In Berlin, rents for new contracts are rising inexorably – and the 2023 housing market report reveals a massive gap.
In Berlin there is an increasing gap in rents between new contracts and existing apartments. This is the result of the current housing market report 2023, which the Investitionsbank Berlin-Brandenburg (IBB) has now presented. According to construction senator Christian Gaebler (SPD) and Hinrich Holm, chairman of the IBB, the asking rents for newly rented apartments in the capital have risen drastically.
On average, interested parties had to expect a price per square meter of 13.99 euros for new contracts in 2023 – an increase of over 21 percent compared to the previous year. The price increase was even more noticeable for new apartments, with rents climbing to an average of 19.85 euros per square meter. In comparison, the existing rents seem downright moderate at an average of 7.16 euros per square meter.
Rents in Berlin: Price explosion in the city center – but also in the surrounding area
Building Senator Christian Gaebler (SPD) explained that current housing construction in Berlin would not be enough to cover demand. However, the Senate wants to continue to promote new housing construction in the capital.
In view of the gap between existing rents and new contracts, IBB CEO Hinrich Holm sees not one, but two housing markets in Berlin: “That’s why we have to expand the range and at the same time offer rent- and occupancy-controlled apartments in order to provide low-income population groups with social housing.” He also referred to an IBB fund, which was recently worth around 717 million euros, and from which builders can receive funding for new buildings in the city.
The development in downtown Berlin is particularly noteworthy, where average asking rents have risen to 17.80 euros per square meter. In addition, certain places in the Berlin area – such as Teltow, Bernau and Großbeeren – have recently been recording higher asking rents than the outskirts of Berlin. And Potsdam is now also surpassed in price by the surrounding towns, according to the IBB balance sheet.