In 2013, Berlin approved 40 percent more new-build apartments than the year before. The statistics office confirmed a trend that had been building: investors were planning and constructing far more housing. Demand remained strong.
West Berlin moves back into focus
Since reunification, most new construction had concentrated in the eastern boroughs. In 2013 that picture shifted. The traditional residential neighbourhoods in the west were attracting investors again, led by the Kurfürstendamm and its side streets. Charlottenburg, with Savignyplatz and Fasanenplatz, was particularly popular. Schoeneberg benefited from its reputation as an upmarket residential area, and Potsdamer Strasse was developing into a magnet for galleries and design firms.
Prices for new-build apartments
A study by BulwienGesa analysed 34 new-build projects with around 1,350 units in the western inner-city boroughs. The findings:
- Average purchase price: 4,300 euros per square metre
- Highest: Charlottenburg at 4,730 euros/sqm
- Lowest: Kreuzberg at 3,280 euros/sqm
- Year-on-year price increase: 10.3% on average
- Strongest gains: Charlottenburg (+15.3%) and Wilmersdorf (+9.7%)
Land prices: East and West diverge
TLG Immobilien noted in its market report that land prices were not rising uniformly. In the east, prices increased in basic and mid-range locations. In the west, the rise was confined to good and prime locations. According to TLG, land in these prime western locations cost around 1,000 euros per square metre.
Demand continues to outstrip supply
Despite the uptick in construction, Berlin's market remained characterised by a supply shortage. In 2012, 5,400 apartments were completed and 9,900 approved. Estimated annual demand, according to TLG Immobilien, stood at around 12,000 units. The shortage was most acute in the small and affordable segment. For the Berlin apartment market, the gap between supply and demand was not closing.
