Berlin Properties Mitte 2023

Mitte: Berlin's most valuable city centre locations

Brandenburg Gate, Reichstag, Unter den Linden, classical buildings, and cool, international shopping streets. That's Mitte. But it's far more than that. The district, easy to pronounce in any language, is not only a representative of Berlin with its lifestyle hotspots but also an economic powerhouse. Major international software houses, media companies, banks, and large law firms have their locations here. Culturally and politically, Mitte inherently assumes the capital's function. Besides the government quarter with the parliament, chancellor's office, and ministries, most embassies also have their seat here. The international jet-set prefers to linger around Hackescher Markt and Oranienburger Straße, with its galleries, trendy designer stores, clubs, and restaurants. In short: Mitte is the capital's gravitational center in terms of economics, culture, and politics.

No wonder, then, that purchase prices and rents are higher here than anywhere else in Berlin. Accordingly, the property market in Berlin-Mitte is international in character. The mix of old buildings, super-modern gap-fill developments, lighthouse projects and revitalised slabs cannot be found anywhere else.

Property prices Berlin-Mitte

Not a few of the most expensive residential areas in Berlin are located in Mitte. Characteristic is the juxtaposition of high-end residential building projects and municipal housing stock, which has preserved the so-called "Berliner Mischung" or Berlin mix of population composition in many quarters. The average offer prices in the existing segment of approximately 8,220 EUR/m² and approximately 10,450 EUR/m² in the new construction segment, measured against the overall Berlin price level, make a statement.

At first glance, the current market situation with high interest rates and inflation seems to dampen prices. However, if one smoothens the price curve from 2021 onwards, a different picture emerges. Over a period of 24 months, the development is at -2.30 %. So while prices are rising more slowly, they are still within a completely normal corridor. The timing for entry is therefore ideal.

In the 12-month period, 1,630 existing apartments and 100 objects from new construction projects were offered. The latter are currently skyrocketing. Given the low competitive pressure, new construction projects are currently priced at -19.60 % higher than in the comparable previous year's period.

Price segments

The shifts in the price structure are reflected above all in the ongoing decline in supply. Within a period of 10 years, the number of offers has more than halved.

Bird's eye view: Property Prices in Berlin Mitte

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

Trend

Classic Berlin-Mitte offers exclusively good to very good residential locations; the district is home to the most expensive and exclusive residential and business addresses in the city. The average rent and purchase price levels are aimed at an international target group. Additional price dynamics are arising from the improvement in the quality of life. The neighbourhoods are becoming increasingly attractive and do not shy away from comparison with New York, London, Paris or Madrid. One example is Torstrasse, where a fundamental redesign in the coming years will reduce traffic and make the neighbouring quarters more attractive. Traffic lanes will give way to bicycle paths, public transport will be prioritised and outdoor gastronomy will be further strengthened. Whether Scheunenviertel, Linienstraße, Ackerstraße or Brunnen- and Torstraße, the locations and quarters in Berlin-Mitte remain international gold standard and are among the best investment spots in the German capital. Exclusivity is guaranteed, 

Apartment buildings in Berlin Mitte: Ø 4,500 EUR/m²

Difficult to believe that 12 years ago apartment buildings in Berlin-Mitte were still being offered at an average price per square metre of around 1,050 euros. Especially in the areas bordering Kreuzberg, Prenzlauer Berg, Wedding and Friedrichshain, investors in 2006 were not very confident about what the future would bring. A mistake in thinking, as it turns out. Since the end of the 1990s, prices held at a low level; only in 2011 did they begin to rise steadily. The development initially gripped the classic neighbourhoods of the city centre, and then gradually spread to the neighbourhood boundaries to Kreuzberg, Wedding and Friedrichshain, driven by increasing new construction activity. All locations in Mitte still offer excellent appreciation potential for apartment buildings today, despite high cost prices. Both purely residential buildings and residential and commercial buildings are interesting. In 2023, only 7 apartment buildings had been sold in Mitte by mid-year.

Rental houses in Mitte acyclical

Only in very basic locations in Mitte do prices sometimes fall below 3,500 euros/m² of living space. Calculated on the basis of gross floor area (GFA), the certified purchase prices in 2023, as of July, ranged from 2,673 to 5,777 euros/m² on the so-called value-relevant floor area (GFA). To calculate the living space, we apply a conversion factor of 0.7 (1 wGF = 0.7 WFL). This means that the average price level in the middle of the region is currently around 4,500 euros/m² of living space. 

Do you want to exploit the full potential of your apartment block in Mitte? Our references are convincing.

New construction in Mitte

In the very heart of Berlin-Mitte, the space for new buildings is very low. Accordingly, large-volume projects must either grow in height or build on existing ones. Purely residential uses are rare because land is very limited and very expensive. Most are commercial projects with a residential component. And all projects have one thing in common: the planning is exclusive, high-quality and expensive. The high-rise debate in Mitte is almost as old as the fall of the Berlin Wall. In a rather anachronistic "high-rise model" that many also call bourgeois, an uncompromising, bureaucratic vision of high-rise buildings was most recently developed (at that time still under left-wing leadership) that conveys a rather horizontal view of the world. 

The Alexander Tower at the "corner" of Alexanderstrasse and Grunerstrasse is sometimes attributed to Russian builders (sanctions?) sometimes to a company from Armenia. A large part of the planned 475 units was to be sold on the market as freehold property. Recently, according to media reports, the concept drifted into a mixed use of ownership and serviced apartments. And nothing is growing up on this site yet; construction seems to be stalled. 

But Mitte is more than just the neighborhoods around Alexanderplatz. At the transition to the great Tiergarten, near the Brandenburg Gate and the British Embassy, the city palace "The Wilhelm" will probably be completed in 2023. More than 170 highly exclusive apartments will be developed in a highly exclusive location. Elegant stores on the first floor will ensure that sophisticated international clientele feel at home in the full-service luxury apartments and penthouses. 

A tower at the top address of Alexanderplatz 3, which is driven by the American real estate company Hines, is calculated at up to 300 million euros in construction costs. Whether the 300 million will be enough is unclear, because firstly, the project has not yet been approved and secondly, the location is not entirely simple due to the structural connection to the BVG subway systems. Hines guarantees BVG the elaborate protection and renovation of a subway tunnel, which could result in a cost of around 30 million euros for the corporation, according to media reports

In Berlin-Mitte, almost every location is pure reputation. So is Tacheles, or rather the new construction of a residential complex with around 120 apartments "Am Tacheles." The location of the 11 buildings, including 7 residential buildings and 3 office buildings between Oranienburger Strasse, Friedrichstrasse and Johannisstrasse, speaks for itself. The emerging urban space is being planned by Herzog & de Meuron and Grüntuch Ernst Architekten as well as Brandlhuber+ Muck Petzet; the Swiss architects are providing artistic direction for the project. 

Living will be much more affordable in the new apartment building at Fischerinsel/corner of Mühlendamm, where WBM housing association is building 210 apartments. Construction workers are scheduled to leave at the end of 2023. 

Neighbourhoods in Berlin Mitte

All locations in Berlin-Mitte are characterised by urbanity and many are endowed with central inner-city functions: administration, office, federal government, large law firms, retail or global companies. Everyone is in Mitte, but not everything in Mitte is chic. Many neighborhoods have a high proportion of slab housing mixed with residential projects from more than two decades of post-reunification construction activity. This mixture is a mirror of the society in Mitte and a witness of many epochs. Around 780 slab buildings were built in the years between 1961 and 1989, but with over 3,600 residential buildings, the old building stock in Mitte accounts for the largest segment. Numerous buildings in the western Leipziger Strasse are well preserved in their historical structure and reflect exclusivity. While the Federal Ministry of Finance and the Federal Council are located in this section, residential quarters and commercial buildings with up to 25 floors rise up on Leipziger Strasse in the east. In 1969, the (very popular) residential complexes along Leipziger Strasse saw themselves as a socialist antagonist to the class enemy in the form of the Axel Springer skyscraper on the other side of the Wall. In the "Rosenthaler Vorstadt", late classicism and the Wilhelminian (in German: Gründerzeit) period dominate, mixed with new buildings. The " Vorstadt-Kieze " still attract families. Especially the Arkonaplatz, the area between Torstrasse, Friedrichstrasse, Rosa-Luxemburgstrasse and Spree is very popular. The quarters around Hackescher Markt and Oranienburger Strasse are home to galleries, exclusive designer shops, clubs and restaurants.

Rental market in Berlin Mitte

On the free rental housing market, apartments until year of construction before 2016 are currently offered for about 15.70 EUR/m² living space. Thus the price development is about -1.30 % in comparison with the previous year 15.90 EUR/m². Basis for the calculation were 660 Apartment offers (12 months). Prices in the new construction segment are higher. In the last 12 months 220 apartments were offered on the market. The average bid price during this period was 30.45 EUR/m². This corresponds to a development of the offered rents around -9.50 %, from before 33.60 EUR/m². 

Bird's eye view: Asking rents in Berlin Mitte

Berlin Mitte has one of the highest-priced rental markets in the capital, with prime rents for new leases starting at over 12 euros/m². The majority of new lettings are already above 14 euros/m² net rent.

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.

Building activity in Mitte

Berlin-Mitte occupies a manageable number of 58.000 residential units distributed over 12 statistical planning areas LOR (Lebensweltlich orientierte Räume). However, the construction activity has been very high in recent years. With an average apartment size of 67.4 m², Mitte has the highest proportion of small apartments in Berlin after Lichtenberg. This can also be seen in the statistical household size of 1.64 persons per household. It is only lower in Wilmersdorf and Friedrichshain. In terms of figures, the household size is 1.83 persons per household.

There is a very high amount of construction activity in Berlin-Mitte. In the past 7 years, the housing stock has grown by more than 13%. When and in which quarters (LOR) construction completions were reported, can be seen from the map. (Source: Amt für Statistik Berlin-Brandenburg)

Milieu protection in Berlin Mitte

In the district of Mitte, as of April 2019, one milieu protection area was established.

Based on a study from 2018, ten further observation areas were also investigated. As a result, milieu protection areas were established in Moabit, Wedding and Tiergarten.

Milieu protection map Mitte

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.

Migration

The residents in Mitte are international. Since 2014, the USA has led the influx, followed by Great Britain, Italy, France and Russia. The high-calibre influx strengthens the central function and the perception of the district as an international hotspot. Since 2016, immigrants from China have also been among the top 10. Mitte has a lively exchange with Bavaria, North Rhine-Westphalia and Brandenburg. The most active exchange takes place with the communities directly north of Berlin and Potsdam. Within Berlin, the Mitte district is easily transferred to other districts. Prenzlauer Berg, Kreuzberg and Friedrichshain lead both the inflow and the outflow.