Berlin Residential Market Report 2012

GSW / CBRE have published their 2012 Annual Housing Market Report for Berlin. Main conclusions •    Rents: Expensive rents get more expensive and moderate rents remain affordable. •    Rent Burden: The average share of spendable income to be assigned to rent dropped slightly from 24.4% in 2009 to 24.2%. •    Comparison: The Berlin Residential market still offers more for less than other German cities. •    Scoring: Pankow,Guest Posting Friedrichhain-Kreuzberg and Treptow-Köpenick are in high demand with investors and in advanced positions on the investment cycle. •    New building activities mainly in popular locations for high value customers. For new contracts average net rents have risen by 7.8% from € 6.11 in 2010 to € 6.59 in 2011. The increase has varied and mostly took place in the higher value market segments to € 12.04 on average. Least affected were the lower rents which increased by 4.6% to € 4.50 per sqm per month. There is still sufficient supply of affordeable apartments with a tightening of the market within the inner S-Bahn ring line. In more detail: Friedrichshain-Kreuzberg is in the lead A change in the lead of the table, in terms of average rents a new distict in in No.1 position: at EUR 8.02 per square meter, Friedrichshain-Kreuzberg is just ahead of Charlottenburg-Wilmersdorf with at EUR 8.00. This picture is turned around in the lower market segment with the most affordable ten percent of properties,  where Charlottenburg-Wilmersdorf (EUR 5.65) is slightly higher than Friedrichshain-Kreuzberg (EUR 5.49). Diverse development in Mitte district In absolute terms, the highest asking rents in 2011 were found in Mitte district. The new district of Mitte (it was consolidated from the former districts of Mitte, Wedding and Tiergarten on 1.January 2001) was also the district with the largest price gap between the most expensive and the simplest of apartments. The district has a diverse social and geographical structure. In the historical Mitte neighborhood and around Potsdamer Platz, asking rents in the upper market segment range from EUR 17 to EUR 18 – the highest in the city. Meanwhile, Moabit and Wedding in the north-west of the district have a concentration of apartments in the lowest price segment. High-end segment in Neukölln In the districts of Pankow and Tempelhof-Schöneberg, asking rents are above-average for Berlin as a whole with Neukölln close by. This once stigmatized district now has a high-end segment, with average asking rents of EUR 9.08 for the most expensive ten percent of apartments. Moderate price rises in the east and on the edge of town Lichtenberg, Reinickendorf and Treptow-Köpenick are districts show below-average asking rents at around EUR 6.00 per square meter and slow rental growth. Marzahn-Hellersdorf and Spandau are at the end; both still show significant vacancy rates, although these are being reduced further. For example, apartments in the lower price segment were available in Marzahn-Hellersdorf for an average of EUR 3.63 per square meter per month.  Entrümpelung Berlin