Rental prices in Berlin remain stable, but housing management suffers from rising costs

Rental prices in Berlin remain stable, but housing management suffers from rising costs
The rents in Berlin remained largely stable last year, according to the Berlin-Brandenburg-based housing company (BBU). The average inventory rents amount to 6.54 euros per square meter per month (net cold) and are therefore only two percent above the previous year's value of 6.41 euros. This is a gratifying development for the tenants, says association director Maren Kern.
However, this Situation is an increasing economic challenge for companies. If the income stagnates, but the costs are increasing, this will become a serious problem in the long run, explains Kern. The Berlin housing industry suffers from cost increases, delivery difficulties, lengthy building permit procedures and stagnating income. This reduces the investment strength of the companies. In 2022, the BBU member companies invested around 2.6 billion euros, compared to 2.89 billion euros in the previous year. In addition, the high price increases on the construction would have led to the more expensive materials and services. The investment sum was fell for the first time in 16 years.
The BBU member companies require politics, among other things, reliability in housing policy decisions, the expansion of digital infrastructure and the acceleration and simplification of building permit procedures. A survey showed that these were the most important concerns of the companies.
The BBU consists of a total of 342 member companies, of which 131 are located in Berlin. The approximately 770,000 apartments of these member companies make up about 45 percent of the Berlin rental apartment.
In 2022, the BBU member companies completed a record of 7,172 new apartments in Berlin. A similar number of new apartments are expected for the current year. However, these are projects that were started several years ago. For 2024, a decline of 27 percent is forecast in the case of completions. The Berlin Senate aims to build 20,000 new apartments in the capital annually.
Overall, there is a mixed location on the Berlin housing market: While rents have remained largely stable, companies face increasing economic challenges. Politicians are required to find solutions to strengthen the investment power of companies and to promote housing in the capital.