Berlin's Rental Crisis Deepens as Demand Surges for Medium-Sized Apartments
Berlin's rental market faces a severe shortage, with demand outstripping supply, particularly in lower and middle price segments. Industry experts predict a further decline in the supply of rental apartments, making it increasingly difficult for residents to find accommodation.
The IBB's market assessment, based on around 200 expert opinions, reveals that only the highest price segment maintains a balanced supply and demand relationship. Construction costs and lengthy building permit procedures are major obstacles to increasing housing stock.
The greatest demand is for medium-sized apartments between 70 and 100 square meters, which are scarce in lower and middle price segments. Key players in the Berlin residential real estate sector, such as Vonovia SE and Aroundtown SA, are grappling with this challenge. They anticipate rising rents, increased investment volumes, and a focus on Core, Value-Add, and sustainable 'Manage-to-Green' assets in the coming years.
The tense rental market in Berlin, exacerbated by a shortage of medium-sized apartments in lower and middle price segments and a decreasing number of social housing units, requires urgent attention. Stakeholders must address the central obstacles to new housing construction to alleviate the housing situation.
