Posted at 07.09.2020 | | in News
DO YOU WANT TO BUY OR RENT A PROPERTY?
Take a look at the current price developments in 2020 here!
The price maps for 2020 from Black Label Properties are out. We have been creating these maps for Berlin since 2017 and now for Leipzig since 2020.
Our team gave a lot of thought to the price maps of the two metropolises and finally determined the market prices for existing apartments for 2020 based on our local market knowledge and various software tools. The maps are valid for rented apartments as well as for the purchase prices of condominiums.
Berlin / Purchase Price Development
- Market prices are generally increasing, specifically they are increasing slightly in central neighborhoods and increasing rapidly in the surrounding area. Example: Tiergarten (7,000 EUR / sqm), Rüdesheimer Platz (4,816 EUR / sqm), Kochstrasse (7,609 EUR / sqm), Oranienburger Tor (7,875 EUR / sqm), Herrmannplatz (5,560 EUR / sqm).
- Boom in the suburbs: the upward trend, especially in east Berlin, continues. Altglienicke (4,939 EUR / sqm), Königswusterhausen (3,219 EUR / sqm), Erkner (3,630 EUR / sqm), Neuenhagen (3,412 EUR / sqm), Blankenburg (4,218 EUR / sqm).
- In the metropolitan area of Berlin there is hardly anything to buy for less than 3000 EUR / sqm. Of all the train stations in our “Pricemap”, only 21 (mostly in Brandenburg) are under 3,000 EUR.
- Rented apartments compared to vacant apartments: The purchase price difference continues to increase. Rented apartments cost around 30-40 percent less than renovated and vacant apartments.
- Overall, the offers are still stable, but the quantity of demand is falling. There are fewer transactions overall than in 2019. In 2020, more Berliners and Germans will buy real estate, and purchase requests from foreigners have declined. A trend is emerging that more tenants want to buy their own apartment.
Berlin / Rental Price Development
- The market rents are completely decoupled from the rent cap. Virtually no one rents according to the rent cap. The difference between real rent and capped rent is increasing rapidly.
- Boom in the suburbs: new contract rents in Brandenburg are increasing enormously: Example: Teltow (EUR 9.08 / sqm), Altglienicke (EUR 9.23 / sqm), Erkner (EUR 9.24 / sqm), Oranienburg (EUR 9.21 / sqm) and Bernau (9.03 EUR / sqm).
- If you want to rent an apartment in a popular neighborhood, you will pay comparable rents as in 2019. Example: Rosa-Luxemburg-Platz (EUR 14.24 / sqm), Nollendorfplatz (EUR 13.05 / sqm), Schönleinstrasse (EUR 14.60 / sqm), Savignyplatz (14.84 EUR / sqm).
- The total supply of rental apartments is lower than last year. Due to COVID 19, demand has decreased slightly, albeit at a very high level. We’re talking about 20 tenants per apartment in 2020 – in 2019 it was 25 tenants per apartment.
Leipzig / Purchase Price Development
- Purchase prices in Leipzig are rising considerably faster than rents. The reason: More and more people from Leipzig or those who want to move to the city are choosing to buy real estate instead of rent.
- The most expensive stations in Leipzig are Hauptbahnhof and the west side of Hauptbahnhof with just under EUR 5,000 per meter (EUR 4,791 / sqm). Purchase prices have risen enormously, especially around the center of Leipzig. Example: Roßplatz (4,247 EUR / sqm), Wintergartenstrasse (4,228 EUR / sqm), Westplatz (4,071 EUR / sqm), Feuerbachstr. (3,933 EUR / sqm), Kurt-Eisner Str. (4,178 EUR / sqm).
- We observe a lot of new construction projects, and due to a lack of land, many property developers are settling for B-locations. Their main target group are families with one or two children.
- Investments are particularly worthwhile on the outskirts of Leipzig, as the difference between the purchase price (often around EUR 2,500-3,000 / sqm) and rents (around EUR 6-7 / sqm) is good.
- Overall, there is a significant increase in the demand for high-quality condominiums, particularly popular: Wilhelminian-style houses with classic old-style charm.
Leipzig / Rental Price Development
- There are hardly any apartments for rent below 6 EUR / sqm in Leipzig and the surrounding area. A total of only 13 stations, the more distant stops west of Leipzig, are below this value.
- Rents are continuing to rise in sought-after Leipzig locations. Expect 10-11 € net cold. Example: Gottschedstr. (11.07 EUR / sqm), Bayr. Train station (EUR 10.38 / sqm), Connewitzer Kreuz (EUR 11.62 / sqm), Waldplatz (EUR 10.98 / sqm).
- Despite the increase in the supply of rental apartments in Leipzig, the vacancy rate is falling every year. In 2020 we are below 3.5 percent. That means Leipzig is growing and the city is benefiting from the immigration of new tenants.
- The trend towards temporary furnished apartments is far lower in Leipzig than in Berlin, as there is no rent cap there and the regulations intervene less harshly on the property rights of landlords.
- The demand for rental apartments in former B-locations such as Kleinzschocher in the southwest or Leutzsch in the old west is particularly increasing.