The building authorities in Berlin have approved a significantly increased number of building applications for Berlin real estate.
According to the most recent information provided by the Office for Statistics Berlin-Brandenburg, the number increased more than 160 % in the first quarter of 2014. A total of 4,164 building permits were issued in this period.
Even the increase of the land transfer tax rate from 5% to 6% at the turn of the year 2013/2014 could not slow down the dynamic of the Berlin real estate market.
In 2013, more money than ever has been made on the Berlin real estate market. It is interesting to note that the absolute number of purchase contracts with 31,925 compared with 2012 (31,815) remained more or less the same. The related turnover, on the other hand, has increased by 11 % to more than 13.8 billion Euro.
Also remarkable is that the official Berlin committee for real estate registered a decline of more than 8 % in terms of floor area. This means: less floor area was sold for higher prices. Overall, the experts describe 2013 as record year for the Berlin real estate market. The rapidly increasing number of permits for buildings and apartments meets an absorptive market. For 2014 we expect an excess demand. The increasing number of new buildings will lead – on the longer term - to more competition between building projects and in consequence to a certain price pressure. Not quite every Berlin real estate project sells itself on its own, presently. But: Real estate prices in Berlin are continuing to rise. We have analyzed the first quarter of 2014 for you.
Read in our Berlin market report how Berlin real estate develops.