Market Analysis
Security at Berlin's real estate locations
BBU report: Vandalism damage to Berlin properties at a 20-year low
According to the BBU, vandalism costs among Berlin housing companies are at their lowest since 1997. Annual costs fell to a quarter of the original figure.
Peter Guthmann
Vandalism damage to Berlin residential properties is at its lowest level in nearly 20 years. This is shown by a recent analysis from the Association of Berlin-Brandenburg Housing Companies (BBU).
From EUR 7.1 million to EUR 1.7 million
In 1997, when tracking began, vandalism costs among BBU member companies stood at around EUR 7.1 million per year. Last year, costs were just under EUR 1.7 million, less than a quarter of the initial figure. In total, costs for graffiti, destruction, and other damage from 1997 to 2013 added up to almost EUR 66 million.
BBU board member Maren Kern puts the numbers in context: "We see the sharp decline in vandalism as a sign that people identify with Berlin." According to Kern, the falling damage figures reflect the city's positive development, residents' connection to their neighborhoods, and the result of high investment by housing companies in livable neighborhoods.
What this means for property owners
Lower vandalism damage directly reduces maintenance costs. Fewer repairs, less administrative effort, less tenant turnover thanks to a well kept living environment. For investors in Berlin residential property, this has a positive effect on net yields. An intact environment stabilizes a property's value and contributes to the long term market development.
A city wide trend
The decline is not limited to individual boroughs but is a city wide phenomenon. From established locations in Charlottenburg-Wilmersdorf to emerging neighborhoods in Neukoelln, the numbers point in the same direction. Housing companies' investments in neighborhood quality appear to be paying off.