The Berlin District of Pankow is Eying a New "Milieuschutz" Area

Pankow has currently 9 protected areas, "Milieuschutzgebiete"

Arnimplatz, Bötzowstraße, Falkplatz, Helmholtzplatz, Humannplatz, Kollwitzplatz, Teutoburger Platz and Winsstraße. Some of them were covered in this blog.

No.10 is in the making:

Danziger Straße Ost

Millieuschutzgebiet Danziger Straße Ost

Photo by Jonas Denil on Unsplash

Property Risk Analysis for 12 districts and 96 Boroughs of Berlin

Alt-Treptow is currently Berlin's most attractive district for residential investment.

This is the result of the risk-return ranking of Dr. Ing. Lübke & Kelber, in which for the first time all twelve districts and 96 boroughs of the capital were analyzed.

Alt-Treptow, which borders Kreuzberg in the north of the Treptow-Köpenick district, scores points in both the existing and new construction segment. There, as well as in Rummelsburg and Konradshöhe in the portfolio segment as well as Wilhelmsruh and Rosenthal in the new-build segment, the recoverable property and equity returns would exceed the recommended risk-adjusted minimum return the most. Lübke & Kelber. Overall, the districts in the north of Berlin (Prenzlauer Berg, Pankow, Französisch Buchholz and Weißensee) had the lowest risk for investment in residential real estate. The highest risk premiums would result for the districts in the southwest.

Distribution of the international population of #Berlin by nationality and district

Distribution of the international population of Berlin by nationality and district

Foreign population of Berlin

• People from about 190 countries call Berlin home and make this city a truly international metropolis.
• In 2015, 114,000 persons came to Berlin from abroad, about a quarter of which have Syrian nationality.
• The share of people from foreign countries in the total population is 17.2 percent.
• Berlin is a cosmopolitan city with international educational and cultural institutions.
• Workers from western European industrial nations and the states of central and eastern Europe are migrating to Berlin.

 http://www.businesslocationcenter.de/en/business-location/business-location/economic-data/demographic-data

Asking rents decreased in certain areas of Berlin in 2014

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.