Berlin Market Study

Population Development

  • Berlin is the capital of Europe’s largest economy.
  • Approximately 3,4 Mill. inhabitants (including outskirts 4,3 Mill.).
  • Migration balance (immigration/emigration) turned positive in 2000.
  • Berlin is favoured - especially by young people - as a place to live.

Economy

  • The rate of unemployment in Berlin is currently 19.2%; the Federal average is 11.3%.
  • Berlin’s economy has underperformed the German average for 10 years.
  • Construction output has been reduced significantly between 2001 - 2003. Output in 1991 at €4.6 billion, 1995 at €5.5 billion and in 2003 falling to €2.4 billion.

Residential Property Market

  • Berlin has a total of 1.87 million apartments, there are currently 130,000 vacant, most are located in East Berlin’s concrete slab buildings “Plattenbauten”.
  • Residential new building construction output has fallen significantly.
  • Rental demand on good locations is rising.
  • In comparison to the top 7 German Residential Property Market, 47 % of the transactions with almost 52 % of the total volume take place in Berlin.
  • This clarifies the flexible entry possibility.
  • The demand of international investors in this market rises.
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