PL

Germany Berlin residential market report 2024

Residential
According to the Berlin 2024 Residential Market Report by real estate financier Berlin Hyp and real estate service provider CBRE, purchase prices have fallen, while pressure on the rental housing market continues to increase. As a result, rental prices are continuing to rise sharply.

Inflation, rising construction costs and high interest rates dashed many a dream of home ownership in 2023. As a result, purchase prices have fallen, slightly in the case of condominiums and more sharply in the case of apartment buildings. Meanwhile, pressure on the rental housing market continues to increase, and as a result, rental prices are continuing to rise sharply, and there is a sustained trend towards moving to the surrounding area, despite prices also rising there.

Despite the rent freeze, asking rents in Berlin rose by 18,3 pct year-on-year to EUR 13,60 per sqm. While rents in the high-priced segment rose by 8,7 pct to EUR 26,00 per sqm - a slightly weaker increase compared to previous years - the lower-priced segment recorded an increase of 4,9 pct to EUR 6,25 per sqm after a minimal decline in the previous year. The spread between rents in the upper and lower market segments was almost EUR 20 per sqm at the end of 2024.

The drastic decline in the number of unfurnished rental apartments on offer in Berlin is continuing in view of the strong demand for housing and the low fluctuation rate. In addition, small private landlords are increasingly relying on furnished apartments or short-term rentals, partly in order to be able to cover the debt service of the financing. This is resulting in significantly higher rents. The supply of available rental apartments is so limited that, for the first time, there were more offers for owner-occupied apartments than for rental apartments on the Berlin residential market.
Michael Schlatterer, managing director at CBRE in Germany

In 2023, asking prices for condominiums fell slightly across all segments in Berlin for the first time by 1,4 pct to EUR 5.75 per sqm - after many years of sometimes sharp increases. The upper and lower market segments also recorded declines, with the upper segment falling by 2 pct and the lower segment by 5,4 pct. Nevertheless, the upper market segment remained above the EUR 10.00 per sqm mark for the second year in a row. The asking prices for multi-family homes fell by 11,7 pct to EUR 3.17 per sqm in 2023.

Residential construction in Berlin and the surrounding area

A total of around 220 construction projects with around 35,000 apartments are currently in the concrete planning, development or construction phase in Berlin. Only 15,1 pct of these apartments are being built within the S-Bahn ring. Particularly in the outer districts, where the state-owned Berlin housing associations are predominantly active, some of the large-scale rental housing construction projects are continuing.

The proportion of additional apartments within the S-Bahn ring is continuing to fall and major new construction potential appears to be exhausted, meaning that developments are concentrating on areas outside it. This is because demand for housing remains high in the areas surrounding Berlin as well, due to population growth as a result of migration gains, although hardly any privately financed construction projects are being started. Despite this demand, prices for detached and semi-detached houses have fallen almost everywhere in the surrounding municipalities due to the uncertain economic outlook and higher interest rates on financing.
Michael Schlatterer

New construction activity urgently needs to be stimulated again. I therefore very much welcome the current draft for the Berlin Senate's 'Faster Construction Act' and hope that it will come into effect 'quickly'. A standardization of building regulations as well as a relaxation of building regulations and digital interfaces would help housing construction to pick up speed again. It is now high time to act, to simplify and speed up procedures. Energy requirements should also be standardized with a sense of proportion at a good ecological level in order to create calculable framework conditions and take social aspects into account. But I don't just want this for Berlin.
Sascha Klaus, chairman of the Board of Management of Berlin Hyp

Institutional residential real estate transaction market

The portfolio transaction volume on the Berlin institutional transaction market amounted to around EUR 1,8 bln in 2023 – EUR 600 mln less than in the previous year, while the 10-year average was around EUR 5,7 bln. Project developers accounted for less than EUR 200 mln, around EUR 502 mln less than in 2022. The slump in new construction and the resulting lack of supply were clearly noticeable here.

The general wait-and-see attitude, especially among international investors, is still noticeable despite the strong fundamental data in Berlin – with rising rents and falling vacancy rates coupled with too little new Berlin residential construction. The market expects interest rates to fall over the remainder of the year. On this basis and with simplified procedures, more investment decisions can then be made again for the future-oriented capital city of Berlin. There are still differences between buyers and sellers in terms of price levels, but we are slowly seeing a convergence here. In particular, new-build projects in multi- storey residential construction from an ESG perspective would be a sought-after investment product, but there is currently a lack of corresponding offers.
Sascha Klaus

Latest news

Events

Poland The sector keeps moving!

schedule 23 May 2024
Opr./edited by ANZ

Tomorrow, as every year, we will meet at the golf course in Rajszew and at the Warszawianka courts to build relationships, have fun and, at the same time, take care of the condition of... the industry. All this in the spirit of healthy sporting competition.

Material partner

Poland Excellent Fern at Off Piotrkowska

schedule 04 April 2024
Eurobuild CEE

Intensive commercialization of the multifunctional Fern building under construction at Off Piotrkowska Center has begun. A modern building, the construction of which will start at the turn of 2024/2025, offers 4,700 sqm of service space and 2,700 sqm of office space.

Office & mixed-use development

Czech Republic Hila takes off in Prague

schedule 23 May 2024
Opr./edited by JC

Passerinvest Group symbolically launched the construction of the multifunctional Hila building in Brumlovka, Prague 4. Upon its completion in 2027, the building will provide a combination of approximately 20,500 sqm of offices for rent, 71 rental flats and retail spaces of 2000 sqm.

Office & mixed-use development

Hungary Vitrum to be handed over in autumn 

schedule 23 May 2024
Opr./edited by ANZ

Liget Center Vitrum, part of Wing Liget Center multi-building project developed by Wing in the centre of Budapest, is structurally complete. The new boutique office be completed in the autumn.

Hotels

Hungary Skybar opens in Budapest

schedule 22 May 2024
Opr./edited by ANZ

Cloud IX, Budapest’s latest panoramic skybar, has been opened in the ibis & Tribe Budapest Stadium Hotel in the WING Liberty building. Opened last December in Budapest’s District IX, the hotel complex boasts a total of 332 rooms and a wide range of services.

Investment & finance

Poland Green financing for three CPIPG office assets

schedule 22 May 2024
Opr./edited by ANZ

CPI Property Group Poland has concluded a green refinancing transaction with Aareal Bank amounting to more than EUR 277 mln. The funds received will be used for the refinancing of three Warsaw office properties: Warsaw Financial Center, Equator IV and Eurocentrum.

Office & mixed-use development

Poland Mercer isn't moving out

schedule 22 May 2024
Opr./edited by JC

Global firm Mercer, part of the Marsh McLennan Group, has renegotiated its lease at the myhive Nimbus building and remains at 7,300 sqm.

Residential

Poland First residential units in Towarowa 22 project

schedule 22 May 2024
Opr./edited by ANZ

The residential part of the Towarowa 22 project in Warsaw is taking off. Archicom is starting to sell flats in the first building under the Archicom Collection brand, which will stand in the immediate vicinity of the planned park.

Residential

Romania Phase III of The Level Apartments takes off

schedule 22 May 2024
Opr./edited by ANZ

Romanian residential developer Redport Capital has announced the start of construction of Phase III of The Level Apartments. The project has received a building permit for 105 apartments to be developed with an investment of EUR 13 mln.

Warehouse & industrial

Poland CTP will build for dogs

schedule 22 May 2024
Opr./edited by JC

CTP has been appointed by dog food manufacturers PsiBufet and Butternut Box to build a specialist facility to produce fresh dog food for distribution across continental Europe. The new facility is being developed in a build-to-suit model at CTPark Zabrze.

Warehouse & industrial

Panattoni Park Kraków East IV is ready

schedule 22 May 2024
Opr./edited by ANZ

Panattoni has completed the construction of Panattoni Park Kraków East IV. The completion will be financed with a EUR 10.5 mln loan from Bank Gospodarstwa Krajowego. The facility has been fully leased by Omega Pilzno.

Office & mixed-use development

Poland Batory I is fully let

schedule 21 May 2024
Opr./edited by JC

ZST (Zintegrowane Systemy Techniczne) has increased the size of its head office in the Batory I office building. As a result of the expansion, the Warsaw office building owned and managed by Globalworth Poland is now fully leased. 

Office & mixed-use development

Poland Some Oxygen for IT company

schedule 21 May 2024
Opr./edited by JC

LSI Software, a provider of IT systems that enhance operations and business management, has become a new tenant of the Oxygen Park office complex in Warsaw.

Warehouse & industrial

Poland New park from Panattoni

schedule 20 May 2024
Opr./edited by JC

Panattoni is launching the construction of a new speculative centre in the Łódź region. The project is to have an eventual size of close to 30,000 sqm

Office & mixed-use development

Poland Baskerville gets independent

schedule 20 May 2024
Opr./edited by JC

Baskervill, an international architectural, engineering, and design firm, opened up its office in Gdańsk. A 200-sqm space is located in Officyna building.

Office & mixed-use development

Poland House of Skills is staying at Bolero

schedule 20 May 2024
Opr./edited by JC

Consulting and Training Consortium, owner of House of Skills and e-learning.pl brands, has extended its lease at Bolero Office Point 1 in Warsaw. The new lease agreement provides the entire organization with 900 sqm of office space that has been signed through 2030.

Warehouse & industrial

Romania Cargus opens its new hub in Sibiu

schedule 17 May 2024
Opr./edited by ANZ

CTP expands its partnership with Cargus, a courier company in Romania, with the inauguration of a new location in Sibiu.

Office & mixed-use development

Poland UBC II will be modern again

schedule 17 May 2024
Opr./edited by ANZ

Atenor, the Belgian developer responsible for the Lakeside development in Warsaw's Mokotów district, intends to renovate the neighbouring UBC II building. The project received planning permission in March this year.

Office & mixed-use development

Poland Axi Immo stays in the tower

schedule 16 May 2024
Opr./edited by ANZ

Axi Immo has decided to extend its existing lease and add new space for its growing business lines in Warsaw's Spektrum Tower office building.

Warehouse & industrial

Romania VGP Park Bucharest North will grow

schedule 16 May 2024
Opr./edited by ANZ

VGP, a European provider of logistics spaces and semi-industrial real estate, has initiated the construction of the third building in VGP Park Bucharest North (A3). Building A covers an area of almost 26,000 sqm and has already two tenants, who have signed lease contracts for a total of more than 8,000 sqm.

Latest in Residential

schedule 22 May 2024

First residential units in Towarowa 22 project

The residential part of the Towarowa 22 project in Warsaw is taking off. Archicom is starting to sell flats in the first building under the Archicom Collection brand, which will stand in the immediate vicinity of the planned park.

schedule 22 May 2024

Phase III of The Level Apartments takes off

Romanian residential developer Redport Capital has announced the start of construction of Phase III of The Level Apartments. The project has received a building permit for 105 apartments to be developed with an investment of EUR 13 mln.

schedule 06 May 2024

Downtown Yards are for sale

135 of the 650 residences have already been sold in the pre-sale phase of JTRE’s new Downtown Yards project. The mixed-use neighbourhood in Bratislava is currently under construction.

schedule 25 April 2024

JTRE enters German market

Slovakian developer JTRE is launching its first project in Germany. The Nordhafen Living & Office multifunctional project will be built in the Europacity area in Berlin's Berlin-Mitte district.

schedule 17 April 2024

Berlin residential market report 2024

According to the Berlin 2024 Residential Market Report by real estate financier Berlin Hyp and real estate service provider CBRE, purchase prices have fallen, while pressure on the rental housing market continues to increase. As a result, rental prices are continuing to rise sharply.

schedule 04 April 2024

One United Properties moves into premium housing

One United Properties has concluded a memorandum of understanding with CPI Property Group for the acquisition of a 21 ha site close to the Eroii Revoluției metro station just south of Bucharest city centre. The project planned on the site should see the construction of round 5,000 housing units.

schedule 04 April 2024

Prefabricated for students

Solida Capital Europe and 1 Asset Management selected Pekabex for the execution of the purpose student housing PBSA project located in Puławska street in Warsaw.

schedule 03 April 2024

Poznań's new landmark may be established

Orpea Polska has sold a plot of land on the site of a former hospital on ul. Szkolna in Poznań. The new owner is AP Marchewka Investment from Wrocław, which plans to develop an urban-creating investment there in cooperation with the Vox brand.

schedule 11 March 2024

Bonarka Meadows has been sold

Revetas Capital has recently concluded the disposal of Bonarka Meadows in Krakow, a permitted residential development project, to Henniger Investment.

schedule 06 March 2024

More student dorms in Poland

Signal Capital Partners, Griffin Capital Partners and Echo Investment will launch a new student housing platform. Firstly, the joint venture is aiming to develop a portfolio of 5,000 student beds across key academic cities in Poland over the next three to five years.

schedule 22 February 2024

New residential project in Prague's Vysočany

Rezidence Klíčov, a current major SHD Real Estate residential project in Prague, is moving into the construction phase. The project located in Vysočany, Prague 9, is expected to be completed next year.

schedule 07 February 2024

KönigsTOR is ready

KGAL Wohnen Core 3 handed over the KönigsTOR Regensburg neighbourhood development. The building complex offers new homes for more than 800 people.

schedule 07 February 2024

Łódź goes with the Flow

The Flow project has launched in the New Centre of Łódź. The project developed by Archicom will occupy a 2-hectare site between the Łódź Fabryczna railway station and the EC1 scientific and cultural complex.

schedule 01 February 2024

Redport Capital has plans for 2,000 flats

Redport Capital will build more than 2,000 flats and 15,000 sqm of commercial space in the northern part of Bucharest over the next six years. The developer's plans include the expansion of The Level Apartments project and the development of Infinity Nord.

schedule 04 January 2024

Penta sells a property in Prague

At the end of the year Penta Real Estate completed the sale of residential project in Dykova Street in Prague 2 - Vinohrady. The value of the project is in the order of CKR hundreds of millions of and the buyer is Fidurock.

schedule 12 December 2023

Downtown Yards ready to take off

J&T Real Estate has been granted planning permission for the Downtown Yards project in the centre of Bratislava. The developer plans to develop a total of around 650 flats. Sales of the units and construction work will begin in 2024.

schedule 01 December 2023

More then 500 units under the Lett brand

In two years, Finnish developer YIT has built and handed over more than 500 rental units in Warsaw to the Nrep fund. The flats were built in three Warsaw districts - Ursynów, Bemowo and Mokotów.

schedule 10 November 2023

PBSA remains on students’ radar

Cushman & Wakefield has released “Poland Student Accommodation Report” on the student housing market in Poland. Supply of public and private halls of residence fails to keep pace with growing demand.

schedule 06 November 2023

LivUp takes off in Kraków

LivUp has delivered another 78 long-term rental flats to the market. The company's latest project is located at ul. Zaczarowane Koło in Kraków's Bronowice district. The first tenants have already moved in.

schedule 31 October 2023

Akcent City takes off

Akcent Development has started the construction of the Akcent City project, consisting of 723 apartments, in the Bucuresti Noi area, the largest residential project authorized in Sector 1 after the nZEB regulations came into force. The complex will attract a EUR 90 mln investment.

Edition 5 (288) May 2024

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