Feb,2024

Apartment Buildings Berlin 2024

Purchase prices on the Berlin multi-family house market are stabilising at a lower level of 11 percent. With 588 closings, the market picked up speed again. Rental income, location, interest rates, general condition and energy efficiency remain key factors. High-equity German buyers predominate at the beginning of the year. 

Apartment house market Berlin 2023

Dear Readers

The Berlin apartment block market is showing a clear upturn. The data from the Berlin Appraisal Committee (GAA) indicates an end to the consolidation phase. This trend is also confirmed by the transactions brokered by Guthmann in the second half of 2023.

Overall, however, purchase prices are stabilising at a noticeably lower level, while transactions are up on the previous year. As of 17 January 2024, 588 transactions were submitted to us by the GAA. The average price per square metre is currently EUR 2,061/sqm gross floor area. This means that real prices have fallen by 11 per cent compared to 2022 and are currently moving sideways in line with the level of 2019. In addition to the high level of interest rates, energy-related aspects and the conservative valuation behaviour of banks are also responsible for the correction. Taken together, almost all old building classes were under pressure in 2023.

As far as investors are concerned, international investors are behaving cautiously. On the other hand, German buyers are taking advantage of the favourable purchasing conditions and increasing their activity. We cannot see any signs of increased selling pressure. It is worth mentioning that many speculative periods from the dynamic market phases in 2013 and 2014 will expire in 2024 and more properties with investment requirements could come onto the market. 

Whatever your individual challenge, we offer you the best basis for your sale or purchase with sound analyses and 18 years of expertise in the off-market brokerage of rental properties. Contact us for a free and non-binding consultation. 

Around one million apartments still running with oil and gas

A look at the housing stock in Berlin shows the scale of the energy transition. In the capital, home to the largest urban housing stock in Germany, around one million apartments are still heated and supplied with hot water using fossil fuels. About 77% of these buildings were constructed before 1986, and around 75% of them are occupied by tenants. (Source: Office for Statistics, results of the 2011 census, status as of 2014)

About us

  • We are a family-run business with a strong emphasis on brokering (selling) multifamily homes in Berlin, while also providing services in marketing, research & analysis, and property management. Every team member undergoes extensive training in real estate economics. We are multilingual and highly specialized. We invite you to consult our selective reference list showcasing a range of multifamily home sales from 2015 to 2023.

We are your go-to address for selling multifamily homes in Berlin. Off-market, discreet, and successful – our track record spans from small rental buildings to complexes with up to 130 units.

Proven Success

Efficiently connecting Berlin rental properties to a global network.

TOP Location Prenzlauer Berg

Block of flats with over 3,000 m² of living space. Milieu protection. Brokered to private buyer off market in 2023.  

District Report Prenzlauer Berg

Spandau: Solid apartment building in a great location

Apartment building with 970 m² living space. 2023 brokered to private buyer off market.  

District Report Spandau

Sanderstraße, Berlin-Neukölln

Apartment building with 30 units under milieu protection. Off market to private buyer.
High multiplier and short marketing time.  

Guthmann Report Neukölln

Gneisenaustraße, Berlin-Kreuzberg

Apartment building with 9 units. Brokered internally to private buyer.
High factor, fast off market sale with bidding process.

Guthmann Report Kreuzberg

Hermannstraße, Berlin-Neukölln

Support throughout the entire sales process. Due diligence and accurate preparation. 
Placement to national buyers.

Guthmann Report Neukölln

Birkenstraße, Berlin-Moabit

Potential analysis, rent adjustments, marketing concept and internal placement.
Purchase price factor 34.3

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Stephanstraße, Berlin-Steglitz

Top address in Steglitz, old building in excellent condition. 
Generational ownership, sold for reasons of age. Factor on request.

Guthmann Report Steglitz

Kienitzer Straße, Berlin-Neukölln

Residential and commercial building, redevelopment property, Kiez location, milieu protection
Discreet off market brokerage to international clients

Jetzt informieren

Schnellerstraße, Berlin-Treptow

High-quality refurbished residential and commercial building, milieu protection.
Factor and price per square metre on request.

Guthmann Report Treptow

Wrangelkiez, Berlin-Kreuzberg

Apartment block: 20 apartments plus commercial, milieu protection
Price on request, international seller, national buyer

Guthmann Report Kreuzberg

Leykestraße, Berlin-Neukölln

MFA with space reserve, 32 units, 2 commercial units. Preparation AB, TE, global off market sale
Factor on request 

Guthmann Report Neukölln

Weberplatz, Potsdam

Apartment block in listed ensemble in "Weberviertel" with commercial remises
Due diligence, off market mediation for international sellers

 

Admiralstraße, Berlin-Kreuzberg

Dwelling in double pack with roof blanks
Off market sale from fund portfolio to private buyer

Guthmann Report Kreuzberg

Brunnenstraße, Berlin-Mitte

Dwelling with running public subsidy (IBB), 9 apartments, 2 commercial units, large shed
Quick mediation to international private buyer

Guthmann Report Mitte

Gervinusstraße, Berlin-Charlottenburg

Dwelling with roof blank and building potential of a side wing destroyed in the war
Internal brokerage, due diligence, preliminary examination of buildability

Guthmann Report Charlottenburg

Bastianstraße, Berlin-Wedding

Partially refurbished apartment building with 31 units in the Milieuschutz investigation area.
Trustworthy marketing for private person, due diligence, examination of roof extension

Guthmann Report Wedding

Claszeile, Berlin-Zehlendorf

Well-maintained apartment building with 13 apartments and parking spaces.
Off market from family ownership to private buyer.

Guthmann Report Zehlendorf

Reichenberger Straße, Berlin-Kreuzberg

Well-maintained post-war building with 12 residential units and large plot of land
Off market from private to private, due diligence, preliminary examination at the building authority

Guthmann Report Kreuzberg

Biebricher Straße, Berlin-Neukölln

Grand Wilhelminian style building with 33 units and extended roof
Swift off market sale, due diligence

Guthmann Report Neukölln

Weserstraße, Berlin-Neukölln

Solid 1990s MFH in Kreuzkölln.
Internal off market mediation following excellent cooperation with owners. 

Guthmann Report

Pricing factors for 2024

The market value of your rental property is influenced by a number of key figures. Rental income, location factors, technical condition, interest rates and energy efficiency are the most important factors.

  • Technical Condition & Energy Backlog
  • Rental Income
  • Interest Rates
  • Location Quality & Demographics

Market dynamics and price development

As at 18 January 2024, the average purchase price for apartment buildings in Berlin was EUR 2,061/m² of value-relevant floor space. Overall, notarised prices fell by 11 per cent from 2022 to 2023 and are at level of 2019/2020. Only in a few districts were rental properties able to maintain their values and factors.

ø Preisniveau in €/m² *wertrelevante Geschossfläche

Altbezirk / District ø 2019* ø 2020* ø 2021* ø 2022* ø 2023*
Neukölln 1919 1831 1884 1996 1856
Mitte 3472 3006 3528 3910 3346
Tiergarten 1899 2062 1941 2275 1384
Wedding 1936 1891 1968 1902 1686
Prenzlauer Berg 3528 2314 2456 3059 1984
Friedrichshain 2419 2149 2231 2320 1957
Kreuzberg 2030 1992 2128 2326 1782
Charlottenburg 2424 2489 3227 2650 2467
Spandau 1604 1597 1830 1946 1734
Wilmersdorf 2989 2601 3334 2804 3288
Zehlendorf 3403 4224 4463 3092 3000
Schöneberg 2126 2042 2361 2611 1865
Steglitz 2244 2193 2093 2606 1914
Tempelhof 2073 1822 2195 2322 1722
Weißensee 2153 1712 2067 2230 2721
Pankow 1674 1938 1983 2332 2222
Reinickendorf 1765 1829 2163 2086 2068
Marzahn 1896 2494 2359 2215 2544
Hohenschönhausen 1679 1919 2732 2116 1968
Hellersdorf 1851 2293 2500 2682 1899
Gesamt Berlin 2040 1945 2167 2327 2061
Quelle: Gutachterausschuss Berlin, eigene Auswertung und Darstellung

Average price level by district

After prices for apartment buildings in Berlin have risen across the board in recent years, there is currently a greater differentiation by location and quality. We have used data from the Berlin Expert Committee to determine the average price level and price ranges for the 22 old districts of Berlin. Looking at Berlin as a whole, the average asking price for residential and commercial properties is 2,061 EUR/m² of value-relevant floor space. 

We will be happy to provide you with a reliable analysis of how you can optimise the achievable sales value of your apartment building in Berlin following an individual examination

Price ranges by districts

Jahr Mitte Tiergarten Wedding Prenzlauer Berg Friedrichshain Kreuzberg Charlottenburg Spandau Wilmersdorf Zehlendorf Schöneberg Steglitz Tempelhof Neukölln Treptow Köpenick Lichtenberg Weißensee Pankow Reinickendorf Marzahn Hohenschönhausen Hellersdorf Jahr
2018 1.267 bis 5.247 1.255 bis 4.447 950 bis 3.004 1.582 bis 3.510 888 bis 5.793 1.165 bis 5.655 1.350 bis 6.401 301 bis 11.919 1.048 bis 5.366 1.526 bis 7.453 1.068 bis 3.089 1.065 bis 3.687 983 bis 2.817 695 bis 4.849 1.062 bis 3.873 1.081 bis 2.066 844 bis 4.840 805 bis 2.379 468 bis 4.652 570 bis 5.695 1.350 bis 2.959 500 bis 2.097 857 bis 2.320 2018
2019 1.208 bis 6.168 1.425 bis 3.647 874 bis 3.154 1.461 bis 4.964 1.395 bis 3.404 1.082 bis 4.197 1.423 bis 11.340 606 bis 3.192 1.601 bis 9.143 2.446 bis 5.173 1.314 bis 3.917 1.164 bis 4.071 862 bis 5.997 1.032 bis 2.941 1.318 bis 2.656 1.579 bis 2.650 698 bis 4.630 1.000 bis 3.376 671 bis 3.090 396 bis 4.839 1.018 bis 2.339 1.382 bis 2.028 846 bis 3.858 2019
2020 1.594 bis 8.481 1.454 bis 2.811 1.003 bis 4.084 1.310 bis 3.280 1.248 bis 3.284 1.424 bis 4.894 1.364 bis 6.181 431 bis 5.758 1.151 bis 10.526 3.230 bis 4.837 1.363 bis 4.841 1.637 bis 3.183 770 bis 4.909 592 bis 4.392 986 bis 4.069 930 bis 5.683 1.230 bis 5.748 1.126 bis 4.594 895 bis 2.819 654 bis 5.248 1.589 bis 3.255 1.729 bis 2.307 1.495 bis 3.090 2020
2021 1.603 bis 8.475 1.106 bis 3.422 841 bis 5.446 1.436 bis 6.835 1.314 bis 6.696 1.167 bis 4.264 1.570 bis 16.262 841 bis 4.633 1.596 bis 7.347 2.560 bis 6.944 1.625 bis 7.047 1.489 bis 5.253 1.125 bis 4.644 896 bis 6.326 1.794 bis 5.217 984 bis 5.812 1.142 bis 4.960 1.390 bis 3.167 1.109 bis 6.111 601 bis 3.873 2.006 bis 3.012 1.525 bis 4.482 1.248 bis 3.389 2021
2022 1.489 bis 16.844 1.193 bis 3.702 1.358 bis 3.867 347 bis 7.736 458 bis 3.141 862 bis 5.068 1.707 bis 6.579 472 bis 6.013 874 bis 7.043 1.976 bis 3.897 1.735 bis 4.707 1.799 bis 3.821 1.232 bis 3.670 824 bis 4.515 1.467 bis 2.931 1.716 bis 3.999 287 bis 6.116 1.691 bis 3.186 1.421 bis 5.626 954 bis 5.094 2.195 bis 2.733 1.081 bis 2.150 1.717 bis 4.312 2022
2023 2.158 bis 5.777 1.475 bis 1.750 919 bis 2.467 1.167 bis 2.964 1.374 bis 2.844 911 bis 6.567 1.093 bis 3.870 1.003 bis 4.608 203 bis 6.024 - 1.339 bis 1.993 1.827 bis 2.082 1.252 bis 2.570 886 bis 5.285 - 2.302 bis 3.520 357 bis 2.538 1.247 bis 5.177 1.424 bis 4.083 909 bis 4.065 1.266 bis 4.667 1.572 bis 3.585 1.425 bis 2.523 2023
Quelle: Gutachterausschuss Berlin, eigene Anfrage

Interest Rates, Multipliers and Price

The "multiplier" or factor represents the multiple of the annual net cold rent of a property. The factor indicates how many years it takes for the purchase of a property to amortize through rental income. In times of low interest rates, the calculation is relatively straightforward, even though it doesn't take into account investments, rent increases, and capital expenses. The calculation is as follows: Factor = Purchase Price / Annual Net Cold Rent. As a result of higher interest rates, capital expenses increase, reducing profitability. In this situation, investors increasingly base their purchase decisions on a sustainable combination of location, property condition, and expected growth potential.

Energetical Aspects

  • A crucial factor for a smooth sale without renegotiations is the quick and seamless due diligence carried out by the client.

Are you considering selling your apartment Block in Berlin? Our strategies and assessments are in demand internationally.

Dipl.-Ing. Almut Guthmann Prokuristin

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Typical timing of a sale

The transaction duration for the sale of a multi-family house (MFH) in Berlin can be expedited and made more efficient and secure through professional preparation and execution. 

  • Consultation: Clarifying the initial situation and determining a market-appropriate price.
  • Professional Documentation: Accelerating the review by clients and banks, fostering trust through transparency.
  • Marketing: Discreet off-market brokerage within a solvent internal client base.
  • Contract Handling: Contract review with lawyers and notaries, notarization.
  • District Review Period for Preemptive Right (Read our blog post on the preemptive right).
  • Completion and Payment Due.
  • After Sales: Smooth transition and follow-up support.

Strategic Roadmap

The current situation on the market for multi-family houses in Berlin is challenging. Although the market is picking up again after a quantitative slump, the trend varies widely across the districts. Even the decline in overall sales cannot be applied to all locations. Specific property characteristics such as maintenance, energy efficiency, potential for expansion and rental development must be in line with the purchase price and future capex, especially since sharply higher lending rates and much higher equity requirements for buyers are significantly reducing risk appetite. At the same time, rental demand in Berlin is so high that the fundamental question of whether an apartment building in Berlin makes sense as an investment really does not arise. 

Despite some gains here and losses there, the numbers point to a cooling of the market. This makes it all the more important to remain calm and avoid hasty sales. With the right strategy and good preparation, we can handle your sale successfully and profitably.  

The keys here are careful preparation, including transparent documentation of your property, a targeted marketing strategy and a focus on maximizing your proceeds. Proper preparation allows potential buyers to better understand investment risk and efficiently navigate the due diligence process. A well-planned sales strategy can counter trends and prevent value erosion.

Our goal is to help you overcome these challenges and make the sale process as efficient and profitable as possible. 

Regulation: What could still come

Although there is currently less talk about regulation, there could be new measures coming for landlords/property owners, considering the rising rents.

There are several points on the political agenda:

  • Tightening of rent control, e.g. a legislative proposal from Hamburg and Bremen: Federal Council try to stop furnished rental
  • An expert group in the Bundestag is working on the revival of preemption rights
  • The Greens and the Social Democrats are considering a rent moratorium, meaning a freeze on rent for a certain period of time
  • Profit taxation. The abolition of the speculation period or extension of the holding period is being discussed repeatedly
  • Reduction of the permissible rent increase from 15 to 11 percent over 3 years
  • It has been decided that municipalities are obliged to create a standardized rental index

In the regulatory radar, we have summarized the proposals circulating regardless of their feasibility.

This report was last updated on 23.02.2024 .

Disclaimer

The Guthmann Market Report is a semi-automated report about the property market in Berlin. All information has been carefully researched and is given to the best of our knowledge and belief. We assume no liability for completeness, deviations, changes and errors. Our report does not represent an investment recommendation.

Sources

Amt für Statistik Berlin-Brandenburg: Einwohnerregisterstatistik (Bewegungsdaten), Fortschreibung des Wohngebäude- und Wohnungsbestandes, Ergebnisse des Haushaltegenerierungsverfahren KOSIS-HHGen, Baufertigstellungen. IMV GmbH: Rohdaten Preise und Mieten. Senatsverwaltung für Stadtentwicklung und Wohnen: Umwandlungsdaten (2018), Geoportal Berlin (FIS-Broker). Immobilienverband Deutschland IVD (2018/2019): Immobilienpreisservice 2018/2019.

Methodology

Housing deficit (Treemap): The Statistics Office updates the household data based on the 2011 micro-census. Determination of household count and statistical household size via household generation procedures (KOSIS). We calculate the real household size / housing deficits via the ratio number of inhabitants to number of apartments.
Purchase prices and rents (charts and reports): Calculation of the median on the basis of raw data, own visualization.
Migrations: Aggregation and visualization based on transaction data.

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