Market Analysis
Berlin Committee of Valuation Experts
Berlin property market 2014: prices up, transactions down
The 2014 market analysis by Berlin's Committee of Valuation Experts shows a split picture: property prices continue to rise while transaction volume drops by 9 percent. What does that mean?
Peter Guthmann
Berlin's Committee of Valuation Experts (Gutachterausschuss) has published its first market analysis for 2014. The result: rising prices alongside fewer transactions. Berlin was increasingly becoming a seller's market.
Fewer sales, higher prices
The committee recorded purchase contracts totalling 12.6 billion euros, roughly 9 percent less than in the previous year. The number of contracts fell by 12 percent to 28,176. After several record years, this pointed to a normalisation. Supply was tightening while demand remained strong.
Condominiums: stable turnover despite fewer sales
The condominium segment showed the market's resilience most clearly. The number of sales dropped by about 10 percent to 17,456 units, yet monetary turnover held nearly steady at 3.5 billion euros (minus 3 percent). That put the average price per sold apartment at around 200,000 euros, implying a price increase of roughly 10 percent year on year.
Apartment buildings: a sharper decline
Residential and commercial buildings saw a more pronounced drop. Sales fell by 32 percent to 1,188 properties, and monetary turnover declined by 14 percent to 4.0 billion euros. Fewer and fewer owners were willing to part with their high-yield apartment buildings. Undeveloped land plots followed a similar pattern, with sales down 25 percent.
What it meant for the Berlin market
The committee's figures show that in 2014 the balance of power shifted further in favour of sellers. Shrinking supply in sought-after locations like Mitte and Pankow met high demand, including from international buyers. For investors, the market trend meant more competition for available properties; for owners, better conditions when selling.