Last Update: 11.10.2019

Investors Guide Berlin Lichtenberg 2019

Boom! In Lichtenberg, construction is in full swing. And more supply leads to less pressure of the housing market and to stable rents. Since the Lichtenberg people know that, building projects are welcome. More people, more homes, more structure. 

Berlin-Lichtenberg

From outsider to hotspot.

Lichtenberg is going to the top. Just a few years ago, the district was considered an underdog. But housing construction, available space and a young population have turned the old-school-district into a newcomer quarter. The typical Berlin blend is created in Lichtenberg: young people, tradition and modernity, dynamism and diversity. The district's economy is characterised by a large number of small and medium-sized enterprises in the trade, craft and service sectors.

Existing buildings

Median Asking price
3,680 EUR/m²
+2.80 %
Median Asking rent
9.90 EUR/m²
+0.70 %

New buildings

Median Asking price
5,080 EUR/m²
+8.00 %
Median Asking rent
12.90 EUR/m²
-6.70 %

Markets

Lichtenberg, after the fall of the Berlin Wall Lichtenberg marked by an outsider image, has been undergoing structural change for a number of years; since 2010 the population of the district east of Friedrichshain has risen significantly after a long period of outmigration. The district is characterised by more than large residential areas in slab construction. Old village centres with nice, Berlin-typical old building quarters alternate with GDR blocks. Both forms of housing are very popular and the vacancy rate, which used to be a major problem for the district, no longer exceeds the fluctuation buffer. Micro-locations with refurbished old buildings attract an in-scene public, especially in Frankfurter Allee Nord, Victoria City and Kaskelkiez (Kiez = quarter). The Rummelsburger Centre establishes itself as an artists' quarter. Lichtenberg consists of a total of 10 very differently shaped districts with more than 30 small districts. Construction activity is high.

Property prices Lichtenberg

There is motion in the housing market in Lichtenberg. The district is well connected, the demand is sustainable and the occupancy potential is very good. Demand includes all sizes, but smaller apartments are preferred. The average apartment size is about 80m². Of a total of about 151,500 apartments in Lichtenberg, about 10,360 units have been converted, which corresponds to an ownership rate of less than 7 percent. On average, current offer prices of approx. 3,680 EUR/m² are called. Altogether in the time period of 12 months about 1,110 Existing apartments were on sale. The price development compared with the same period of the previous year is 2.80 %

The development in the new construction segment is dynamic. In 12 months amounts to approx. 370 apartments were offered at an average list price of 5,080 EUR/m². The price correction for the same period last year is thus 8.00 %

Price index Lichtenberg

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 3,680 EUR/m² - 5,080 EUR/m² -
1 Year 3,580 EUR/m² 2.80 % 4,700 EUR/m² 8.00 %
3 Years 2,120 EUR/m² 73.40 % 4,180 EUR/m² 21.60 %
5 Years 2,020 EUR/m² 82.20 % 3,150 EUR/m² 61.10 %
10 Years 1,270 EUR/m² 190.30 % 1,780 EUR/m² 185.80 %

Snapshot

The Bubble Chart shows the supply situation of the last 12 months for the property market in Lichtenberg. 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.

Price segments

Development of the housing offer (existing apartments) in Lichtenberg. The chart shows price increases and price segment shifts over the 10-year period. 

Property prices Lichtenberg annual cycle

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

Rent prices Lichtenberg

The price correction for re-rentals in Lichtenberg compared to the previous year for all residential locations is 0.70 %. Currently apartments are offered on average at a value of 9.90 EUR/m². Lichtenberg shows that residential construction effectively counteracts the steep rent increases. Between 2013 and 2017, slightly more than 1,700 units were converted, and around 2,550 construction completions were reported during the same period. The construction of affordable apartments and the conversion into residential property go hand in hand in Lichtenberg.

Rent index Lichtenberg

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 9.90 EUR/m² - 12.90 EUR/m² -
1 Year 9.85 EUR/m² 0.70 % 13.80 EUR/m² -6.70 %
3 Years 9.00 EUR/m² 10.40 % 10.90 EUR/m² 18.30 %
5 Years 7.55 EUR/m² 31.80 % 9.45 EUR/m² 36.30 %

Snapshot

The Bubble Chart shows the supply situation of the last 12 months for the property market in Lichtenberg. 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. In Lichtenberg, younger construction year classes dominate the rental market. The majority of the apartments are offered in size clusters of 50 - 75 square metres. Higher rents are usually reserved for new buildings and renovated old buildings. Overall, the rent level is very moderate.

Rent segments

The chart shows the changes in the price structure of the district based on four price segments. How many apartments were offered in the different price segments? The line shows the development of the average offer price per square metre across all apartment types and price segments for existing apartments.

Rent prices Lichtenberg annual cycle

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

Apartment buildings

Apartment buildings in Lichtenberg prove to be a solid investment for different reasons. On the one hand, the population growth of about 35,000 people from 2013 to 2017 will be accompanied by the settlement of new companies and the creation of jobs. At the same time, the migration is occurring into the labour market, which contributes to the economic stabilisation of the neighbourhoods. Moderately rising rents can be expected for the next years, accompanied by a a stable value of apartment buildings. In the districts of Kaskelkiez and Weitlingstraße, where the classical apartment buildings predominate, milieu protection areas were introduced in 2017 and 2018. 

Construction era Simple to medium locations Medium to good locations
1900 - 1949 1,400 - 2,300 EUR/m² 1,700 - 3,000 EUR/m²
1950 - 1989 1,200 - 2,000 EUR/m² 1,400 - 2,700 EUR/m²
1990 - 2000 1,400 - 2,300 EUR/m² 1,700 - 2,900 EUR/m²
since 2001 1,600 - 2,600 EUR/m² 2,000 - 3,200 EUR/m²
Source: IVD Immobilienpreisservice 2018/2019

Milieu protection

In Lichtenberg there are two milieu protection areas in force.

Milieu protection area In force since Area in ha Extended Last update
Kaskelkiez 2017 28.2 - -
Weitlingstrasse 2018 88.0 - -

Milieu protection map Lichtenberg

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 background

The development in Lichtenberg has been unexcited and very positive in recent years. The number of inhabitants is growing steadily, as is the number of the labor force (54.8 percent), of which 94.2 percent are in employment (source: Wirtschaftsbericht 2017, Bezirksamt von Lichtenberg). This puts Lichtenberg among the top 4 districts in Berlin. In 2016, around 11.4 per cent of the workforce were self-employed. The high number of start-ups reflects that Lichtenberg is extremely interesting for small and medium-sized founders. The settlement and establishment of companies leads to a clear growth trend of households with higher incomes. Everything indicates that the positive development that has been going on for years will continue to stabilise. At the same time, construction activity in Lichtenberg is high. Two large hotels with 166 and 151 beds each have been inaugurated. In 2017 and 2018 many apartments were completed in Lichtenberg and further projects are being planned and built. Everything points to Lichtenberg becoming an inner-city growth engine. In the coming years, Lichtenberg will benefit considerably from the ongoing commercial investments in the areas of production, lodging, leisure, trade and creative industries as well as large residential construction projects.

Migration

The population in Lichtenberg has been growing continuously for years. The influxes are carried equally by international migrations and internal migrations. 

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

Trend

Lichtenberg offers what long-term investors are looking for: Growth, increasing demand for living space, commercial space and infrastructure. New jobs support growth and the population benefits from the positive structural developments. With around 2,550 completed apartments in 2017, the district leads the statistics in Berlin and there are space reserves available for further residential construction. Most of the apartments were built in Karlshorst, Rummelsburg and Sewanstraße, followed by Friedrichsfelde and Neu-Lichtenberg. The intensified residential construction leads to a measurable relief on the housing market. Only in the districts Herzbergstraße and Rüdigerstraße larger housing deficits are measurable. Investments in Lichtenberg should not be aimed at high-price segments/submarkets. The conversion rate is low at just under 3,300 units over the period 2013 - 2017. Due to the introduction of the Kaskelkiez and Weitlingstraße milieu protection areas and the application of the conversion ordinance (Umwandlungsungsverordnung), divisions in these neighbourhoods will only be possible in the long term. Interesting options can also result in subsidised residential construction with a long-term investment perspective.

This report was last updated on 11.10.2019 .

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.