Market Overview
The Berlin property market experienced a long upward trend for over twelve years, driven by low interest rates, population influx, housing deficits, and catch-up potential. However, recently there has been a shift. In 2024, the average certified square meter price for existing properties in Berlin is around 5,105 EUR/m², with the offer value slightly higher at about 5,340 EUR/m². For new constructions, the average certified square meter price in 2023 remained stable compared to the previous year. At the same time it is also clear that the prices have dropped for the first time in 12 years. For those who bought a property 12 years ago, the increase in value is just under 200 percent. Depending on your further investment strategy now could be the perfect window for an exit.
District-Specific Trends
Different districts in Berlin are experiencing varying trends in property prices. For instance, in Tiergarten, the price for existing properties increased by 7.7%, whereas in Zehlendorf, it decreased by 10.6%. These variations indicate that the decision to sell might depend heavily on the specific location of your property in Berlin.
Market Dynamics and Investment Considerations
The investment market for existing apartments in Berlin might see a resurgence in 2024 following a period of consolidation. High construction costs are limiting new constructions, and the conversion ban is preventing new units from entering the market, which could lead to improved yields due to both, rising rents and price corrections. Apartment buildings in Berlin have experienced price fluctuations, with the average purchase price at 2,061 EUR/m² of value-relevant floor space as of January 2024, reflecting a decline from previous years. Here we recommend to get in touch with us in order to evaluate the status quo of you building and how to improve the value before going to market.
Timing and Market Conditions
If your property's value has increased significantly since purchase, selling now could yield a substantial profit despite recent market fluctuations. However, if the property is located in a district where prices are currently falling or stagnant, it might be worthwhile to wait for a potential market recovery or stabilization. On the other hand you should consider new laws and regulations which could bring you into the situation of not foreseen investments, e.g. for energetical modernizations.
Conclusion
The decision to sell a property in Berlin at this moment - or not - should be based on a thorough analysis of the specific district trends, your property's value appreciation, and future market projections. It's essential to consider both current market conditions and personal investment goals. Consulting with a real estate expert who has detailed knowledge of the Berlin market, such as Guthmann Estate, can provide valuable insights tailored to your specific situation.