On 02.03.2017, the IMMOBILIEN ZEITUNG reported that standard land values in Berlin continue to rise strongly. The latest increases are revealed in a preliminary analysis of developments during 2016 which has just been published by the Berlin Committee for Land and Property Values.
According to the committee’s figures, Pariser Platz is the most expensive location in Berlin, at EUR 60,000 per square metre (EUR 10,000 more than at the start of 2016). To the south of Torstrabe in Berlin-Mitte, the price of development land zoned for the construction of apartment buildings has climbed to EUR 5,000 per square metre. Land prices have surged by more than 60 percent in a number of districts just outside the city centre.
In less built-up residential districts, i.e. those dominated by detached and semi-detached homes, standard values jumped by roughly 30 percent. Inside Berlin’s commuter rail ring, the price of land in some commercial zones rose by over 50 percent. Last year, transactions involving land in Berlin totalled around EUR 16.25 billion.
No property price bubble in Berlin
Despite the fact that, in isolated and geographically specific cases, residential property prices are excessive, the FAZ reported in 2017 that there are no indications that a property price bubble is developing in Berlin’s residential market. Deutsche Hypo fully expects that property prices will continue to develop dynamically, forecasting further rises for 2017, although at a more moderate level. Key parameters such as population, employment, economy and tourism are developing strongly, all of which will continue to benefit Berlin’s real estate market.