Property Investment Regions in Berlin

Marzahn-Hellersdorf

The borough is characterised by the large number (approximately 100,000) of prefabricated concrete buildings, known as "Plattenbauten"

The "Plattenbauten" buildings are constructed with pre-cast concrete slabs, dating from its pre-partition socialist past) and are home to approximately 50% of the residents of the borough. The Borough districts include Marzahn (pop 104,000) which is in the north of the borough and developed from a village area. The mass housing "Plattenbauten" developments of socialist times increased the population in the district dramatically when completed in the 1980's. Developments in the district since re-unification include both retail and recreational. Since 2000 residential development occred in the Landsberger Gate area between Landsberger Allee and Eisenacher Str. The stock of Plattenbauten" blocks were also dramatically reduced.

The bottoming out of rents is about the best that can be expected for the borough in the near future.

This will probably leave the borough further adrift from the average rates for the rest of Berlin. Without any strong driver for improvement, apart from general overflow from the more expensive neighboring boroughs, the borough looks like the least interesting for all but the most speculative investors.

Vacancy Rate – 11.4% (Berlin Average 4.5%)

Rental levels – 4.8-5.4 Eur per Sqm (Berlin Average 6.25 – 6.40 Eur)

Unemployment – 14.4% (Berlin Average 13.6%)

Rental demand for new letting – trend level

Afford ability of rent (% of net income) – 19.6% (Berlin average 26.6%)