Strong growth in residential construction
The construction boom in Berlin continued. In April 2016, revenue from residential building at larger construction firms rose 62.5 percent compared with April 2015, according to the Berlin-Brandenburg statistics office. The construction sector as a whole grew 43.1 percent to 232.6 million euros.
The figures reflected the high demand for new apartments in the capital. Continued population growth and low interest rates kept investment activity high.
Order intake nearly doubles
Even more striking than revenue was the surge in new orders: up 120.9 percent to 277.5 million euros. This near-doubling secured workload for construction firms for months ahead. Employment in Berlin's construction sector grew 6.0 percent in parallel, reaching 12,318 workers.
What it meant for investors
The figures sent mixed signals. On one hand, strong demand confirmed Berlin's appeal as a location. Existing properties benefited from rising comparable values. On the other hand, fully booked construction firms drove up building costs. Skilled labour and materials became scarcer, and projects risked becoming more expensive and delayed.
Pressure on construction capacity was particularly high in central boroughs like Mitte. In emerging locations such as Lichtenberg, construction activity was strong, with prices rising at the same time. The market data showed that investors who planned early with reliable construction partners were best placed to benefit from the momentum.
