Two-bedroom flats in Berlin
Buying a two-bedroom flat in Berlin: facts and figures
Real estate prices in Berlin are still relatively low compared to other major cities in Germany and across the world. If you compare real estate prices in Germany’s ten largest cities, Berlin ranks seventh in terms of average buying price per square metre. Look at rent prices and you’ll see a similar pattern: on average, one square metre in Berlin rents for €9, whereas in Munich, you’ll pay €15.72.
Two-bedroom flats – top value, low price
Purchase prices vary within Berlin as well. Smaller flats usually come with a lower price tag per square metre, which makes studios and one-bedroom apartments particularly lucrative investments. A flat of up to 80 square metres, for example, will cost €3,540 per square metre on average, while properties between 80 and 120 square metres sell for around €4,300. Those apartments over 120 square metres can cost up to €5,300 per square metre. So if you want to buy a home but don’t want to invest an enormous amount of capital, a one-bedroom apartment might be the perfect fit.
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How saturated is the market?
Berlin is a city of renters – what does that mean for investors?
The Berlin real estate market currently offers excellent opportunities for buying a two-bedroom apartment. At just under 14 percent, the proportion of Berlin residents who own their own homes is the lowest of any German city; Berlin, in other words, is a city of tenants. This is good news for investors. For one thing, it means that competition is scarce when it comes to buying, yet all the more fierce among prospective tenants. Finding a suitable tenant for your property is much easier in Berlin than in other parts of Germany.
Prewar or modern building?
When buying a two-bedroom, should you opt for the traditional prewar style or a newly built apartment? In Berlin, both types are widely available, each with different advantages and disadvantages for investors. At an average of €3,600 per square metre, new apartments are a bit pricier than prewars, but have the benefit of less hassle down the line, particularly in regard to maintenance and refurbishment costs.
Prewar buildings, on the other hand, are slightly more affordable, averaging around €2,600 per square metre in Berlin, though prices vary depending on the neighbourhood. While prewars may entail higher maintenance and refurbishment costs than a new apartment, they do offer another significant advantage: most are already occupied, meaning that owners don’t have to spend time and energy finding a tenant. Of course, should you ever need to find a new tenant, ZIEGERT is happy to help; with our letting service, we assist you at every step of the way.
Market conditions and the advantages of a two-bedroom flat
A glance at the Berlin real estate market reveals that 37 percent of available two-bedroom apartments are in prewar buildings, with another 25 percent in buildings erected after 2000.
The benefits of buying a two-bedroom flat include:
1. A lower purchase price, especially beneficial for prospective buyers with less available capital
2. An ideal market situation due to high demand
3. High availability in many districts across Berlin
A growing urban population – how does this affect the real estate market?
Since 2011, Berlin’s population has been growing at a rate of 1.5 percent annually. More residents means more people in search of housing, a demand the city has thus far been unable to meet. According to a recent study conducted by our British partners at Knight Frank, Berlin currently needs 20,000 additional housing units, almost double the 10,800 that have thus far been built. This presents a definite advantage for potential investors: less properties are available for rent, and owners are at greater liberty to choose their ideal tenant.
Number of new properties in Berlin
Now is the ideal time to exploit these trends as the city is currently planning to ramp up new housing construction in order to address the imbalance between high demand and low supply. Looking back at housing trends of the past two decades can be useful in weighing the merits of a purchase decision. In Berlin, there’s been a significant decline in new housing construction since 1995, with the lowest point reached in 2005, when only 5,000 new units were built. In recent years, however, we’ve seen something of a turnaround, with a significant construction boost in 2010 and the numbers only increasing. That’s why there’s no better time than now to invest!
City of singles – and two-bedroom apartments
In 2018, Berlin ranked number one compared to all other German cities for proportion of one-person households – nearly 55 percent. This is an advantage for prospective buyers, who will benefit from the high market demand for two-bedroom homes. A diverse city like Berlin offers a plethora of flats to choose from, in all different styles and sizes. Certain districts are particularly popular among singles, most notably Friedrichshain and Kreuzberg. These trendy areas in the eastern part of the city are brimming not only with bars, clubs, and restaurants, but also exhibition spaces, galleries, and a stock of two-bedroom apartments that makes up 40 percent of the neighbourhoods’ total available residential real estate.
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Real estate ownership – an excellent choice for couples
Two-room flats offer an optimal living space for many childless households, whether singles, couples, or seniors; they’re a particularly good option if you’re looking for an affordable way to buy. Not only are smaller apartments more reasonably priced, they keep all other living costs comparatively low.
The relatively small overall area of a one-bedroom, for example, will keep energy costs down compared to larger flats. This is especially advantageous for two-person households; according to figures collected by the German Federal Statistical Office, energy consumption in a two-person household is not double as high as in a one-person household, but only 43 percent higher. That’s because couples tend to undertake energy-consuming activities together, whether it’s cooking meals or watching TV. More importantly, most running costs, including maintenance fees, remain the same regardless of the number of tenants.