The Berlin real estate blog

Relevant topics around the Berlin real estate market and interesting contexts, prepared editorially by us. This is our real estate blog.

Many upcoming investment opportunities

Germany’s capital is the city of tenants, which means excellent investment opportunities. Out of a total of 1,9 Mio. apartments in Berlin, 1,6 Mio. of them are rental apartments. About 18 percent belong to housing associations and 12 percent to cooperatives. The remaining 70 percent are owned by big institutions or private persons. A few examples show why the real estate market in Berlin is so interesting despite or just because of the rental market.

Assumption

If 400.000 people move to Berlin until 2030, with 1,77 people per household, around 226.000 apartments have to be built. This means 17.4000 apartments have to be built per year between 2017 and 2030. With 17% of owner occupied housing, around 2.780 freehold apartments per year are theoretically needed.

Are rents in Berlin high?

Ob eine Miete als hoch empfunden wird, hängt vor allem vom Verhältnis von Miete und Einkommen ab. Ein weniger einkommensstarker Haushalt empfindet eine Miete auch dann als Belastung, wenn diese im direkten Vergleich, z.B. mit Mieten aus dem Umfeld, niedrig ist.
Das Thema Mieten entwickelt dann politische Dimensionen, wenn in einem Mietermarkt viele Haushalte in ein Missverhältnis zwischen Nettoeinkommen und monatlicher Mietbelastung geraten. Die Faustregel besagt, dass ein Aufwand für die Kaltmiete zuzüglich Betriebskosten in Höhe von einem Drittel des Nettoeinkommens normal ist. Diese Regel trifft in Berlin auf den überwiegenden Teil des Mietwohnungsbestandes zu.

Tenant protection in Berlin

In recent years, the State of Berlin has introduced several measures to regulate and control the Berlin real estate market:

  • Prohibition of misappropriation: The regulation is intended to prevent the use of apartments as holiday homes. Landlords of holiday homes have to register officially. The two-year waiting period expired in May 2016.
  • Rental price brake: The rent brake decided by the federal government was introduced throughout Berlin.
  • Conversion Regulation: Districts can decide in conservation areas (milieu protected areas) whether or not a conversion of rented apartments into condominiums is approved.
  • The pre-emption right for tenants in the case of first sale of freehold flats after the conversion and the special termination protection against personal use was extended to 10 years.

Sources