Posted at 17.09.2019 | | in Market news, News
Berlin Property Rental Market Update: It is like the Hunger Games!
In an update on the Berlin rental property market from Black Label Properties → Letting and Management consultant Yannis Tzakris, demand continues to be extremely high and supply extremely limited.
Our → Letting and Management Team now have around 450 properties under management with just two or three new properties becoming available every week – mainly vacant new build apartments that are being rented for the first time. They can receive between 50-60 enquiries about a property within an hour of it going on-line, especially if it is in one of the most desirable areas for international renters, such as Mitte, Kreuzberg, → Neukolln or Prenzlauer Berg.
Yiannis Tzakris of Black Label’s Letting and Management team talking about the current state of the property rental market in Berlin and what future developments may impact on its development.
→ Watch the video on YouTube
When asked what advice he would give to tenants looking to rent an apartment in Berlin, Yannis commented “Berlin is like the Hunger Games! The first person to apply for an apartment has the most chance of getting it. Last year we held viewings with many people coming but the next day very few applied and so lost out. If you see an apartment you like, apply for it!”
He continued: “Although there are new projects being build and more in the pipeline, it is nothing like enough to meet the demand of people coming to Berlin looking for a permanent place to live or for those already here. I do not think this situation will change any time soon.”
Speculation is rife about the effect the recently announced “Rent Freeze” will have on the market, and there are some indications that property owners are looking to → sell their investment properties rather than continue renting them with so many → restrictions in the market. Potentially this could lead to even fewer properties becoming available.
However, as so many of the properties that are becoming available are new builds – and so not covered by the existing rent cap regulations – average rents are continuing to rise, although not at the rate of recent years as issues of affordability kick in. The recent announcement of → tax allowances for employers providing affordable housing for their employees may ease this, but will take some time to come through.
Developers are also finding it increasingly difficult to secure new sites that will allow them to build affordably priced apartments, and so are already shifting their focus to areas further away from the center – such as Pankow and Karlshorst in the east or out towards Spandau and Elstal in the west – meaning that prospective tenants may have to search in new areas they are not so familiar with to find more affordable apartments.
Yannis concluded “Berlin is still → catching up with other major European cities in terms of prices but it is still a long way behind in terms of housing supply and quality. Hopefully over the next five years the city will focus on closing that gap.”
For further information about our Letting and Management service,
please → email Yannis or call him on +49 157 8066 9188.