Berlin housing market 2016: Potential for 150,000 apartments, plans for 14,000

At the start of 2016, a gap separates potential from reality on Berlin's housing market. In theory, the city has land for around 150,000 new apartments. In practice, only a fraction of that will be built any time soon.

14,000 instead of 20,000: the numbers do not add up

Building Senator Andreas Geisel considers 15,000 to 20,000 new apartments per year necessary to keep pace with population growth. The 16 planned amendments to the land use plan, however, only create zoning approval for about 14,000 units. Geisel's calculation: if no additional potential is developed, the city will be full on paper within ten years at most.

Three projects in Mitte

The Senate is focusing on inner city development in 2016. Specifically, zoning plans for the Molkenmarkt area, the TV Tower surroundings, and Alexanderplatz are on the agenda. After revising the master plan, Geisel sees room for something new: "This is the message to investors, who should take the opportunity to build up to 8 new high rises there."

Cracking down on short-term rentals

At the same time, the state government wants to pursue illegal vacation rentals more aggressively. Platforms like Airbnb are to be legally obligated to disclose information about their hosts. So far, enforcement of the ban on misuse of residential space has often failed due to staff shortages in the boroughs, despite numerous complaints from residents. The Senator is therefore planning to deploy more staff. For owners renting out to tourists on a short-term basis, the risk is increasing.

Construction industry on the rise

Market data from the construction sector points upward. According to the Office of Statistics, revenue in the main construction industry rose by 7.7 percent to 224.7 million euros in November 2015 compared to the same month the previous year. Residential construction drove the increase at 26.7 percent. Order intake also grew strongly: up 42.6 percent to 160.4 million euros.