Building prices in Berlin are stagnating: Tenants breathe in the middle class!

Building prices in Berlin are stagnating: Tenants breathe in the middle class!

Berlin, Deutschland - The Berlin housing market currently shows contradictory indicators. According to the housing association Berlin-Mitte (WBM), the upward trend for construction costs for new apartments is broken. Managing Director Steffen Helbig reports that the construction costs are currently stagnating at a high level. However, a return to falling prices is not expected.

The uncertainty about the possible effects of planned special funds for infrastructure, climate and armor remains a worrying factor for the industry. WBM currently rents around 34,000 apartments, primarily in the districts of Mitte and Friedrichshain. In order to cover the need for housing, the WBM is planning to build around 10,000 new apartments over the next ten years.

construction projects and financial perspectives

Currently there are around 1,600 apartments under construction at the WBM, and an additional 1,300 apartments are to be under construction by September 2026, including in the minor and new Jakobstrasse. Last year, the company generated a surplus of 23.7 million euros, which underlines the focus on building new housing as a successful strategy.

Nevertheless, managing director Lars Dormeyer sees various problems on the Berlin housing market. In this way, existing tenants often pay significantly lower rents compared to the current market prices. At the same time, an oversized surface consumption per capita is determined. Another concern is the high costs for single tenants, who often have to pay more for smaller apartments than for larger ones with older rental contracts. In addition, residential rights are only viewed when moving in, but not checked for future permissions.

rising rents and market analyzes

The market situation is also reflected in the current numbers. According to the 2023 housing market report, the median of the offer rent in Berlin is EUR 13.99/m², which corresponds to an increase of EUR 2.45/m² (21.2%) compared to 2022. The lowest offer rents can be found in Marzahn-Hellersdorf and Reinickendorf, where they are at EUR 10.61/m², while the highest rents are recorded in the central districts of Friedrichshain-Kreuzberg (18.33 EUR/m²) and center (18.26 EUR/m²). The housing market is increasingly showing tension that shift from the city center to the outskirts.

In this context, it remains to be seen how the WBM measures and the regulatory changes will affect the housing market and tenants. A clear view of the market will be decisive in the coming months to find suitable solutions for the Berlin tenant.

For more information on the location of the construction costs and the current developments in Berlin, read the article by rbb24.