Berlin is growing further – although slower than in the year 2017. According to a recent report by the advisory committee of land value, sales growth amounted to five percent in the previous year, while total sales of almost 19 billion euros were reached at the same time – a new record. In the year prior to that, a growth by eleven percent has been recorded, which was accompanied by lower sales figures, however.
With that, sales of residential and business buildings grew by 15 percent in 2018, which is even stronger than sales of single- or two-family houses (13 percent), which the advisory committee traces back to high-priced sales. The amount of sold properties in comparison with 2017 however dropped from 30,000 to 27,300 – a decline by nine percent. This complies with the recent development, where since 2015, owners and builders were less and less willing to sell their properties and plots (in 2015, these were still 32.400 objects). Excluded from that were apartment buildings and undeveloped plots, whose sales increased by four or seven percent respectively in the previous year.
Lesser condominiums were sold as well. While these amounted to 19,300 sales in 2017, this number went back to 17,000. What stayed the same however, were the total sales. Almost 5.2 billion euro were earned in both years, which – in relation to sold areas – suggests a price growth by ten percent. Condominiums in new constructions, which the report displayed separately, increased their prices by the same share from 5,180 to 5,690 EUR/sq m.
According to the advisory committee, migration, low interests and good economic conditions were the main factors for the market’s positive development. The fact that the amount of sales, as well as the sales figures of office buildings and business properties declined by 15 percent or 17 percent respectively, is merely yet another sign of the enormous surplus demand.
The report of the real estate market in Berlin is getting released annually by the official expert panel. While doing so, all concluded purchase contracts are being included in the evaluation.
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