Berlin Real Estate: ownership rate increases only slowly.

by Peter Guthmann Published on:

The number of Berliners who own their home is increasing only slowly, despite the real estate boom in Berlin. We have compared the development from 1993 to 2011 for you. According to figures of the Statistical Office, in 1993 10 percent of Berliners lived in freehold flats (condominiums). In 2011 (date of last survey) 15.4 percent of the Berlin properties were condominiums. In the national ranking the average Berliner ownership rate relegated to the last place. Germany-wide the quota of freehold is about 43 percent. Despite the increasing number of owner-occupied homes and the construction boom in Berlin, the low rate is a problem for the city. A equilibrated mix of rental apartments and condominiums is important for socially stable microstructures in the town and in the neighborhoods. Main reason for the high rental rate is the very low rent level in Berlin over decades. Second, governmental funding programs were cut and the real estate transfer tax (land acquisition tax) was risen from 3,5 percent to 6 percent in a short period. At the same time the income situation of Berlin households is inferior to other German regions and cities. With a disposable income per capita of EUR 17,601 Berliners dispose 85.8 percent of the national average.