Market Analysis
Berlin property market
Berlin's outer boroughs: Where investors are finding new locations in 2015
Rising prices in the city centre are shifting attention to Berlin's peripheral boroughs. Treptow-Köpenick and other areas near the S-Bahn ring are gaining traction, provided transport links are in place.
Peter Guthmann
Purchase prices in Berlin's central locations have been rising for years. In Mitte, Prenzlauer Berg and Charlottenburg, it is increasingly difficult for investors to find properties with attractive yields. That is shifting attention to locations outside the S-Bahn ring that were barely on anyone's radar just a few years ago.
Treptow-Köpenick as an example
Berlin's south-east is drawing particular interest. Treptow-Köpenick sits on the route from the future BER airport into the city centre and offers waterfront locations along the Spree, Dahme and Müggelsee that appeal to families and those seeking green surroundings. Parts of Neukölln and Lichtenberg are also gaining attention.
This pattern is not new. Cities like London and Paris went through the same process: once the centre becomes unaffordable for average earners, well-connected outer boroughs gain in value.
Transport links are decisive
The key factor remains infrastructure. A low purchase price counts for little without an S-Bahn or U-Bahn station nearby. Locations along existing rail lines or at transport hubs offer the strongest potential for price growth. New apartments in Berlin are therefore likely to be built increasingly at such sites.
What this means for owners
For owners in the outer boroughs, the trend is positive: their properties gain value as demand spills out from the city centre. Anyone considering selling an apartment in one of these areas will find growing buyer interest.
Investors with a longer time horizon can benefit from still-moderate entry prices, provided they carefully assess the transport connections and the local market development.