Residential Rent Development in Berlin 2009

The Berlin Rent Table 2009 was published this week (see also yesterday's blog entry). The average increase of the net rent was 4 ct per sqm per month annually for the last two years since the last rent table, that is 1.7 % for the 2-year-period. In the same timespan the utility cost and heating (Betriebskosten und Heizkosten) increased on average by 5% to 2.35 Euro per sqm per month. Basically the increase in those ancillary costs is taking away the option for higher rent increases. Here should be an angle for optimising the performance of properties through Property Performance Improvement.

A more detailed analysis of the rent development in different market segments shows an interesting difference in the development of the net rent: The increase in rents for small apartments < 40 sqm over the 2-year-period was 5.3% to 5,41 Euro due to increased demand in that period. These apartments were especially popular with "New-Berliners".
For apartments between 60 to 90 sqm the increase was below average at 0.9 % for two years. This segment is still very low at 4.71 Euro per sqm compared with Hamburg at 6.53 or Munich at 9.90 Euro. Some segments have seen above average modernisation activities and thus above average rent increases. This applies to buildings from 1919 to 1949, 1950-1955 and 1973 to 1983 (the latter for ex West-Berlin). Here the increases were between 3.8 and 3.9 %.

The variation in the different market segments shows that a good asset strategy will yield better returns, even in times of slower rent increases. For support of the development of a successful property or portfolio strategy contact Berlin Portfolio Ltd.

Berlin Rent Table 2009 "Mietspiegel" published

During the past two years, average rents in Berlin have risen each year by only 4 cents/sqm/month. For an apartment without rent control, the average monthly rent in Berlin is now €4.83/sqm without heating and utilities. Very small apartments of less than 40 sqm had an above-average rent development of 5.3% to €5.41/sqm per month. These conclusions were drawn from the new, qualified rent index for 2009 which has been accepted by all six lessor and tenant associations for the first time since the year 2000. Apartments in houses built between 1973 and 1983 in western districts and new buildings constructed since 1991 are also above the average. Rents in the latter buildings rose by 1.5%, from an average of €6.58 to €6.68 per month. For the first time, the rent index also takes the energy efficiency of buildings into account.

Here is a link to the download from the official Berlin Senate website.

For Property Performance Improvement follow this link.

Marketing starts for two luxury residences in Berlin

Cologne-based Vivacon AG has launched the marketing of two large-scale projects in Berlin that have a total volume of €172mn.
Under the name “yoo Berlin,” 100 designer apartments from the board of Philippe Starck are to be developed on the bank of the River Spree for approximately €77mn. A single, ten-story building with a total of 13,200 sqm of living space and a futuristic glass façade is projected. Commencement of construction is scheduled for September and completion for the end of 2010.

Marketing has also started for the €95mn project called “Luisenstadt”. According to architect Annette Axthelm’s plans, some 310 luxury apartments and town houses with a total of 26,000 sqm of living space are to be developed on an area measuring some 12,000 sqm between the Spree and Köllnischer Park. The core of the project is the revitalization of the landmarked former AOK insurance headquarters called “Haus Luise”.

For more information on luxury apartments and townhouses please go to www.city-of-berlin.info/services.htm and indicate Haus Luise as your interest.

Rented 100 sqm Office Unit in Berlin for Sale 170,700 Euro

Investment in Commercial Property in Berlin-Steglitz: 100 sqm office unit, new 5-year-contract with long term tenant, 11,200 € net rent p.a.
Ground floor in a turn of the century (1900) mixed commercial / residential building. The unit is accessible directly from the street. The building is well maintained and managed. A parking space is included.

Details available here: Commercial Properties

An excellent opportunity as finally Berlin has assumed its special situation as the capital of Europe's biggest economy. According to Aengevelt in contrast to other regions in Berlin demand for office space has grown. Also see: Berlin Office Market Shows Resilience in this Blog.

Berlin Office Market Shows Resilience

Berlin Office Market shows strong resilience in current slow down. It seems that finally Berlin has assumed its special situation as the capital of Europe's biggest economy. According to Aengevelt in contrast to other regions in Berlin demand for office space has grown.


The German Property Market has established and reinforced its position as a secure investment destination with Berlin at the top of the list for future value in commercial properties as well as residential properties. In the wake of the increased demand rent has gone up in the top segment by 5% from 21 €/sqm/month to 22 €. In the middle segment increases were ca. 6.5% from 15.50 to 16.50.

Berlin Investment Apartment 40,246.80, net yield 6.55%

Investment Apartment in Berlin

Gallwitzallee 73c, 12249 Berlin-Steglitz (Lankwitz) near Gemeindepark. 1958 apartment block, modernised 2000-2005. 1 room, 30,49 m² with west balcony. Monthly net rent 219.53, owner's cost per month 37.87 €.

Net rent 2,634,36 € p.a.
Price: 40,246.80 € (6.55% yield)
Commission: 0,00 €

Berlin-Steglitz
This district has a large proportion of high quality property in the housing segment of the Berlin property market as well as business property and one of the biggest shopping high streets at "Schloßstrasse". Its green but well accessible location and middle-class population has made it a preferred region and has provided a stable development since the time of the divided city.

It will benefit from the development of the new Berlin Brandenburg International Airport at its southern border to be opened in 2011.
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Bi-lingual (German/English) financing support is provided. To order more information and exposé click here: Investment Apartments in Berlin-Steglitz
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Berlin Investment Apartment 64,139 Euro, 6.36% yield

Investment Apartment

Binger Str.68, 14197 Berlin-Wilmersdorf

The apartment is on a well maintained apartment block in a preferred location in the district of Wilmersdorf. During the division of the city Wilmersdorf has developed into the noble district of West Berlin with the Villa Quarter Grunewald and the residencies in Dahlem. The location of the property is 1.5 km from the Kudamm (Kurfuerstendamm) with its upcoming renaissance through major international investments. Public transport is within walking distance and the city center is accessible within 10 minutes.

Net rent 4,081,56 € p.a.
Price: 64,138.80 € (6.36% yield)
Commission: 0,00 €

Berlin-Wilmersdorf

This district has a large proportion of high quality property in the housing segment of the Berlin property market as well as business property. Its central location and middle-class population has made it a preferred region and has provided a stable development since the time of the divided city. Relatively low yields can be expected here as investors looking at these locations know that in the mid to long term perspective this will be more than recovered by the value increase.
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Bi-lingual (German/English) financing support is provided. To order more information and exposé: click here
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