May 2019

Investors Guide Berlin Steglitz 2019

Solid, cosy and quiet? That was once, maybe. Many Steglitzer are surprised, how fast one gets away from a sleepy front garden image. Steglitz seems to have mastered the tension between exposed inner city locations, its function as an important retail spot and the idyllic flair of its lovely quarters. It has become a modern capital district whose quality is second to none.

Berlin-Steglitz

Everything on the doorstep

Steglitz is located in the southwest of Berlin between the densely populated inner city districts of Wilmersdorf and Schöneberg and the villa and single-family house quarters of the Lichterfelde and Dahlem areas. Until not long ago, the image of the district was bourgeois, cosy and very quiet. Those aren't bad qualities at all. All the better that Steglitz preserves his DNA despite a recently almost breathtaking dynamic. Somehow Steglitz is close to everything. Along the castle street, very nice, small and quiet streets are lined up like a string of pearls. The shopping street is the economic centre, crossed by the subway line 9. The average net household income in many quarters is high in comparison to other districts in Berlin. In addition to many small and medium-sized parks and green areas, Steglitz also enjoys an excellent reputation for good schools.

Existing buildings

Median Asking price
4,160 EUR/m²
+16.60 %
Median Asking rent
10.95 EUR/m²
+4.70 %

New buildings

Median Asking price
5,510 EUR/m²
+6.30 %
Median Asking rent
13.50 EUR/m²
+2.00 %

Markets

In Steglitz, medium to good residential areas predominate. Due to the heterogeneous building and district structure in the district, property prices vary widely. Large apartments in the districts east and west of Schloßstraße achieve top prices. However, apartments from post-war housing construction are in no way sold off, but are usually very valuable due to their location quality. Also 30-year-old flats and the quarters south of the Steglitzer Damm and the Albrechtstraße catch up in price. In Paulsenstrasse, families in terraced or single-family houses appreciate the traffic-calmed environment. The residential quarter in the east of the Steglitz city centre was built at the end of the 19th century as a noble villa and country house colony. The structures of the present reflect the old grandeur and at the same time the destruction of the Second World War. More than 80 percent of the houses in Südende fell victim to the bombs; the premises for the reconstruction and redevelopment of the neighbourhoods were the rapid creation of living space and mostly not aesthetic aspects. Nevertheless, there are many well preserved and carefully renovated buildings in very pleasant locations. In the quarters along Grunewaldstrasse, Holsteinische Strasse and Hubertusstrasse you will find showpiece houses from the early Wilhelminian (Gründerzeit) period.

Buy

In Steglitz, the property market is segmented according to local submarkets. In the core area Steglitz the average prices per square metre are currently 4,170 EUR/m². The price correction to the prior-year period amounts to 16.60 %. In the 12-month period we have registered 1,450 offers in inventory.

In the new building segment an average list price of 6,050 EUR/m² is currently asked for. Viewed over the neighbourhoods the offer prices for existing flats are around 3,320 EUR/m² in Lankwitz and around 4,430 EUR/m² in Lichterfelde. 

Price index Steglitz

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 4,160 EUR/m² - 5,510 EUR/m² -
1 Year 3,570 EUR/m² 16.60 % 5,180 EUR/m² 6.30 %
3 Years 2,550 EUR/m² 63.30 % 4,280 EUR/m² 28.70 %
5 Years 2,190 EUR/m² 90.00 % 3,800 EUR/m² 45.00 %
10 Years 1,400 EUR/m² 197.40 % 2,510 EUR/m² 119.30 %

Snapshot

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

Price segments

In Steglitz, very strong mid-range price segments predominate in the existing stock segment. As in all central inner city districts, the lower price segment has virtually disappeared. In the segment above 6,000 EUR/m² the supply is not very pronounced.

Family houses

Steglitz offers a wide range of family house typologies in the suburbs of Lankwitz and Lichterfelde. These include detached single-family houses, terraced houses, semi-detached houses and some town villas. The offer is traditionally largest in Lichterfelde. In the 12-month period approx. 310 houses were offered, at an average price of approx. 5,340 EUR/m². In Lankwitz the average offer price is about 4,500 EUR/m². Higher prices are achieved for city villas.

Rent

In all districts of Steglitz together, in the past 12 months about 3,980 were offered for new letting. Currently there is a demand for 10.95 EUR/m². In the new building the offered rents are at approx. 13.50 EUR/m². This corresponds to a price development of 2.00 % compared to the previous year.

Rent index Steglitz

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 10.95 EUR/m² - 13.50 EUR/m² -
1 Year 10.50 EUR/m² 4.70 % 13.25 EUR/m² 2.00 %
3 Years 9.00 EUR/m² 21.90 % 11.00 EUR/m² 22.90 %
5 Years 8.40 EUR/m² 30.70 % 8.60 EUR/m² 57.00 %

Snapshot

The bubble chart shows the supply situation of the past 12 months on the real estate market in Steglitz. 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. In Steglitz we see very much post-war architecture, few old and new buildings.

Rent segments

Overall, the rental offer in Steglitz can be termed stable. As in the market for condominiums, the medium rental price segments predominate the market.

Apartment buildings

In Steglitz there are currently no milieu protection areas (see below). The expectation of the introduction of preservation statutes is currently leading to tension on the market for apartment buildings in Steglitz. Accordingly the average square meter prices indicated in the real estate price service of the IVD are usually excelled. Please contact us for an individual assessment of the market and environment situation of your apartment building in Steglitz. 

Construction era Simple to medium locations Medium to good locations
1900 - 1949 1,700 - 2,200 EUR/m² 2,300 - 3,300 EUR/m²
1950 - 1978 1,600 - 2,000 EUR/m² 1,900 - 2,600 EUR/m²
1979 - 2000 1,700 - 2,100 EUR/m² 2,000 - 3,000 EUR/m²
since 2001 1,900 - 2,500 EUR/m² 2,500 - 3,500 EUR/m²
Source: IVD Immobilienpreisservice 2018/2019

Milieuschutzgebiete

In Steglitz (analog Zehlendorf) gibt es aktuell keine Milieuschutzgebiete. Gleichwohl gibt es Bestrebungen seitens einzelner Bewohner, Milieuschutzgebiete auszuweisen. In der BVV (Bezirksverordnetenversammlung) von Steglitz wird das Thema hinsichtlich der Kostentragung kontrovers diskutiert. Streitpunkt ist, wer die Kosten für das Screening tragen soll, Bezirk oder Senat. Die Senatsverwaltung für Stadtentwicklung hat Ende 2018 die grundsätzliche Bereitschaft signalisiert, die Kosten für ein Gesamt-Screening des Bezirkes zu tragen. Aktuell wird geplant, den Untersuchungsbereich des Screenings über alle 41 Planungsräume zu legen. Ziel des Screenings ist es, Beobachtungsgebiete zu identifiziern, für die wiederum ein Monitoring beauftragt werden soll. Für gegebenenfalls identifizierte Verdachtsgebiete sollen vertiefende Untersuchungen beauftragt werden. Auch wenn erst nach letzterem Schritt Entscheidungen über die Festlegung von Milieuschutzgebieten erfolgen können, sollten Eigentümer erwägen, ihre Liegenschaften bereits jetzt zu teilen. Wir informieren regelmäßig über den Fortgang. Fordern Sie unseren Leitfaden zum Thema Milieuschutz an. Wir beraten Sie gern.

Please see the GUTHMANN milieu protection map for details.

General background

The investment climate in Steglitz is not only very good with regard to its position as one of the most important consumer destinations in Berlin. With Berlin's growth and the associated housing shortage, distances between Berlin districts are becoming less important. This means that the peripheral locations in Steglitz are also becoming considerably more important. Decentralized housing is no longer seen as a weak point; it is becoming the norm, as it is already in most international metropolises. A good example of the change in perception is the former Steglitzer Kreisel, which will trigger new developments in the surrounding area in the course of the conversion to "ÜBerlin". At the same time, however, it must also be seen that the large number of flats brought onto the market at the same time can also have a dampening effect on the local market. Politically, controversial debates were held in the BVV (District Parliament) regarding the assessment for the introduction of milieu protection areas in Steglitz. The core of the debate was who would have to pay for the costs of the studies and not whether an introduction should take place or not. In most of the Steglitz quarters, currently no high pressure can be measured (see above), which would make the introduction of preservation statutes questionable. Major projects such as "ÜBerlin" will help to reducing the pressure on the housing market.

Migration

Steglitz has grown. Below we show the top values of the inflows and outflows for Steglitz and for a selected hotspot. For your real estate engagement in Berlin, we are able to map the exact position of migration flows within the framework of our analyses.

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

Trend

It is not easy to say why Steglitz was treated with distrust by investors for a long time. One possible explanation could be the high proportion of older residents in many neighbourhoods. Steglitz will become increasingly important in the inner-city context. The district offers all the prerequisites for outstanding, long-term investment strategies. The net household incomes are above average and there are attractive locations in all parts of the district. Despite or because of the significant war damage, there are a variety of properties of very different typologies. Future generational changes could also be included in investment considerations. The good inner- and extra-urban connections, the proximity to universities and the Charité Klinik Benjamin-Franklin as well as the attractiveness of one of the largest shopping streets in the capital contribute significantly to the development in Steglitz. With regard to population development, the district also has a high proportion of immigrants from the USA and classic Western European countries. Internally, the overall balance of interrelations with other districts is fairly balanced. We think Steglitz is an absolute tip.

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.