Bank- und Immobilienconsulting GmbH

»In the long run, opportunities are looking up. In a city with growth in both population and the economy, residential and commercial real estate will continue to be appealing.« Prof. Dr. Michael Voigtländer, Cologne Institute for Economic Research (IW)

»In view of low interest rates, an investment in real estate today works like a savings account favored by the financial markets. Even when 100 % of the principal is financed, the rental income usually covers the cost of paying the interest. Anything left over, and any possible supplementary payments, flow into paying off the principal and thus into asset creation.« Sven Henkes, Managing Director ZIEGERT – Bank- und Immobilienconsulting GmbH

»More and more institutional investors are trying to enter into new projects at the earliest possible time, for instance by employing mezzanine financing or through a forward deal, i. e. buying into a project before it is completed.« Michael Seeberg, Chief Investment Officer ZIEGERT – Bank- und Immobilienconsulting GmbH

Contact Paddy Dring Head of International Residential Department +44 20 78611061 [email protected] Claire Locke International Developments Executive +44 20 78615033 [email protected]