The Berlin-Brandenburg Statistics Office has published building permit data for the first three quarters of 2015. The number of approved projects fell to 3,149, down 4.2 percent. Yet total approved apartments reached 14,860, up 3.1 percent year on year. The reason: a sharp increase in conversion work on existing buildings.
New construction declines
Permits for detached and semi-detached houses dropped 13.9 percent. For apartment buildings, the decline was 6.6 percent. Estimated construction costs for all approved projects fell 12.1 percent to EUR 2.5 billion.
Conversions as the biggest growth driver
The most striking figure: construction work on existing buildings will create 3,360 new apartments. That is a 73.6 percent increase over the prior year period. Loft conversions, building extensions and changes of use from commercial to residential account for most of this. The data shows how relevant the potential of existing residential property has become for creating new housing.
Where are most permits issued?
The highest number of residential permits went to Treptow-Koepenick, Friedrichshain-Kreuzberg and Mitte. While Treptow-Koepenick still has larger land reserves, the focus in denser boroughs is clearly on infill development.
What the numbers show
The statistics confirm a trend in the market: rising land prices and lengthy approval processes for new builds make conversions of existing stock more attractive. Even though fewer applications are filed, the number of approved apartments is growing. Berlin's building authorities approved roughly 81 projects per week.
