The supply of rental apartments in Berlin declined in the third quarter of 2014. According to a study commissioned by the German Real Estate Association (IVD) Berlin-Brandenburg, the number of apartments in Berlin listed in newspapers and online portals fell by 3.5 percent compared to the first half of the year. In concrete terms, 25,871 apartments were listed for rent, down from 26,819 in the preceding half-year.
Small apartments dominate, larger ones scarce
The analysis revealed clear differences by apartment size. One- and two-room apartments were the most frequently listed, mainly serving students, singles and young couples. For families with children, the picture was different: five-room apartments or houses for rent were almost impossible to find.
This shortage of larger apartments met a financially able demand that went largely unserved.
Reinickendorf offered the most, Lichtenberg the least
Differences within the city were also substantial. Relative to the population, Reinickendorf had the most listings: one per 34 residents. Mitte came second (1:47) and Pankow third (1:53).
The opposite was true in Lichtenberg, where there was just one listing per 121 residents. This pointed to a particularly tight sub-market in which demand far exceeded supply.
What this meant for owners
Less supply against persistently high demand: for property owners, this was a comfortable position. The market development stabilised the value of existing properties and created room for rent adjustments.
Anyone considering selling an apartment or an apartment building found favourable conditions in 2014. The tightening supply sent a clear signal about where the market was heading. In such market phases, a Berlin real estate agent helps translate the supply shortage into the best possible sale price.
