In some areas where the rent increase was high over the last years a further increase has been halted by the fact that the households living in those areas cannot afford any further increases in rent as they are already spending an average of over 30 % of their purchasing power on rent and ancillary costs.
This creates a "push" into neighbouring less expensive areas. Smart landlords have already reacted by adapting their asking rents to "what seems feasible".
Example areas are around Savignyplatz in
Charlottenburg-Wilmersdorf where the asking rent has decreased by 4.3% over a 12 months period down to 11.01€/m² per month. Similar changes could be observed at Hackescher Markt in
Mitte (decrease 3.8 % to 12.50 €/m²/month) and at Käthe Kollwitz Platz in
Pankow (down 2.2% to 11.66€/m²/month).
Specific data down to postcode districts are in the
Housing Market Report Berlin 2015 available for download at this link.
For property investors this means looking beyond historic data for investment decisions and not just extrapolating the recent trend in the
region into the investment plan. To support the development of the right
property investment strategy Falkenberg Solutions - Real Estate Consultants provide a research service.
