Last Update: 27.06.2022

Berlin Properties Prenzlauer Berg 2022

Prenzlauer Berg, actually always called "Prenzelberg", found many fans in West Berlin shortly after the fall of the Berlin Wall. That the former workers' district morphed into a Swabian metropolis is a legend. But it is true that a fundamental change occurred in Prenzlauer Berg with the fall of the Berlin Wall. First the scene, later students, then families. In fact a quite normal development...

Berlin Prenzlauerberg

The Trendsetter

Prenzlauer Berg was the first boom quarter of the German capital and plays a pioneering role. Nowhere in the early 1990s did so many people move in as here. However, it is wrong to talk about population exchange. Rather, it was an ongoing process of change that also affected many other quarters in Berlin after the fall of communism; a natural process because the city was no longer divided. In the context of the post-communist era, change and transformation were a cultural shock for many residents. Socialism turned to free economy, many rental apartments to ownership. In the 1980s Prenzlauer Berg bled out from the population. Most of the buildings and apartments had pre-war standards. Coal stove, outside toilets, no bathrooms. The GDR state was not interested in Prenzlauer Berg and relocated many people into the modern prefabricated housing estates in Marzahn and Hellersdorf. The consequence were thousands of empty flats in Prenzelberg and a massively eroded housing stock at the end of the century. The truth is that the house renovations from this time saved the stock from complete decay. With liveable houses the streetscape and the structure of inhabitants changed. The mixture was colourful: creative people, students, international visitors and many people with an unusually high purchasing power for Prenzlauer Berg. In more than 30 years since then, the street scene has evolved. Today in many quarters chic new and old buildings line the streets. The prices for old buildings came almost up to the new building prices. The proportion of academics in some neighborhoods today is up to 75 percent. 

Existing buildings

Median Asking price
6,720 EUR/m²
+7.90 %
Median Asking rent
16.80 EUR/m²
-7.30 %

New buildings

Median Asking price
11,460 EUR/m²
+40.90 %
Median Asking rent
24.10 EUR/m²
+7.40 %

Neighbourhoods in Berlin Prenzlauer Berg

Prenzlauer Berg is not a very large district in terms of area but it borders around with popular neighbours: Pankow, Wedding, Mitte, Friedrichshain and Hohenschönhausen as well as Weissensee. Thanks to its excellent infrastructure, the district is a core area for the surrounding districts. In the northeast there is the park "Volkspark Prenzlauer Berg", built after the Second World War as a hill of wreckage. Besides the little lakes in the Volkspark Prenzlauer Berg and in the Ernst-Thälmann-Park, water areas are otherwise quite rare. Among the most sought-after neighbourhoods there are Kollwitzplatz, Arnimplatz, the quarters around Bornholmer Strasse and Wisbyer Strasse and various micro-locations along Greifswalder Strasse. The demand is high everywhere. The discrepancy between statistical and arithmetical household size shows that the market is in relative equilibrium. Helmholtzplatz and Bötzowviertel are particularly popular places for families. The Bötzow quarter is home to Kurt Schwitters School, one of Berlin's largest schools. The Kastanienallee is also called "Castingallee". Here and in the Gleim quarter, not far away, international life is bustling. On weekends the Mauerpark is a meeting place for people from Prenzlauer Berg and an international crowd. Prenzlauer Berg is practiced calmness with a dash of normality in everyday life.

New construction Prenzlauer Berg

Prenzlauer Berg offers many of the most popular residential locations in Berlin. The appeal of one of Germany's largest old Wilhelminian-style districts is particularly strong for a young, international and even class-conscious clientele. Families, on the other hand, appreciate the high density of schools, strong social communities and the vibrant daytime life in the numerous cafes in the neighborhoods. In the evening, when the bistros close their doors, hundreds of smaller and larger pubs and restaurants take over. Around 165,000 people live in an area of about eleven square kilometers, and after several waves of redevelopment and redensification, projects are now being developed on the few remaining vacant building sites that are priced in line with the top league. 

For example, the most expensive new construction project in Prenzlauer Berg in recent years was completed in Pappelallee in February 2021. In addition to a REWE and an underground garage with 70 parking spaces, 240 residential units have been developed and completed here.  

A little further south, 117 residential units were under construction since August 2020 with a total investment of around 450 million euros. In addition to around 7360 m² of residential space, 1830 m² of commercial and retail space is also being developed here. The project will be completed in the 3rd quarter of 2022. 

Berlinovo is also about to hand over a mixed-use project in Walter-Friedländer-Strasse. Here, 235 residential units on six floors have been developed in recent years. This also includes two commercial units and approximately 5000 m² office space. With a gross floor area of 16,000 m², it is one of the largest new construction projects in Prenzlauer Berg in recent years. 

Building land is rare in Prenzlauer Berg, therefore smaller projects are also under development and construction.

In the last 2 years we have counted a total of 30 new construction projects with a construction sum between 3-88 million. Contact us if you are interested in one of the projects.

Property prices in Berlin Prenzlauer Berg

The property market in Prenzlauer Berg is characterised by constant growth in prices and an equally constant decline in supply numbers. In the 12-month period, the price development in the existing property segment 7.90 % and in the new build segment 40.90 %, calculated from 240 offers from projects and attic / penthouse developments. The average asking list price is 6,720 EUR/m² in the housing stock. The average list price across all flat sizes in the new-build segment is 11,460 EUR/m².

Price index Prenzlauer Berg

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Current quarter 6,720 EUR/m² - 11,460 EUR/m² -
1 Year 6,230 EUR/m² 7.90 % 8,130 EUR/m² 40.90 %
3 Years 5,340 EUR/m² 25.90 % 6,650 EUR/m² 72.40 %
5 Years 4,380 EUR/m² 53.40 % 5,430 EUR/m² 111.10 %
10 Years 2,540 EUR/m² 164.50 % 3,490 EUR/m² 228.20 %

Bird's eye view: Property Prices in Berlin Prenzlauer Berg

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

Development of property price segments in Berlin Prenzlauer Berg

The development of the purchase price segments shows a shortage of supply. Supply and demand are drifting further apart in Prenzlauer Berg than in other districts. There are no more properties on offer in the segment below 2,000 euros/m². Prenzlauer Berg is clearly becoming one of the most valuable locations in Berlin. 

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Rental market in Berlin Prenzlauer Berg

The rental offer in Prenzlauer Berg in the past 12 months was of about 1,600 apartments. The average (offered) rent for existing apartments in this period was about 16.65 EUR/m². For new apartments one had to pay on average 22.45 EUR/m². The price development for existing apartments was  -7.30 %, for new apartments 7.40 %.

Rent index Prenzlauer Berg

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Current quarter 16.80 EUR/m² - 24.10 EUR/m² -
1 Year 18.10 EUR/m² -7.30 % 22.45 EUR/m² 7.40 %
3 Years 14.95 EUR/m² 12.20 % 19.00 EUR/m² 27.10 %
5 Years 12.35 EUR/m² 36.20 % 15.30 EUR/m² 57.40 %

Bird's eye view: Asking rents in Berlin Prenzlauer Berg

The bubble chart shows the supply situation of the past 12 months on the property market in Prenzlauer Berg. 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. Construction activity in the rental housing sector in Prenzlauer Berg is very low. Price-fixed housing is mainly offered in the 1950-1978 construction year class. The widest range can be found in old buildings.

Development of rental price segments in Berlin Prenzlauer Berg

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 in Berlin Prenzlauer Berg

The district of Prenzlauer Berg has been part of Pankow since the administrative reform of 2001. In the north of Pankow, the development typology in Buch, Buchholz and Karow is characterised by skyscrapers and prefabricated buildings (Plattenbauten). In Prenzlauer Berg, to the south, the dominant cityscape is a mixture of Wilhelminian-era apartment buildings mixed with modern architecture. The building stock in Prenzlauer Berg is just over 7,100 units with about 100,000 flats. The housing typology makes Prenzlauer Berg a family district on the one hand (many large flats), on the other hand 39 per cent of households are one-person households. Three-room flats make up the largest share with about 37 per cent of the housing stock, followed by four-room flats. Only just under five per cent of the dwellings are one-bedroom flats.

The market for apartment buildings in Prenzlauer Berg developed the greatest momentum in the 10-year trend in 2009, with almost 100 transactions. Until 2022, the transaction volume decreased steadily, with rising and recently stable price levels.

Related topics: Milieu protection  Rent cap  Residential building report

The table shows the values for multi-family houses published by the German Real Estate Association (IVD) for Pankow by location and year of construction.

"Baujahresklasse" = year of construction.
"Einfache bis mittlere Lage" = Simple to good area. 
"Gute bis sehr gute Lage" = Good to very good area.

Baujahresklasse Einfache bis mittlere Lage Mittlere bis gute Lage
1900 - 1949 1.400 - 2.700 EUR/m² 2.000 - 3.700 EUR/m²
1950 - 1989 1.400 - 2.300 EUR/m² 1.900 - 3.100 EUR/m²
1979 - 2000 1.600 - 2.600 EUR/m² 2.300 - 3.300 EUR/m²
ab 2001 (ohne Erstbezug) 1.700 - 3.000 EUR/m² 2.500 - 3.800 EUR/m²
Quelle: IVD Immobilienpreisservice 2021/2022

Trend in Prenzlauer Berg

The great upheavals in Prenzlauer Berg took place many years ago. When other districts were still in their infancy, Prenzlauer Berg was already experiencing a local real estate boom. In addition to many private buyers, international companies also invested in the stock. The trendy neighbourhood soon became a large, established and middle-class neighbourhood. The heterogeneous real estate landscape of renovated old buildings and new construction from more than 15 years of active building activity has shaped not only the streetscape, but also the demographics. The high household incomes in comparison to the rest of Berlin are an expression of the cut through society in Prenzlauer Berg.

The housing stock in Prenzlauer Berg is around 100,000 flats. Around 65,000 Prenzlauer Berg residents live in one-person households, including almost 39,000 who live as one-person households in flats with 3 rooms or more. Prenzlauer Berg thus reveals how urgently new construction is needed in Berlin. If aging and shrinking households cannot find smaller flats on the market, there will inevitably be under-occupancy. Families lose out. The demand in Prenzlauer Berg lies both in the segment of compact flats for one-person households and in the segment of flats with four rooms and more. The real estate market in Prenzlauer Berg is an established market that is running smoothly in terms of price trends in 2022, yet still offers excellent prospects for significant increases in value. 

Building activity in Prenzlauer Berg

The suburb Prenzlauer Berg is part of the administrative district Pankow. Its housing stock amounts to 94.000 units distributed over 15 statistical planning areas LOR ( Lebensweltlich orientierte Räume). With an average apartment size of 73,0m², Prenzlauer Berg is in line with the Berlin average. The difference between the statistical household size (1.65 persons per household) and the calculated household size (1.79 persons per household) is comparatively small.

The peak of construction activity in Prenzlauer Berg was recorded in 2015. 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 Prenzlauer Berg there are currently ten conservation areas (milieu protection areas) in accordance with §172 BauGB with a total area of about 535 ha. This corresponds to about 49% of the total area of the Prenzlauer Berg district.

Milieu protection area In force since Area in ha Extended Last update
Falkplatz 1997 28.2 - 2017
Arnimplatz 1999 50.6 - 2017
Humannplatz 2000 57.2 2017 2017
Ostseestrasse/Grellstrasse 2003 63.4 - 2017
Bötzowstrasse 2014 53.0 2017 -
Helmholtzplatz 2014 67.9 - -
Kollwitzplatz 2014 76.6 - -
Teutoburger Platz 2014 52.0 - -
Winsstrasse 2014 63.8 - -
Danziger Straße Ost 2021 21,9 - -

Milieu protection map Prenzlauer Berg

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 property market in Prenzlauer Berg is an established market, which has been less turbulent with regard to price developments in recent years than the newcomers among the neighbourhoods and districts (such as Neukölln and Wedding). In the early 1990s, many West Berliners moved to the exciting, new and transforming quarters in Prenzlauer Berg. The district quickly became an internationally sought-after location. In a second wave, many properties were renovated and converted into condos. The renewal of the partially heavily eroded apartment and building stock was a matter of time and absolutely necessary, as many buildings were on the verge of not being habitable anymore. The strong demand for ownership (condos) and the fact that there was still limited supply in the eastern part of Berlin led to a local real estate boom.

Until 2001 the number of conversions in Prenzlauer Berg was about 16,000 units. At the same time, many attractive projects resulted in new living environments. In 1997 the first milieu protection "Falkplatz" was introduced. In 1999 and 2000 the district added two more areas (Arnimplatz, Humannplatz). Today the district has a total of 9 milieu protection areas. The early modernization/refurbishment, mostly connected with conversion into condos and the large number of new buildings resulted in a very active market despite the sharp restrictions of the district. 

Population by nationality

Migration

While Prenzlauer Berg shows a negative balance following the current trend within Berlin, the district gains population from international and national migrations. In suburban terms, there are slight tendencies to drift away. Thus a reversal of the currents has taken place, which until the turn of the millennium were mainly fed from inland trains. The international influxes to Prenzlauer Berg are dominated by the USA and Western European countries. The national influxes are led by North Rhine-Westphalia, Brandenburg, Bavaria, followed by Baden-Württemberg. In suburban relations, the district loses residents to the districts of Oberhavel, Barnim and Potsdam. The balance is also negative in internal relations. Prenzlauer Berg has lost to the other districts of Berlin in the course of 5 years. Friedrichshain, Mitte, Pankow and Wedding are the main targets.

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

This report was last updated on 27.06.2022 .

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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