Last Update: 02.12.2019

Investors Guide Berlin Friedrichshain 2019

A mix of pre-war architecture, GDR culture and booming international quarters shape Friedrichshain's image. Before the merger with Kreuzberg in 2001, Friedrichshain was an independent district. In heterogeneous locations and quarters, likewise different identities and biographies have merged into a unique conglomerate.

Berlin-Friedrichshain

East-West dialogue

In Friedrichshain past and present, east and west, modern and tradition meet. Whether old storehouses and cold stores along the banks of the Spree, Stalin constructions lining the Karl-Marx-Alle or prefabricated housing estates in the west of the district: Friedrichshain offers lively and popular inner-city quarters across all locations and typologies. On the Spree, a new city quarter has been created around the former solitaire of the Mercedes-Benz Arena between Warschauer Strasse and Ostbahnhof. On other sites, such as the site of the former Bohemian brewery and in Boxhagener Straße, more than 800 apartments will be built in all. The list will continue in the coming years. Friedrichshain breaks through the last effects of the division of Berlin. The district closes gaps between east and west, but also within the district itself.

Existing buildings

Median Asking price
4,840 EUR/m²
+8.20 %
Median Asking rent
14.95 EUR/m²
+6.10 %

New buildings

Median Asking price
7,400 EUR/m²
+6.20 %
Median Asking rent
19.40 EUR/m²
+5.50 %

Markets

The residential areas in Friedrichshain range from simple locations in the northern Friedrichshain to simple to medium locations in the centre, to good residential areas in the neighborhoods on the Stralau peninsula and in the new city quarters along the Spree. While in the west of Friedrichshain the streets are predominantly shaped by prefabricated buildings, in the east old buildings from the Wilhelminian period prevail. The quarters north and south of the former Stalinist boulevard on Karl-Marx- and Frankfurter Allee are very popular. Most locations in Friedrichshain are characterised by very good transport connections and short distances to neighbouring quarters or central hotspots. The density of restaurants and cafés is high. Very much in demand among international buyers, students and young people are the relevant scene neighborhoods such as Samariter and Boxhagener-Kiez which is surrounded by the familiar atmosphere of Revaler Straße and the urbanity of Warschauer Straße / Frankfurter Allee. Right next door is the Simon-Dach-Kiez neighborhood with side streets and a high concentration of bars, clubs, pubs and restaurants. 

Building activity in Friedrichshain

Friedrichshain is an inner city district with a very high density. The housing stock of 75.000 units is spread over 12 statistical planning spaces LOR (Lebensweltlich orientierte Räume). The average apartment size is 68.9 m². Quarters with smaller average apartment sizes can only be found in Mitte and Lichtenberg. The statistical household size in Friedrichshain is 1.60 persons and the calculated household size is 1.80 persons per household.

The building activity in Friedrichshain has been very high since 2014. When and in which quarters (LOR) construction completions were reported, can be seen from the map. (Source: Amt für Statistik Berlin-Brandenburg)

Property prices Friedrichshain

The market in Friedrichshain is dominated by the 1900 - 1920 year of construction class. The price transition from stock to new construction is in the range of 5,000 EUR/m². Interestingly, there are fewer overlaps of new and old buildings than in other districts. The year of construction from 1950 to 1978 is irrelevant, as most of the buildings from this period are communal holdings. In the past 10 years the offer prices in the stock have increased by about 131.10 %. Whoever bought a flat in Friedrichshain 10 years ago in the comparison period paid on average about 2,090 EUR/m². Currently the prices offered in the stock are about 4,840 EUR/m² and for new apartments about 7,400 EUR/m². The trend calculated by us from the purchase price data of the last 10 years points to sustained price increases in the coming years.

Price index Friedrichshain

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 4,840 EUR/m² - 7,400 EUR/m² -
1 Year 4,470 EUR/m² 8.20 % 6,970 EUR/m² 6.20 %
3 Years 3,720 EUR/m² 30.20 % 5,370 EUR/m² 37.80 %
5 Years 3,010 EUR/m² 60.50 % 3,990 EUR/m² 85.70 %
10 Years 2,090 EUR/m² 131.10 % 2,490 EUR/m² 197.50 %

Snapshot

The Bubble Chart shows the supply situation of the last 12 months on the property market in Friedrichshain. The colors mark the year of construction classes, the size of the bubbles the quantity of offers, the location in the coordinate system price radius (square meters) and apartment sizes.

Price segments

The supply of flats in Friedrichshain, which has been declining since 2013, is slightly increasing again and is about 2,190 in the year under review. The price segment of 2,000 - 4,000 EUR/m² has stabilized, at the same time the number of offers in the segment of 4,000 - 6,000 EUR/m² has increased. In the new housing segment, about 410 units were offered in the 12-month period. The average list price for condominiums in new building projects in Friedrichshain is about 7,400 EUR/m²

Property prices Friedrichshain annual cycle

The chart below shows the development of property prices in Friedrichshain on a monthly basis.

Rent prices Friedrichshain

The rents in Friedrichshain have increased over the previous year in all residential areas by about 6.10 % to about 14.95 EUR/m². As already in the past years the offer rents in Friedrichshain differentiate also in 2019 increasingly according to microlocation. New contract rents are higher in the neighbourhoods south of Frankfurter Alle. In the northern direction (Landsberger Alle) and in the western direction (Lichtenberg), the rents on offer fall in relation to the privileged locations. In the new construction segment, various new projects are expected to boost rents. Some projects appeal to a predominantly international audience that does not see rental prices in an inner-city context. The average offered rent in the area of new construction is 19.40 EUR/m². There is currently a flatter price increase for both new lettings in existing and new buildings.

Rent index Friedrichshain

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 14.95 EUR/m² - 19.40 EUR/m² -
1 Year 14.10 EUR/m² 6.10 % 18.40 EUR/m² 5.50 %
3 Years 12.05 EUR/m² 24.10 % 13.05 EUR/m² 48.40 %
5 Years 10.10 EUR/m² 47.90 % 12.60 EUR/m² 53.90 %

Snapshot

The Bubble Chart shows the supply situation of the last 12 months for the property market in Friedrichshain. The colors indicate the year of construction classes, the size of the bubbles the quantity of offers, the location in the coordinate system the price radius (square meters) and apartment sizes.

Rent segments

The chart shows the changes in the price structure of the district based on four price segments.

Rent prices Friedrichshain annual cycle

The chart below shows the development of rent prices in Friedrichshain on a monthly basis.

Apartment buildings

The housing inventory in Friedrichshain amounts to approx. 4,360 buildings. A first wave of modernisation and new construction took place at the turn of the millennium, partly realised by closed funds using public subsidies. Yield expectations could often not be realised in these years, as the local rents were below the subsidised rents. In 2006 it was still possible to acquire apartment buildings in Friedrichshain at square meter prices of less than 1,000 EUR. At this time, many owners were selling apartment buildings, some of which were heavily eroded. The market turned into an oversupply and the buildings changed hands until the 2010s, sometimes at very low prices per square metre. Between 2003 and 2008, around 8,000 apartments in Friedrichshain-Kreuzberg were converted into condominiums and partly extensively renovated. The neighbourhoods east of Warschauer Strasse, north of Karl-Marx-Allee and Frankfurter Allee were undergoing a radical structural change at the time. In the course of the modernization and division of many houses, the population became younger. Depending on the year of construction, apartment buildings in Friedrichshain are being sold in medium to good locations within a price corridor of 2,400 EUR/m² to 3,300 EUR/m². Since 2018, purchase prices have again been differentiated more strongly by location and condition. Even though many apartment buildings in Friedrichshain show a considerable modernisation backlog, the large-scale introduction of milieu protection areas makes basic investments in existing buildings more difficult.

Construction era Simple to medium locations Medium to good locations
1900 - 1949 1,900 - 3,000 EUR/m² 2,400 - 3,300 EUR/m²
1950 - 1978 1,600 - 2,400 EUR/m² 1,800 - 2,500 EUR/m²
1979 - 2000 1,800 - 2,700 EUR/m² 1,900 - 2,800 EUR/m²
since 2001 2,000 - 3,200 EUR/m² 2,600 - 3,800 EUR/m²
Source: IVD Immobilienpreisservice 2018/2019

Milieu protection

As of July 2019, four milieu protection areas have been established in the district in accordance with §172 Para. 1 Sentence 1 No. 2 BauGB. The areas cover a total area of about 175,6 hectares, which corresponds to about 16% of the total area of Friedrichshain district.

Milieu protection area In force since Area in ha Extended Last update
Boxhagener Platz 1999 34.2 - 2015
Petersburger Strasse 2013 86.4 - 2016
Weberwiese 2016 26.0 - -
Stralauer Kiez 2019 29,0 - -

In Friedrichshain further areas are under investigation. In concrete terms, we have information that four study areas are being investigated. It is to be assumed that the determination will be made.

  • Samariterviertel
  • Traveplatz-Ostkreuz
  • Warschauer Strasse (former redevelopment area)

Milieu protection map Friedrichshain

Check in our milieu protection map Berlin whether your property is located in a protection area, an investigation area or a suspected area. Our milieu protection map is continuously revised and updated on basis of the resolutions of the district assemblies (BVV). Please also visit our milieu protection area for further information.

General framework

Friedrichshain merged with Kreuzberg as part of the 2001 district reform. The position of district mayor is provided by Bündnis 90/ Die Grünen, as is the resort for construction, planning and facility management. The district's housing policy is increasingly turning against the free market and is making headlines, among other things, through the effective exercise of pre-emptive rights. Projects have a difficult time in Friedrichshain-Kreuzberg. The processing times are long. Since 2015, the focus of the district has been less on the creation of new housing and more on the purchase of additional stock through pre-emptive purchases.

Structurally Friedrichshain is very heterogeneous. In addition to the large buildings on Frankfurter Allee and prefabricated building sites, well-preserved old building quarters with new construction projects woven into them, e.g. south and north of Frankfurter Allee, predominate. The district is one of the largest supply markets in Berlin. This is partly due to a higher fluctuation of young residents (57% between 18 and 45 years) and partly to larger new construction projects in recent years. Part of the demand overhang is absorbed by increasing household sizes.

Migration

Friedrichshain is an increasingly international district. For the fifth year in succession, population growth is fed by international and national inflows. Clustered according to internal migrations, suburban, international and national movements, it can be seen that for years the district has been transferring population shares to other Berlin districts, while internationally and nationally strong population gains have been recorded. As the statistics show, Friedrichshain is very popular among Western European states and the USA. There is little immigration from Eastern Europe. North Rhine-Westphalia, Brandenburg, Bavaria and Baden-Württemberg are the federal states with the highest immigration rate from Germany.

  • All migrations
  • International
  • National
  • Suburban
  • Binnen
  • Hotspot

Trend

In Friedrichshain, space potential for densification is available, for example, at the 70,000 m² RAW site north of the tracks on Revaler Strasse and the quarter south of the tracks around Persiusstrasse. Despite the generally negative attitude of the district administration towards investors and the expected consolidation of the protected milieu areas as well as the extension of the Conversion Ordinance (Umwandlungsungsverordnung), there is no indication of a decline in purchase prices. The district benefits from the influx of young buyers from Western European countries, and as household incomes rise, the willingness to own and accept residential property grows. At the same time, it is to be expected that the continuing competition between residential and commercial space in central districts will influence price developments. The recommunalization policy of the state and municipalities (districts) is exacerbating the housing shortage in Friedrichshain by preventing partitioning and reducing home ownership. Despite the numerous regulations, Friedrichshain remains an extremely interesting district for medium and long-term investment with great potential. In the large apartment and house portfolio, there is a particular demand for Wilhelminian-style properties close to the neighbourhoods, but also for rental properties from former GDR portfolios that are undergoing a generational change.

This report was last updated on 02.12.2019 .

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.