Multi-ethnic hip mix
Neukölln's enormous potential cannot be described without mentioning the challenges that the district faces. In no other Berlin district do so many ethnic groups come together so closely; nowhere else in Berlin there is such a cultural diversity. However, what has long been interpreted as a weakness of Neukölln is increasingly turning out to be strength. The population' s diversity is also expressed in a high level of acceptance for change. The mega-district Neukölln is about to establish itself as a young, impulse-giving and powerful engine in Berlin. In Neukölln you can't watch - you have to keep up. Developments are rapid and not gradual. And unlike before, no new parallel societies are developing, but a young, hungry business culture, from which the established population of Neukölln does not want to be protected, but to profit. Many people recognize the signs and understand that it is not about displacement, but about change. Investors plan coworking spaces and build the necessary apartments for people moving in. Orphaned parking garages are turned into offices, and game halls into functioning retail, catering, office or service structures. The vision for Neukölln is not a protected milieu, but a cosmopolitan, dynamic, real participating community.
Existing buildings
New buildings
Markets
The north of Neukölln is characterised by a well-preserved old building stock from the Wilhelminian period, partly mixed with blocks of flats from the 1930s. South of the circular railway (Ringbahn), single-family house areas, suburban housing developments and large housing estates with many high-rise buildings dominate. The area Karl-Marx-Straße/Sonnenallee is a redevelopment area (Sanierungsgebiet). The quarter is the cultural and social centre for more than 25,000 inhabitants from over 160 nations. It is also the administrative heart of Neukölln. Neu-Britz also has a redevelopment area between Delbrückstraße and Jahnstraße, which will undergo a transformation process with the extension of the city motorway (A 100). In Britz there is both a metropolitan development and further south a more suburban architecture. The 1907 settlement between Pintschallee, Rungius-, Hannemann- and Franz-Körner-Straße is regarded as an urban ideal, as is Hufeneisensiedlung (UNESCO World Heritage Site), which was built in the 1920s according to plans by Bruno Traut and Martin Wagner. Rudow and Buckow are settlements with single-family and multi-family houses and apartment buildings with numerous green areas.
Buy
The scale of the property market and the many different typologies of real estate in Neukölln requires a differentiated view by location and type. The quantitatively largest supply market is in the northern part of Neukölln, surrounded by the Tempelhofer Feld (former airport Tempelhof) in the west, the Hermannplatz and the Landwehrkanal. About 1,360 apartments were offered in this area during the 12-month period, at an average offer price of 4,470 EUR/m².
At 6,300 EUR/m², which are currently asked as an average squaremeter price for new apartments in Neukölln, prospective buyers challenge the quality of microlocations and construction. The prices for new apartments in Neukölln are also increasingly being measured at alternative locations such as Wedding or Moabit.
Price index Neukölln
| Period | Existing buildings Median Offer price | Index (base 10 years = 100) | New buildings Median Offer price | Index (base 10 years = 100) |
|---|---|---|---|---|
| Today | 4,120 EUR/m² | - | 5,980 EUR/m² | - |
| 1 Year | 3,650 EUR/m² | 12.80 % | 5,250 EUR/m² | 13.90 % |
| 3 Years | 2,870 EUR/m² | 43.50 % | 3,630 EUR/m² | 64.80 % |
| 5 Years | 1,980 EUR/m² | 108.30 % | 3,170 EUR/m² | 88.70 % |
| 10 Years | 1,000 EUR/m² | 312.20 % | 1,820 EUR/m² | 228.70 % |
Snapshot
The Bubble Chart shows the supply situation of the last 12 months for the property market in Neukölln. 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 Neukölln. The chart shows price increases and price segment shifts over the 10-year period.
Family houses
The real estate market for family houses in Neukölln consists of pre-war housing developments and various post-war quarters. For a long time, demand for these properties was weak. In fact, there was hardly any fluctuation. Both things have changed in the meantime. With the growing pressure on the inner-city housing market, the mostly compact houses are becoming a sought-after product again. Young families appreciate the mixture of urbanity and family environment. The markets are located in Britz with 80 houses offered in the 12-month period (4,680 EUR/m²), Buckow with 210 Houses at an average of 4,120 EUR/m² and Rudow with 420 at 3,980 EUR/m² average asking price for existing houses.
Rent
In the rental market in Neukölln, the middle and lower price segments prevail across the entire district. In the current period the average offer rent is 11.00 EUR/m². In the housing markets Neukölln Nord and Zentrum the average rent is 12.65 EUR/m². The development to the previous year is about 4.30 %.
In Neukölln there has been lively construction activities in the past few years. Many properties from private residential construction projects are currently coming onto the rental market. In total Neukölln in the 12-month period 390 New construction apartments offered for rent. The current average offer rent is 16.15 EUR/m². In the central districts (Nord-Neukölln, Karl-Marx-Straße) the average offered rent for new developments is 16.15 EUR/m². In housing projects in Buckow and Rudow at 14.60 EUR/m² and 10.00 EUR/m².
Rent index Neukölln
| Period | Existing buildings Median Offer price | Index (base 10 years = 100) | New buildings Median Offer price | Index (base 10 years = 100) |
|---|---|---|---|---|
| Today | 11.00 EUR/m² | - | 16.15 EUR/m² | - |
| 1 Year | 10.80 EUR/m² | 1.90 % | 12.05 EUR/m² | 34.00 % |
| 3 Years | 8.70 EUR/m² | 26.40 % | 9.00 EUR/m² | 79.00 % |
| 5 Years | 7.95 EUR/m² | 38.30 % | 6.40 EUR/m² | 153.20 % |
Snapshot
The Bubble Chart shows the supply situation of the last 12 months for the property market in Neukölln. 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. 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.
Apartment buildings
Residential buildings in Neukölln have risen significantly in price in all Neukölln quarters in recent years. The streets along the Landwehrkanal (Kreuzkölln), at the edge of the Tempelhof airfield (North-Neukölln) as well as the Reuter-Kiez and the Richard-Kiez are presently in focus. Due to the almost area-wide introduction of milieu protection areas, predominantly long-term investors are interested in acquisitions.
Square meter prices for apartment buildings in Neukölln have developed parallel to the overall market since 2012. The former outsider Neukölln has become a sought-after area. In the 10-year period owners can look back on a square meter price increase of about 301.20 %. The number of properties offered on the market has been declining continuously for years. The average offer price for rental houses in Neukölln is calculated over 18 months at approx. 3,130 EUR/m². In some cases price exaggerations lead to a longer stay on the market. In Neukölln, in addition to the framework conditions resulting from the milieu protection, a number of other details have to be considered with regard to the handling. We will be happy to provide you with further information.
| Construction era | Simple to medium locations | Medium to good locations |
|---|---|---|
| 1900 - 1949 | 1,500 - 2,200 EUR/m² | 1,800 - 2,800 EUR/m² |
| 1950 - 1978 | 1,300 - 2,000 EUR/m² | 1,600 - 2,500 EUR/m² |
| 1979 - 2000 | 1,400 - 2,100 EUR/m² | 1,800 - 2,600 EUR/m² |
| since 2001 | 1,700 - 2,400 EUR/m² | 2,000 - 3,200 EUR/m² |
The data in the IVD's Real Estate Price Service are price ranges for transactions that have been notarized.
Milieu protection
In 2016/2017, the district of Neukölln declared the northern areas of the district to be milieu protected areas almost area-wide.
| Milieu protection area | In force since | Area in ha | Extended | Last update |
|---|---|---|---|---|
| Flughafenstrasse / Donaustrasse | 2016 | 86.2 | 2019 | - |
| Körnerpark | 2016 | 41.5 | 2019 | - |
| Reuterplatz | 2016 | 66.0 | - | - |
| Schillerpromenade | 2016 | 92.5 | - | - |
| Hertzbergplatz / Treptower Strasse | 2017 | 75.0 | - | - |
| Rixdorf | 2017 | 85.9 | - | - |
| Silbersteinstrasse / Glasower Strasse | 2017 | 73.0 | - | - |
A preliminary study for Gropiusstadt is already planned.
Is your apartment building located in a milieu protection area or in a "suspected area"? Check it in the GUTHMANN milieu protection map.
General background
Neukölln is industrial district, start-up hub and cultural melting pot. One of Neukölln's major strengths and at the same time chances is its space potential. Despite the high density in the central districts, there is less conflict caused by space competition than in other inner-city districts. 22,000 entrepreneurs, 5,500 companies with around 60,000 jobs do not interfere with modern think tanks and office concepts, nor vice versa. In the years to come, the district may not develop radically, but it will certainly develop in an essential way. Inside, the district centre along Karl-Marx-Strasse will be upgraded. Investors are planning coworking spaces and housing projects, and the spirit of change is attracting young New Berliners, students and young families. Start-ups, bars or hipster restaurants are just as much at home in Neukölln as small manufactories and crafts. In the most popular quarters such as Reuterkiez, Richardplatz and along the Landwehrkanal, pubs and galleries line the streets. The good connection to the future airport BER, the proximity to the economic and scientific location Adlershof and soon Germany's largest hotel complex, the Estrel Berlin, make Neukölln a player in Berlin. It should not be concealed that the positive development of the Neukölln districts is also due to state programmes. There are a total of 11 neighbourhood management areas in the district. What remains is the housing shortage. And unfortunately in Neukölln, too, the focus is on protecting existing structures instead of building new ones. The mood towards investors is suspicious and the protection of the milieu slows down the development of the neighbourhoods, but cannot stop the dynamics in the long run.
Migration
Neukölln continues to internationalize and transfers its population to other districts. At the same time, influxes from the international area have been increasing continuously for years. For years, Bulgaria, Romania and Poland have alternated in terms of international immigration. The middle places are held by Western European countries. Turkey also continues to occupy an important position. The influx of people from crisis areas has abated. The inflows and outflows of the national migrations correspond to the population size of the federal states, with the exception of the suburbs (Brandenburg), which occupies the top position. Significantly more people move from Neukölln to the surrounding communities than vice versa. The trend towards suburbanisation has been going on for years and is an expression of the narrower real estate market in Neukölln.
- All migrations
- International
- National
- Suburban
- Binnen
- Hotspot
Trend
The property market in Neukölln is characterised by persistently high inflows. For 170,775 inhabitants (2017) there are currently about 82,900 apartments available, according to the Office of Statistics. The average - official - household size in Neukölln is 1.67 persons. However, the actual household size is far higher in almost all quarters (see above). According to our calculations, the acute housing deficit amounts to about 20,000 units, not including future growth through inflows. The Neukölln district is currently responding to the shortage situation with further milieu protection areas, pre-emptions and conversion bans. The district is thus effectively freezing the supply and increasing price pressure on the market. Existing properties are rising in price. A part of the evasive movements in the internal relation to other districts is therefore located in the exclusion of people who are looking for a property for their own use. Those who want property are forced to leave Neukölln. Paradoxically, this situation offers opportunities for investors. After all, prices are expected to continue rising sharply over the next few years unless new construction is added to the existing stock.
This report was last updated in May 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.