Rent index 2013: Berlin's average rent rises to 5.54 euros per square metre

Senator Michael Mueller has published the Berlin rent index 2013. The index is produced every two years together with tenant and landlord associations and serves as the reference for rent increases up to the local comparative rent. The data are based on a survey as of 1 September 2012.

The figures

The weighted average net cold rent stands at 5.54 euros per sqm. In 2011 it was 5.21 euros per sqm, an increase of 3.1%. According to the Senate, this is a moderate figure given the tight market.

Above-average increases were recorded in three segments:

• Pre-war buildings (construction year up to 1918)
• Basic residential locations
• Small apartments

Below-average growth was seen in buildings from 1950 to 1990 (East) and in medium and good locations. This suggests a catch-up effect in the previously cheaper segments.

What the rent index means for owners

The rent index is the legal basis for rent increases on existing contracts. Owners of apartments in Berlin can use it to raise rents up to the local comparative level, limited by the 15% cap over three years introduced in 2013. Market trends confirm that Berlin's rental market is growing steadily but facing increasing regulation.

Boroughs in detail: Neukoelln and Wedding

The catch-up effect in basic locations is especially visible in Neukoelln. In the northern part, known as Kreuzkoelln, rents are approaching the level of neighbouring Kreuzberg. Wedding, in the borough of Mitte, is also gaining demand, particularly because of larger apartments at still moderate prices and its proximity to the government district.

Beyond the rent cap and the misuse prohibition, the Senate is also planning the construction of affordable housing. Transaction data from our apartment building market report suggest that the price increase for purchase properties is slowing somewhat. That points to consolidation rather than a bubble.