Building Senator Andreas Geisel presented Berlin's urban development priorities for 2016. The headline figure: Berlin has land potential for around 150,000 apartments. Implementation, however, is progressing slowly.
15,000 to 20,000 apartments per year needed
Geisel puts the annual requirement at 15,000 to 20,000 new apartments to keep pace with population growth. The 16 planned amendments to the land use plan only enable construction of about 14,000 new apartments in Berlin for now. That is not enough. Without new sites, the city will be full on paper within ten years.
Molkenmarkt, TV Tower, Alexanderplatz
Three sites in the borough of Mitte are at the center of 2016 plans: the Molkenmarkt (one of Berlin's oldest neighborhoods), the area around the TV Tower, and Alexanderplatz. Geisel had the existing master plan revised and now sees room for new construction: "We have found a solution that respects existing buildings while allowing for something new. This is the message to investors, who should take the opportunity to build up to 8 new high rises there."
The gap between plan and reality
150,000 apartments sounds like a lot. But years separate land potential from actual building permits. The market data shows that planning and approval processes are the real bottleneck. Creating building rights as quickly as possible is what matters most. As long as this gap persists, pressure on the housing market remains high.
For owners of existing properties, this means demand continues to significantly exceed supply. Those considering a property valuation are operating in an environment that supports price appreciation.
