Residential City Profile
The capital city is famous for its a and open-minded atmosphere. With growing residential numbers every year, it can be tough to navigate the housing market and find the best property and mortgage for your specific situation in Berlin. With various banks and financing opportunities at hand, having a mortgage broker in Berlin who knows the city by it's heart and all it's players is a huge advantage in making sure you get the property, and mortgage that suits you best. Because of it's popularity, the Berlin real estate market is no easy feat. That's why data driven decisions from sound experts are the key for a successful and lucrative investment.
Consider the location factors of the property. In order to guarantee a long-term value development of a property it is necessary to understand the already known data of the location. We provide you with this important data at the level of each district of the city and update it every month. Based on our experiences in Berlin mortgages and the information at hand, we will make sure to not only find you a good long-term investment, but also a perfect property to build your personal future on.
In which way can this data influence your investment decision?
Get a more detailed overview of Berlin. Rather than just looking at city, go that bit deeper. Look at the different districts, look at the property prices and how they have been impacted by changes i.e gentrification that has taken place in the last years. This could be a good indication of the impact on the prices for the future. Good and thourough information can make a world of a difference.
A good indication of how realistic the property prices in berlin are, can be gauged on how long properties stay on the market before being sold. When properties are slow to sell , this could indicate room for negotiation! When properties are moving quickly, then you have to move quickly too! Adapt to the situation at hand and you will find greater success in your endeavors.
Macroeconomic data can also provide some valuable information, particularly when you are looking at it from a ‘supply /demand’ perspective. Comparing the number of households in the district and the number of housing units available, is a good indicator how the property prices could develop. When the demand is higher than the number of properties available on the market, prices will rise.
The age of the inhabitants in a district will certainly have an effect on the property prices. Districts with a younger age group, those finishing their studies starting new jobs, starting families etc create a demand for cafes , restaurants, entertainment outlets, kindergartens, organic markets etc enabling new businesses for flourish. This in itself creates a further demand as more people want to be part of this and so, is then reflected in the property prices. Back to the supply/demand. Look out for indicators of higher pircing and know how to evaluate their worth for your specific situation.
When a district has a healthy employment rate, therefore a stronger purchasing power, this will undoubtable have a more positive effect on the future potential for property and neighborhood.
The average net income in a district to some degree can be related with the employment status, but of course, a lower net income district with a high employment rate with young residents could also become a future area for development. Sometime we also have to take a longer term view.
By considering the number of people per household in a district, this will help determine which district best match with your requirements and investment strategy. Buying a 3 room apartment for a family could also work well for student sharing accommodation, if there is a high student presence in that district and the demand is there. Sometimes the lesser obvious factors are the difference makers. Be the one to look out for them!
Since 2014, we have had the pleasure of assisting JLL clients and advisors in finding the best possible financing for their investment projects in Germany.
Although the number of completions in 2018 (14,500 new apartments) was once again significantly higher than in the previous year, it continued to fall short of the target of 20,000 new apartments per annum. No noticeable relief to the tension in the market is likely over the coming years.
While the number of building permits granted in 2018 (around 21,000) shows a slight decline compared to previous years, the increasing regulations and drastic interventions of municipal housing policies, such as the introduction of the rental cap and discussions about the expropriation of large portfolio holders, is causing increasing uneasiness among investors and project developers. This, combined with bureaucratic obstacles, the increasing scarcity of development land and the shortage of personnel in the construction industry, is already encouraging many project developers to shift their focus to the less regulated market for commercial real estate.
Considering the substantial excess demand for housing, large, contiguous new residential buildings would bring significant relief, for example through the targeted development of sites in peripheral districts with the involvement of the local communities and the successive expansion of infrastructure. Efficiency in the redensification of potential space in the city centre could also be improved by compiling a city-wide construction site register. Even the number of conversions of commercial space to residential use remains well below 1990 levels.
Berlin observed a rise in asking rents of 4.7% between the first half of 2018 and corresponding period in 2019, to reach €12.20/sqm/month. Although rental price growth has weakened considerably compared to the previous year, the highest annual rental price growth among the Big 8 was observed in Germany’s capital.
Contrary to the trend observed in other major cities, prices in the prime segment (€19.30/sqm/month) also rose sharply by around 7% year-on-year, while in the lowest rental price category the price increase (5.6%) was somewhat lower, and even stagnated in the new-build segment (€14.50/sqm/month). Due to the persistently high demand pressure, apartments in the <45 sqm size category were able to record strong price increases (up 12.5% to €14.90/sqm/month).
An analysis of the submarkets reveals major variations in the development of rental prices. Declines can be observed in the city fringes of Mitte and Charlottenburg, and in Neukölln, while the highest rises can be found in Tegel and on the southern periphery of the city on its boundary with Schönefeld.
Berlin’s population continues to grow extremely dynamically. After Frankfurt and Leipzig, Berlin experienced the highest population growth of the Big 8 between 2014 and 2018 (5.2%), driven by a high level of international inward migration. The city’s attractiveness can be attributed not only to its internationality, but also to a dynamically developing labour market. Because of Berlin’s fast growth, the city is not only extremely suitable for living purposes, but also as an investment opportunity. With demand exceeding supply year after year, further increases in property prices are to be expected. No matter if for living or investing, we’re here to help you analysing the housing market and to get your Mortgage in Berlin.
We have developed a mortgage calculator, that shows you the best terms and conditions to suit both, your financing requirements and personal situation in just a few minutes. Unlike most other mortgage providers for the German market, we request no personal data, enabling you to remain private and with anonymity. Please go ahead and start the process of your property financing for Berlin.
Our service is free of charge for you. As it is common that German mortgage brokers are getting paid by the banks.
For more than 25 years we have been helping clients from all over the world to implement their real estate financing in Germany, and acquire the property they always wanted. We put our market knowledge and connections to big players like the banks and other financing opportunities at your disposal and guarantee a smooth process of your financing from the first contact to the disbursement of the loan - so you can concentrate on the anticipation of your new property.
Peter loves real estate and knows the Berlin property market and its players. He makes the concerns of his clients his own. Even after more than 25 years as a mortgage broker, nothing pleases him more than receiving a client's message about moving into his new home or his joy about a successful investment in Berlin.
For Andreas, advising on financing means, taking his clients smoothly and safely through the bank’s shark pools - to the best possible result. Never think: “Impossible”. He always says openly and honestly: “That’s how it works, that’s how it doesn’t work”. To be honest, binding and fast. For him, financing goes like this.
Even if you have not found a property yet, we would be pleased if you want to get in touch with us. We can answer all your questions about real estate financing in person at our office, by email or video consultation and provide you with exemplary calculations for a hypothetical purchase. Our service is completely free of charge for you.