The price of owner-occupied flats / condos in Berlin is expected to continue to rise over the next couple of years. This is according to a study by the property portal Immowelt, and reported in the Berliner Morgenpost this week.
Berlin prices are expected to rise by 24% from 2017 to 2020, which is slightly higher than the expected German average of 22%.
The main reasons given for the increase are the increasing pull of people towards the big cities, with therefore demand outstripping the supply of apartments for owner-occupation.
The prognosis is based on the assumption that the European Central Bank base interest rate is left at zero. An increase of this rate would cause a gentle slowdown of the price increases.
Link to the article (in German):
As a backdrop, here are latest headlines from the IVD (Immobilienverband Deutschland) pricing service: 2017 saw a continued narrowing of the gap in prices between the preferred areas and less preferred areas of Berlin. Owner-occupied apartment prices increased in the most preferred Berlin locations by around 11% (2016: 12,0%, 2015: 13,6%) and in standard areas by around 12% (2016: 13,5%, 2015: 12,2%).