Rents, Investments, Transactions and Preferred Locations

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Rents, Investments, Transactions and Preferred Locations HousingMarketReport The HousingMarketReport from GSW and Jones Lang LaSalle is the most comprehensive current survey of the Berlin housing market. This, the fourth edition, shows the trends and developments for 2008 for rents, investments, transactions and preferred locations. The rents quoted are listed separately for all 90 postal code areas of the city. Photo: Thomas Röske Thomas Photo: Good prospects for the Berlin: Trend Towards the City Centre western central districts ell-off Berlin tenants are being ever more various scenarios, the result is some 7,500 development. Some of these properties – as Wstrongly drawn into the centre of the additional households a year in need of ad- is the case with the existing housing stock – city, with rents in the central districts increasing ditional housing. are purchased or rented by people who do the most recently. Interest among investors in Incomes have also risen lately. In 2007, the not live in the city and only use them when residential property has now slowed notice- gross domestic product of the city rose by 2.0 visiting. This means that the amount of hous- ably and asking prices have dropped to some percent in real terms; this year, 1.3 percent ing available for actual residents of the city is extent. These are the results of the latest prop- is still expected even though the situation shrinking even further. erty market analysis by GSW and Jones Lang has become more difficult. This is mainly LaSalle, based on data from almost 80,000 thanks to positive development in some key One phenomenon currently the subject of a offers for housing for rent and sale. “In the sectors in Berlin. The health industry already great deal of discussion in the city is the bur- rental market, we are noticing a gradual short- employs 344,000 people, and the number is geoning influx of high-salaried inhabitants into age of housing and a general trend towards rising. As many as 200,000 certain city centre districts central locations,” said Thomas Zinnöcker, people make their living in the Infrastructure quality such as the historical Mitte chairman of the management board at GSW. tourism sector. The creative proving decisive and Prenzlauer Berg. Here, “In the case of buyers, on the other hand, in sectors, with their promising supply has already decreased, many parts of the city we have noticed that future in Berlin, number 147,000 workers. and there are now only very few vacancies. international investors are cautious, banks are Even in the crisis period from 2000 to 2005, Less affluent residents and apartment-hunters more restrictive about loans and interest rates this number rose by about 20 percent. can hardly afford the current prices quoted are increasing.” The growing demand has run up against for rent and purchase any more. Gradually, a shrinking supply of apartments. In 2007, much of the traditional population is being Generally, indicators still point towards a short- around 3,700 homes were created in new replaced. This has been particularly extreme age in the Berlin housing market. On the one and existing buildings. However, this was in parts of Prenzlauer Berg over the last 15 hand, demand is rising. In 2007, the number offset with an unrecorded, but probably far years. In the city as a whole, the population of inhabitants rose for the third consecutive higher figure for housing lost due to demoli- turnover remains high, though districts such year. The main reason for this is the continu- tion, conversion and consolidation. Despite as Friedrichshain-Kreuzberg and certain parts ing surplus in the level of net immigration. But the good economic situation, the number of of Neukölln and Wedding will profit from this. the population statistics have also revealed a new buildings is unlikely to increase in 2008. In a few parts of the city, a slight drop in the “small sensation”: For the first time in decades, Last year, the number of building permits is- population may go hand in hand with rising there have been more births than deaths. And sued dropped by 18.3 percent. Some much- rents if wealthy dual-income and single house- because of the trend towards individualisa- hyped individual examples publicised in the holds replace families. Every year, around tion and the growing number of older peo- media, such as the building of townhouse and 100,000 people move away, and roughly the ple living alone, the number of households luxury apartment complexes in the districts of same number move in. Speaking purely sta- is growing even more strongly than that of Mitte and Prenzlauer Berg, hide the fact that tistically then, more than half the population inhabitants. Taking the average value of these this is mainly a qualitative, not a quantitative has changed since the fall of the Wall. _HousingMarketReport_Berlin_October 2008 The medium-term plans for new city devel- opment projects are predominantly aimed at GSW: Jones Lang LaSalle: wealthy buyers and tenants. These projects Leading the Field in Berlin Global Consultants include the Heidestraße area north of the cen- tral station, parts of what was once Tempelhof Owning and managing some 75,000 Jones Lang LaSalle is one of the world’s airport and the area around the Gleisdreieck homes, GSW is the leading private hous- leading real estate agents and consultants, U-Bahn station in Kreuzberg. The “Medi- ing company in Berlin. It was founded in providing strategic, multi-disciplinary serv- aspree” development straddling the Spree 924 and, through an international consor- ices and solutions for commercial property river in Friedrichshain-Kreuzberg and Mitte tium, was privatised in 2004. Since then, owners, users and investors. the company has been standing up to the The company is active in more than 450 can be included in these projects despite the challenges of the dynamically changing cities in over 50 countries. In 2006, it referendum result against it. The completion property sector. GSW provides tenants and registered an annual business volume of the Berlin-Brandenburg International airport buyers with attractive housing in carefully of more than 2 billion euros. Jones Lang in 2011 will also have consequences: More developed surroundings at good condi- LaSalle provides commercial property own- peace and quiet in the north (where Tegel tions. ers, users and investors with comprehen- airport is located) and more noise – but more The company is customer-oriented, putting sive, integrated property and investment jobs, too – in the southeast. its experience and knowledge of the sector management expertise on local, regional into maintaining and raising the value of and international levels. More than 500 Proximity to public transport, especially the the property. It ensures that tenants feel employees work in the German branches underground and rapid transit (S-bahn) rail happy in all respects with its reliable serv- of Jones Lang LaSalle, located in Berlin, networks, has traditionally been an impor- ices. At the same time, GSW is well aware Düsseldorf, Frankfurt, Hamburg, Munich tant locational factor in Berlin. The city already of its social responsibility for Berlin. and Wiesbaden. has the lowest concentration of cars in Ger- many. As the city centre grows in popular- ity, the trend towards traffic, pollution and In contrast, today’s most affluent districts con- wealthy Berlin residents and newcomers to the noise reduction is likely to last. On the other tinue to have good chances for development. region. “There’s a great deal of movement on hand, the situation for neighbourhoods further This is the case for Grunewald, Dahlem and the market in the Berlin region, and there are outside the centre with inconvenient S-bahn Zehlendorf in the southwest as well as the many exciting developments,” said Andrew connections does not look good. The same northern district of Pankow, which will benefit Groom, head of Valuation & Transaction Advi- applies to socially weak areas, especially if from the closure of Tegel airport. Of all the sory Services at Jones Lang LaSalle in Germany. they are located outside the city centre and if locales in the surroundings of Berlin, the his- “Investors should be selective, though, in terms their architecture and surroundings offer little torical royal seat of Potsdam is developing the of quality of location, immediate surroundings potential for improvement. most dynamically, attracting more and more and the quality of the building itself.” Berlin Barometer District Residents 1) Area in km2 1 Charlottenburg-Wilmersdorf 316,890 64.7 2 Friedrichshain-Kreuzberg 267,920 20.2 8 7 3 Lichtenberg 258,100 52.3 4 Marzahn-Hellersdorf 249,350 61.8 5 Mitte 328,430 39.5 9 5 3 4 6 Neukölln 306,710 44.9 2 1 7 Pankow 363,600 103.1 11 8 Reinickendorf 241,740 89.5 9 10 6 12 Spandau 223,650 91.9 10 Steglitz-Zehlendorf 290,300 102.5 11 Tempelhof-Schöneberg 331,790 53.1 12 Treptow-Köpenick 237,780 168.4 Built-up space Water Forest/park Berlin total 3,416,260 891.9 1) End of 2007 District Population density Vacancy Unemployment rate 3) Immigrants 4) Share of immi- Permits for residents/km2 in % 2) in % grants in % 4) new buildings 5) Charlottenburg-Wilmersdorf 4,878 4.4 14.4 55,566 17.6 197 Friedrichshain-Kreuzberg 13,210 5.1 18.0 59,986 22.5 376 Lichtenberg 4,919 4.7 13.2 20,999 8.2 162 Marzahn-Hellersdorf 4,039 13.9 13.6 9,619 3.9 135 Mitte 8,281 6.2 15.1 94,278 28.8 415 Neukölln 6,811 4.6 18.7 68,193 22.3 26 Pankow 3,498 5.1 11.3 26,478 7.3 750 Reinickendorf 2,700 3.1 13.0 21,924 9.1 135 Spandau 2,439 3.1 13.9 27,929 12.5 87 Steglitz-Zehlendorf
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