July 2019

Investors Guide Berlin Zehlendorf 2019

Zehlendorf is a classic among the noble addresses in Berlin. For the residents, culture, nature, urbanity and a high quality of life are in the foreground. The mixture of sophisticated country houses by renowned architects, villa districts, multi-storey residential buildings from all eras and cooperative housing estates ensures that the district is not just a luxury location. With the Freie Universität Berlin based in Dahlem, Zehlendorf is also Berlin's largest academic forge.

Berlin-Zehlendorf

Noble, noble

Zehlendorf comprises the districts of Dahlem, Nikolassee/Schlachtensee, Wannsee and the neighborhood of Zehlendorf itself, that gives the village its name. Here it lives green, quiet and noble. About 50 percent of the district comprises forest and water areas. Havel, Kleiner and Großer Wannsee, Schlachtensee and Krumme Lanke are popular destinations for many Berliners and tourists. Zehlendorf is known for its family friendliness and high quality of life. Properties in Zehlendorf are among the most sought-after, most expensive and most exclusive properties away from the centre of Berlin. Europe's largest villa quarter is located in the northwest of the district and stretches from Grunewald to Potsdam-Babelsberg.

Existing buildings

Median Asking price
5,300 EUR/m²
+19.40 %
Median Asking rent
12.15 EUR/m²
+8.70 %

New buildings

Median Asking price
7,200 EUR/m²
+3.40 %
Median Asking rent
18.60 EUR/m²
+10.90 %

Markets

The district has a classic character and combines culture, nature and urbanity. Some Wannsee properties from the imperial era are now in public use, including the Liebermann Villa. Zehlendorf is an attractive place to live for families, the school facilities are excellent. Today, households in Nikolassee and Schlachtensee are predominantly high-income. Wannsee is a western part of Zehlendorf surrounded by greenery and water. The recreational areas between Havel and Wannsee were an anchor for the Berlin upper middle classes during the imperial era. Also Nikolassee is characterised by magnificent old buildings, multi-family houses, single-family houses and villa quarters. Under the influence of the English garden city movement, one of the first settlements known as "Gartenstadt" was built in Zehlendorf-Mitte between 1913 and 1930. Classicist elements and buildings from the period of architectural expressionism dominate here. 

Buy

The housing supply in Zehlendorf is quantitatively dominated by the 1950-1978 construction class. The purchase price range starts at around 3,700 EUR/m² and is increased by a larger number of large properties in almost all construction year classes starting at 5,000 EUR/m² to an average offer price of currently approx. 5,300 EUR/m². In the last 12 months period about 1,180 existing properties where brought to market. The price development compared to the same period of the previous year is approx. 19.40 %.

In the new building segment the prices are clearly higher with a current average list price 7,200 EUR/m². In the district Dahlem the offer prices for existing real estate are currently highest with 7,070 EUR/m², followed by Nikolassee with 5,560 EUR/m². Wannsee and Zehlendorf are only marginally lower. 

Price index Zehlendorf

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 5,300 EUR/m² - 7,200 EUR/m² -
1 Year 4,440 EUR/m² 19.40 % 6,960 EUR/m² 3.40 %
3 Years 3,620 EUR/m² 46.30 % 5,560 EUR/m² 29.40 %
5 Years 2,890 EUR/m² 83.70 % 5,000 EUR/m² 43.90 %
10 Years 1,750 EUR/m² 203.70 % 3,050 EUR/m² 135.80 %

Snapshot

The Bubble Chart shows the supply situation of the past 12 months on the real estate market in Zehlendorf. 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.

Price segments

The chart shows the changes in the price structure of the Zehlendorf 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 across all apartment types and price segments for existing apartments by calendar year. 

Family houses

The market for one- and two-family houses and villas is very agile. Approximately 640 houses where brought to market over a 12-month period. The average offer prices range with about 6,800 EUR/m² above the prices for apartments. The price development compared to the previous year is 7.50 %. The most valuable objects are offered with about 9,220 EUR/m² in Dahlem.

Rent

Among 1,570 rental offers in stock the average advertised new contract rent is currently about 12.15 EUR/m². In the comparable period of the previous year, the average value was about 11.15 EUR/m². This corresponds to an increase of 8.70 %

In the new building segment in the same period 60 apartments where brought to market, at an average rent of about 18.60 EUR/m². Thus the price correction to the previous year is 10.90 %

Rent index Zehlendorf

Period Existing buildings Median Offer price Index (base 10 years = 100) New buildings Median Offer price Index (base 10 years = 100)
Today 12.15 EUR/m² - 18.60 EUR/m² -
1 Year 11.15 EUR/m² 8.70 % 16.80 EUR/m² 10.90 %
3 Years 10.00 EUR/m² 21.40 % 14.50 EUR/m² 28.10 %
5 Years 9.45 EUR/m² 28.30 % 11.90 EUR/m² 56.40 %

Snapshot

The Bubble Chart shows the supply situation of the past 12 months on the rental market in Zehlendorf. 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.

Rent segments

The chart shows the changes in the rent structure of the district. 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 the districts of Wannsee and Nikolassee, residential buildings with multi-family houses and town villas as well as family houses of other types prevail. Mainly in the district of Zehlendorf and in the southern districts of Dahlem there are very well maintained and valuable multi-family houses with more than 8 residential units. The residential areas range from good to very good. Of around 18,550 buildings, around 2,260 date back to before 1920. In Zehlendorf, residential and commercial buildings from 8 residential units upwards are less strongly differentiated according to year of construction. Only the immediate post-war buildings up to around 1980 are still being sold at prices below 3,000 EUR/m² per square meter. All other construction year classes are set higher. The number of transactions has declined in recent years, but remains at a higher level in view of the local market for apartment buildings. 

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

General background

The ownership rate in Steglitz-Zehlendorf as of 2017 is about 21.5 percent. The size of the household is lowest in Zehlendorf-Süd with an average of 1.74 persons and highest in the Thielallee quarter with 2.55 persons, whereby the population here just slightly exceeds the 5,350 mark. Many students live in this quarter, close to Freie Universität, which increases the pressure on the housing market. Zehlendorf Mitte is the largest quarter with just under 12,500 inhabitants. The calculated housing deficit for the entire Zehlendorf district is around 5,600 units. Currently there are no milieu protection areas in Zehlendorf. In the district assembly (BVV) of Steglitz-Zehlendorf the interests regarding the introduction of milieu protection areas are not uniform. The background is the financing of in-depth preliminary investigations for three areas on the basis of applications submitted by residents.

Migration

International migrations and internal migration make up the majority of migrations. Zehlendorf is still international today due to its university location as well as its historical aspects. The American armed forces left the old district the student village Schlachtensee in Nikolassee and the Roosevelt Barracks. The study is carried out here for the student quarters of Dahlem, Krumme Lanke and Thielallee. 

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

Trend

Zehlendorf is not a classical investor market, except for multi-family houses. The old district in the southwest of Berlin is characterised by its high intrinsic value, understatement and status as the capital's academy hub. The quality of life in Zehlendorf is noticeably high. The housing stock is very well maintained across all year of construction classes. The same applies to roads and green spaces. The schools and kindergartens enjoy a good reputation. There is little sign of typical metropolitan distortions in very few quarters. The combination of university facilities in various disciplines, the proximity to the University Medicine Campus of the Benjamin Franklin Clinic and the good public transport connections make Zehlendorf a dream location for international students and scientific staff. The international influxes are led by the USA, especially in the student quarters. The local real estate market in Zehlendorf is characterised individually and at the same time in demand from international buyers. All in all, it is decoupled from the general developments of the overall market. The analysis of the neighbourhoods with regard to the calculated housing deficit and the consideration of the composition of the migrations indicate that opportunities and potentials can be expected in particular in the new construction submarket for the microapartment segment. 

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This report was last updated on 22.07.2019 .

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.