The Property Market in Berlin
Berlin's Impressive Growth Story:
Berlin is a city on the rise, with a population surge of approximately 19,500 new residents annually for the past 20 years. This trend is set to continue, and by 2040, Berlin's population is expected to exceed 4.1 million people. While this growth is fantastic for the economy, it places significant strain on the already limited housing supply.
A Resilient Economy:
Over the last two decades, Berlin's economy has demonstrated remarkable resilience, outperforming many other European cities. During the global recession from 2005 to 2009, Berlin's economic growth was twice that of the entire country. Even in the face of the COVID-19 pandemic, Berlin's economy remained robust. Between 2019 and 2022, Berlin's GDP grew by 13.17%, surpassing cities like Frankfurt (10.16%) and London (12.51%).
Investment Potential in Berlin's Housing Market:
Berlin's housing market presents promising investment opportunities. The city's population growth has far outpaced its housing supply. Since 2000, Berlin's population has increased by nearly 430,000 people, necessitating approximately 242,555 additional housing units. However, fewer than 200,000 flats have been constructed or renovated during this period. Considering the projected housing demand and assuming current completion rates, an undersupply of over 87,000 units is expected by 2040. As demand continues to rise and supply struggles to keep pace, Berlin's vacancy rate has dropped from 3.5% in 2011 to under 1% today.
Population is forecasted to grow by 1.2 million by 2040, a 124% increase since 2000.
Anticipated undersupply of over 87,000 housing units by 2040.
The economy boasts a GDP of over EUR 348 billion, with a 94% increase in GDP per capita since 2000.
