By Hildburg Bruns, Mary-Lou Künzel and Pierre Ngendakumana
Build, build, build – currently an air number! Material prices are exploding, interest rates have quadrupled. Both slow down what the capital urgently needs: more apartments and renovations that save energy costs and CO2 emissions. Berlin before the new building collapse!
“Under the current conditions, investments can only be made at the price of rising rents or at the expense of the economic substance of the company,” warns Maren Kern (65), head of the Association of Berlin-Brandenburg Housing Companies (BBU).
Last year, rents for people moving to an average of 7.95 euros/m²/net cold – an increase of 3.8 percent! And rents for new buildings have long since broken the EUR 10 barrier: an average of EUR 10.98/m²/net (+ 6.9 percent!)
The Vonovia group has postponed the construction of 1,500 apartments in Berlin for cost reasons. In the case of municipal companies, however, Kern assumes that they will create their 7,000 new apartments per year as required. But the growing city actually needs at least 20,000 a year (16,000 in 2021).
Building more expensive – these are the reasons!
► + 39 percent increase within three years. In 2020, a square meter cost 2790 euros, this year up to 5000 euros without land.
► Insulation boards are 21 percent more expensive than in the previous year, welded wire mesh by 38 percent and glass by 49 percent.
► While interest rates were still 1.07 percent in January 2022, they are now up to 4.5 percent. Means that when financing an apartment with a 200,000 euro loan instead of 2140 euros, 9000 euros are now incurred.
Not the only price drivers! Wages are rising because workers are chasing inflation. The building land is expensive and the Senate is charging investors for schools, day-care centers etc. in return for building rights.
In order to reverse the new construction collapse, Kern calls for an “economic offensive”. The VAT on construction costs would have to be reduced from 19 to 7 percent. In addition, the planning would have to be accelerated.
Kern: “It’s high time to act – now!”
That’s what Berliners think
Personnel service provider Martin Kaiser (23) from Friedrichshain: “From the end of February I will finally be living in my first apartment of my own. Two rooms, 65 square meters, 628 euros warm. The search took a long time, about half a year. I can understand new housing being halted due to rising costs and inflation” Photo: Christian Lohse
Project manager Stephan Schüttler (45) from Hellersdorf: “Two years ago I was looking for an apartment and even found one within two days. Now I live in Hellersdorf, but that’s okay. Anyway, I don’t understand what people always want. You shouldn’t just limit yourself to one neighborhood. For example, almost everyone wants to live in Mitte” Photo: Christian Lohse
Student Vi Nguyen (27) from Mitte: “I’ve lived in my own apartment for two years, but then moved back to my mother. That’s cheaper for me as a student. I don’t intend to move out for the time being. The rents in Berlin are way too expensive” Photo: Christian Lohse
Pensioner Barbara Konrad (79) from Mitte: “I’ve lived in my apartment for 30 years and I definitely don’t want to move. Recently there was an additional cost increase of 50 euros, which is still acceptable. If I had to move because I could no longer bear the costs, a smaller apartment wouldn’t be cheaper either” Photo: Christian Lohse
Pharmacist Patricia Aragoneillo (41) from Friedrichshain: “I’ve been looking for a 3-room apartment since the beginning of my pregnancy. Now my daughter is six months old and we still have nothing. It’s okay for the next two years. But if it doesn’t work out, we might even have to go back to Madrid.” Photo: Christian Lohse
Rent in Berlin, Brandenburg and Germany
► number of rooms
654,210 apartments have three rooms, 48,276 seven and more, 97,392 are one-room apartments
► Ready apartments 2021
Berlin is in 31st place with 3.8 per 1000 inhabitants. In front Giessen (12.7), Bernau (10.9), Oranienburg (10.5), Potsdam (9) – Hamburg managed 3.9 per 1000 inhabitants
► Rent in stock
6.52 euros/net cold/m² (+ 15 cents to 2021) Cheapest in Marzahn-Hellersdorf (5.94 euros), most expensive in Steglitz-Zehlendorf (7.23 euros)
► social housing
The stock has decreased by 54,316 since 2011 to just 95,638 – the commitment period for their rents has expired. The Senate estimates the decline at 43,000 by 2030
► apartment size
On average 73.2 m² in Berlin – a mini record in Germany! Largest apartments in Steglitz-Zehlendorf (85.4 m²), smallest in Lichtenberg (65.6 m²). Nationwide average: 92.2 m²
► old buildings
Around 40 percent of the stock (793,000) are old buildings, of which 514,000 were built before 1919
► Rent in Brandenburg
5.54 euros/net cold/m² (+ 13 cents to 2021) In the suburbs 6.12 euros/net cold/m² New construction with price jump to 10.46 euros/net cold/m² (+ 27 percent)
►Brandenburg cities
Brandenburg/H. (5.17 euros/net cold/m² inventory, new contract 6.09 euros) +++ Potsdam (6.43, new 8 euros) +++ Frankfurt/O. (5.17 euros, new 5.78) +++ Cottbus (5.12 euros, new 5.45)
►comparison cities
Munich with an average of 12.05 euros/net cold/m² is 5.53 euros more expensive, Hamburg around 3 euros