Housing Market Report Berlin 2023

Dear readers,

The war in Ukraine has led to the loss of many more things that we normally take for granted than was the case during and after the pandemic –and naturally this is also having an impact on the housing market in Berlin. Dramatic increases in interest rates and construction costs have rendered the calculations of some property developers more or less useless, and have almost put a stop to the new construction activity that is so urgently needed in the capital. At the same time, the sharp increase in energy costs has focused more attention on the topic of sustainability. All of this has made the situation even more difficult for the many people who are searching for an apartment in Berlin. It seems that trying to find an affordable apartment in the capital is like looking for the proverbial needle in the haystack – and actually being able to land an apartment is like winning the lottery.

The question is: do suitable funding programmes, accelerated planning and approval processes, an increase in the amount of land designated for development and prefabrication offer a solution to the problem? The outcome of the election for the Berlin House of Representatives that had to be repeated on 12 February 2023 offers an opportunity to refocus Berlin’s housing policy, and will hopefully also generate some urgently needed new momentum on the housing market. Indeed, the lack of housing in Berlin has the potential to further the divisions that have already become apparent in the city – and such a development must be prevented at all costs. So, let us all do whatever we can to get the housing market back on track for the benefit of Berlin.

Pleasant reading!

Sascha Klaus                         Michael Schlatterer