Real Estate Market Berlin: Agency by 40 percent in the first quarter of 2023
Real Estate Market Berlin: Agency by 40 percent in the first quarter of 2023
The real estate market in Berlin broke down by about 40 percent in the first quarter of 2023, as can be seen from an analysis of the expert committee for property values in Berlin. Only newly built condominiums could grow. The current real estate market report 2022/2023 provides comprehensive information about what is happening on the Berlin real estate market.
The data for analysis is based on the information of all real estate sales notarized in Berlin. The expert committee notes that the market is significantly influenced due to current geopolitical and economic framework.
As early as mid-2022, the real estate market collapsed due to increased construction and financing costs. Further results from the report show that in 2022 there was a significant decline in money turnover by 27 percent to 17.5 billion euros. The number of purchase cases also fell by 21 percent to 21,708.
In 2022, fewer one- and two-family houses were also bought. There were a total of 2,416 houses, which corresponds to a decline of 11 percent. The average purchase price was 4,660 euros per square meter of floor space and increased by 7 percent. In the Grunewald district, the highest price level was reached with an average of 12,153 euros per square meter of floor space.
In the case of condominiums, the average purchase price rose to 5,646 euros per square meter of living space in 2022, which corresponds to an increase of 5 percent. In the case of condominiums in the new building, the average purchase price was 7,937 euros per square meter of living space, which corresponds to an increase of 9 percent.
Interestingly, there was a significant decline in the conversion of rental into condominiums by 40 percent to 17,123 apartments.The current real estate market report Berlin 2022/2023 can be downloaded free of charge from the website www.berlin.de/gutachter committee.