Newsletter
BERLIN RENT CAP (MIETENDECKEL) SEVERELY REDUCED SUPPLY OF RENTAL APARTMENTS
13. May 2022
The supply of rental apartments in Berlin has collapsed by up to 60% due to the rent cap (Mietendeckel) and remains at this level after its abolition. This is the result of a new study by the ifo Institute. Already after the announcement of the rent cap, the supply of apartments in Berlin fell sharply. In the area not affected by the rent cap, supply increased at an above-average rate after the announcement of the rent cap, but this trend reversed with its abolition.
INCREASED CONSTRUCTION COSTS CAUSE STRONG PRICE-INCREASES FOR NEW APARTMENTS
22. April 2022
The new construction prices offered for residential real estate in Germany's ten largest cities climbed by up to 19% last year. At the same time, according to an analysis by Immoscout 24, increases of up to 20% were also recorded for owner-occupied homes in the surrounding areas.
RECORD TRANSACTION VOLUME ON THE BERLIN REAL ESTATE MARKET
24. March 2022
After the Corona dip in 2020, Berlin's real estate trade once again achieved record levels. According to the preliminary evaluation by the Gutachterausschuss für Grundstückswerte (GAA), the transaction volume in 2021 was €23.8 billion, higher than ever before.
RESIDENTIAL REAL ESTATE MARKET 2021: WITH 21 TRANSACTIONS HALF THE VOLUME
25. February 2022
In November, the transaction volume on the investment market for commercial and residential real estate amounted to around EUR 7.6 billion. The rolling twelve-month volume at the end of the month was around €113.0 billion, up 0.5% on the previous month. In the last twelve months, 2,400 individual and portfolio transactions were recorded. This is in line with the level recorded in 2020 as a whole, but 13.6% lower than in the pre-crisis year of 2019. Overall, the impression that the market is settling at a new level slightly below the prepandemic period in terms of transaction activity is becoming more firmly established.
THE COMEBACK OF INTERNATIONAL CAPITAL
19. January 2022
The transaction volume on the German real estate market was a whopping 111 billion euros. According to JLL, this represents an increase of 36% compared with 2020. This new all-time high impressively documents the attractiveness of German real estate across all types of use, with residential investments clearly dominating, of course. The signs are good that this trend will continue. This is because international investors have so far held back during the pandemic years. That is likely to change in 2022.
2021 PEAK FOR RESIDENTIAL INVESTMENT
21. December 2021
Researchers at Savills expect record transaction volumes in the German residential investment market in 2021. The reason for this is the almost perfect underlying conditions: Falling bond yields, accompanied by comparatively strong growth in population figures and household incomes, as well as very low housing completion figures.
SOON 100 BILLION EUROS IN TRANSACTION VOLUME AGAIN?
16. November 2021
In the first three quarters of 2021, real estate in Germany changed hands for around EUR 58.9 billion. Of this, commercial properties accounted for around EUR 38.3 billion and residential properties for around EUR 20.6 billion. This is the result of a report by Savills.
RECORD SALES OF 220 BILLION EUROS ON THE GERMAN RESIDENTIAL REAL ESTATE MARKET
14. October 2021
According to the German research institute Gewos, 221 billion euros flowed into the residential real estate market last year - a new record. Supply will remain tight in major cities. Stagnating or falling population figures have not changed this situation. The bottleneck is building land. Berlin is the best example of this: year after year, less land is being sold. For 2020 Gewos even reports a minus of about 20%.
Study: Microliving in the hit in urban locations
14. September 2021
Location is (almost) everything in Microliving. Compact forms of living in German inner cities are in demand, among young and old alike, as a report by the Cologne Institute for Economic Research (IW) shows. With the growing demand, purchase prices have risen everywhere, and so have rents in many places.
EUR 10 billion transaction volume on the German residential investment market in the first half of 2021
12. August 2021
According to a report by Savills, residential real estate in Germany changed hands for around EUR 10.0 billion in the first half of 2021 (transactions of 50 apartments or more).
Building Code: Many exceptions to the conversion ban
13. July 2021
The Building Land Mobilization Act has come into force and includes amendments to both the German Building Code (BauGB) and the German Land Use Ordinance (BauNVO). It is primarily intended to expand the scope for action of municipalities in tight housing markets.
Forecast Germany 2040: Fewer inhabitants more households
9. June 2021
Households are getting smaller in size, but increasing in numbers. This is according to the latest household forecast by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). The rising number of single households will fuel demand for small apartments.
Co-living providers on expansion course
10. February 2021
While the hotel industry is dying, the hour of co-living offers seems to have come more and more. Despite Corona, there is a huge growth spurt in this sector. More and more players are flooding into the market and established brands are looking to expand.
Quo vadis Real Estate Market Germany 2021?
12. January 2021
In previous years, the outlook for the coming year was always relatively straightforward. It was less a question of whether the markets would go up, but rather how much they would grow. With COVID-19, that has changed abruptly. Almost nothing is the same as before. Consequently, the World Uncertainty Index has soared to unprecedented heights and reached record levels.
German Real Estate is Highly Valued by Global Investors Even in 2021
9. December 2020
German real estate is clearly one of the winners of the Corona crisis.
CORONA: The hour of the proptechs has come
10. November 2020
The Corona crisis has also accelerated digitization in the real estate industry. Solutions from proptechs, previously seen as pure gimmicks, are now being viewed from a different angle. One example are proptechs like KIWI, which offers a digital locking system that allows all doors in the house to be opened with a smartphone or a transponder. These systems are becoming more attractive compared to earlier fingerprinted systems.
BER: What impact will the opening have on the Berlin Real Estate Market?
16. October 2020
Did you hear about the new grammar reform? it includes a new tense, Futur III, allow us to speak of the completion of Berlin/Brandenburg airport." This is just one of many jokes about the scandalous airport BER in recent years. On October 31st, 2020 this running gag will finally come to an end and the airport will be ceremonially opened.
Prices for premium Real Estate Up 3,1% in Berlin
10. September 2020
Globally the lockdowns due to Corona resulted in decreasing prices for premium real estate in several metropolises. This does not apply to Berlin, though. Berlin performed well in the first half of 2020.
Berlin remains Real Estate Investment hotspot in Germany
17. August 2020
Berlin is and remains the outstanding investment hotspot among Germany's real estate strongholds. JLL Berlin Branch Manager Rüdiger Thräne advises “Covid-19 was also unable to shake this remarkable position, the capital did not get through the crisis without investment losses. In the second quarter in particular, we had to cope with a significant slump in transactions.”
Mietendeckel: First Effects
13. July 2020
The Berlin Rental Cover Act freezes rents to the status of June 18, 2019 for a period of five years. Social housing and stocks built after 2014 are excluded. The rent cover which has been in effect since the end of February 2020 is reacting.
House Market activity was never in lockdown
10. June 2020
According to the IVD (Real Estate Association) neither falling rents nor prices will occur. The Federal Association of Real Estate Agents and Administrators advises of a new analysis of the residential property market.
Housing prices will remain stable in 2020 despite Corona
12. May 2020
The EPX (The Europace House Price Index) provides the latest evaluation based on completed transactions for owner-occupied houses and condominiums, the data showed that property prices rose by 1.08% on average in Germany compared to the previous month.
Housing is one of the most crisis-proof asset classes
8. April 2020
According to RICS Germany, the effects of the corona virus crisis on the residential asset class depends on the length of the crisis. However, this will be comparatively smaller compared to other real estate investments.