Population growth and further rent increase

Berlin is growing fast. According to studies by the Senate Department for Urban Development and Housing, an estimated 200,000 apartments would have to be completed by 2030, around 20,000 per year. The housing market in Berlin is considered very tense, especially for affordable rental apartments. Compared to other german cities, Berlin recorded the highest rent increase during the last year. Berliners are less likely to change rental apartments, which makes the market for newcomers more difficult. Meanwhile, the needs for new arrivals are estimated at 117,000 homes by 2030. At present, the biggest part of projects currently being implemented are by private developers, of which about one third are private flats. By contrast, the construction activity of the state-owned housing associations is only slowly beginning. They currently account for about one third of all completions. Aggravating factors here are high land prices and higher construction costs due to higher construction prices, as well as long delays in the development of municipal real estate.

 

Europacity development area in Berlin - Photo: Christian Hajer | berlininfo guided tours

Wohnungsbau Europacity 2018 Housing projects Europacity 2018

 

Scarce land reserves for large-scale housing projects

The availability of large, interconnected land and construction potential such as war, traffic and industrial brownfields are becoming increasingly scarce. One of the last large-scale construction potential for apartments in the city-centre is being realized on former railway areas in the Europacity near the main station. At the same time, 13 further locations have been fixed as urban transformation areas and new city quarters on the inner city periphery and on the outskirts of the city. These quarters have mostly mixed use to avoid malfunctioning by monofunctionality.

The densification, increase and intermixing of formerly purely commercial areas with housing use are now the focus of planners of the Senate and districts. Occasionally, allotment colonies were dissolved and built with flats A new, so called allotment garden development plan, provides land for the further expulsion of residential development from 2030 onwards. Also several areas of urban cemeteries, fallen out of use,  are under discussion.

 

Apartment block Neukölln 2020

 

Dachausbau

Aufstockung gründerzeitlicher Altbau in Prenzlauer Berg – Historical block with extra floor on top

Remunicipalisation and repurchase of flats

The holdings of the state-owned housing associations have been increased in recent years from 200,000 to 300,000 apartments. In addition to the new building, the repurchase of apartments from the open market also played an important role. With no measurable impact from the rental price brake instrument, the city is increasingly exercising its legal right of first refusal, particularly in protected areas, in order to protect existing tenants from conversion of rental property into condominiums and prevent excessive rent increases through modernization. However, it is often attempted by the investor side to circumvent the district right of first refusal by so called “shared deals”. Another regulatory instrument here is the exemption agreement, where it waives the exercise of the right of first refusal, where the new owners adhere to the objectives of the protection of social mix.

 

Wohnungsbauprojekt in Kreuzberg

Related tours about housing in Berlin you can find here, here and here