Berlin: Less Properties Sold While Prices Rise

Both property sales and revenue decrease in Germanys capital – but not due to a lack of demand. A higher profit, however, has been determined for condominiums.

Rising sales don't equal more living space in Germany's capital. (Source: pexels.com)

The housing market in Berlin is still highly competitive. According to a recent report by the German Press Agency dpa, an ongoing rise in prices has been announced – all while housing shortages continue. Demand is unabated strong, so that less properties were being sold in the first half of 2018 compared to the previous year period.

Between January and July, 8,338 condominiums were sold, which poses a decline by twelve percent. With 2.52 billion euro however, revenue increased by two percent. According to Reiner Rössler, chairman at the dpa, “no turnabout occurred”. The problem does not lie with a lack of interest in the capital’s real estate properties. “It’s rather a shortage. Areas became smaller”, he explains.

All in all, revenue for all traded houses, apartments and vacant lots decreased by nine percent to 7.24 billion euro compared to the first half-year. This leads back to the differing locations of these objects, rather than low prices. The amount of all traded real estate properties lowered by eight percent to 13,308.

Sales data was provided by the evaluation team of the city of Berlin, which records all real-estate transactions within the city. For the statistics of the first half year, sales contracts had to be closed until the end of August in order to be considered.

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