Inflation data from the Berlin-Brandenburg Statistical Office for April 2016 showed that average gross warm rent in Berlin was unchanged year on year, at exactly 0.0 percent. Behind that figure, however, two opposing trends were at work.
Net cold rent rises, ancillary costs fall
Net cold rents increased by 0.5 percent year on year. Ancillary costs, meanwhile, fell by an average of 4.0 percent. The two effects cancelled each other out. Market trends for base rents, however, remained upward.
Heating oil pushes costs down
The main reason for falling ancillary costs: heating oil had become nearly 30 percent cheaper compared to April 2015. Tenants in buildings with oil heating benefited directly. In buildings with gas or district heating, this relief did not apply, meaning total housing costs there likely rose slightly.
For investors, the type of heating system became a factor in evaluating their apartments in Berlin: different energy sources led to different warm rents, particularly in boroughs with mixed building stock such as Neukoelln.
Real value growth despite stagnation
The 0.5 percent increase in net cold rents exceeded the general inflation rate, which stood at -0.2 percent in Berlin in April. Property investments thus continued to deliver real value growth. Stable gross rents also meant that the overall cost burden for tenants did not increase excessively.
