28 Feb Berlin Rents Continue to Rise
Black Label’s 2018 Rental Map shows the average costs near every subway station in Berlin.
London, 23. February 2018
The → CBRE Berlin Hyp Housing Market Berlin 2018 report shows that property rental and purchase prices in Berlin have risen dramatically over the past year, and that most Berliners, on an average salary, cannot now afford to live within the S-Bahn belt (inner city ring). Black Label Properties’ → Rental Map 2018 is a useful starting point for those looking to invest or rent in the capital city.
Every year we map rents* in the residential areas surrounding the underground and S-Bahn stations to identify trends for those looking to purchase or rent. Our latest survey supports the findings of a new housing market report by CBRE and Berlin Hyp, which shows that instead of stagnating at a high level as was predicted, rents in Berlin have risen faster in the past 12 months than in 2016.
A comparison with 2016 shows that apartment rents in the S-Bahn belt have risen on average by 1-2 euros per square metre. S-Bahn junctions such as Jungfernheide and Greifswalder Strasse have even risen between 3-4 euros. Within the S-Bahn belt, rents are no longer below 11 euros per square metre with an average rent of 10 euros per square metre.
“The gap between rent levels and the actual market price increases from year to year. From the Rental Map, we can clearly see that rents are not falling. As long as there are too few rental apartments in Berlin, nothing will change,” says Achim Amann, CEO of Black Label Properties.
“The Rental Map is a good starting point for people who are looking to buy in Berlin, as it gives an overview of the real estate market. We update it every year to realistically assess rental price developments for our customers.” Use Black Label’s → online rent or buy calculator to work out what property you can afford.
Advice for investors and tenants
Consider your lifestyle choices. Apartments that are subject to the rent index are increasingly difficult to find in the capital. In order to avoid the rent price brake, investors are choosing to buy new builds or renovate older properties so they can command the usual market rents. German investors prefer properties that promise a good return. Investors from China and the US are mainly interested in homes within the S-Bahn ring – the location and condition of the apartment must be right. They assume that, despite the lower yield, rents will continue to increase due to the central location.
“I advise tenants looking for an apartment to rethink their options. It is worth paying high rents to live in the inner city areas when you could have a bigger apartment and better quality of life living a little further out, but still within an easy commute of the city centre? There are lots of companies based on the outskirts of the city in places like Adlershof, the science and media centre of Berlin. If you have a bigger space working from home is also an option. For Berliners on an average income, living within the S-Bahn belt is barely affordable these days.”
Notes for editors:
Berliner Morgenpost, → No end in sight – rents in Berlin continue to rise
Berliner Morgenpost, → Berlin has to do more for affordable rents
→ CBRE Berlin Hyp Housing Market Berlin 2018 evaluated 85,000 rental housing properties in the city and shows that asking rents rose by 8.8% in 2017 compared to 2016.
About Black Label Properties
With over 25 years’ experience in the real estate industry, Black Label Properties specialises in helping international clients to find a home in Berlin. We offer a full-service package and support which includes financial advice, tax/legal, visas, relocation services and business mentoring. Visit www.askachim.com or https://blacklabel-properties.com/ for more information.
*Results are based on our own surveys and findings from Immobilienscout24 marketplace.
Press contact: Nicci Talbot, → email@example.com / +44 7758 621106