German Rental Markets: Berlin

Today we initiate a new series of articles, dedicated to the rental markets in the most popular cities in Germany. The first article addresses the current rental market in the capital city, Berlin.skyline Berlin - Rental MarketWith over 3.5 million inhabitants, Berlin is by far the most densely populated city in Germany. And according to the majority of statistics dedicated to this issue, the situation is not going to change that fast. The reasons of Berlin’s popularity are hard to oversee. The city has a great infrastructure, a strong entrepreneurial flair and the majority of people speak English. Berlin is considered to be one of the most liberal cities in Europe.

Moreover, the city attracts due to its booming business climate, which results in plenty attractive work opportunities for newcomers from all over the world.

Growing population and its influence on the rental market

Until 2025 the city expects population growth of about 300.000 people. Even though this is great news in terms of the Berlin’s development, the population growth also brings some challenges with it. Especially for the rental market, which some already now describe as a “nightmare”.

rental market BerlinAccording to Statista Berlin is currently is one of the most expansive cities in the country in regard to the rental price per square meter. In the 3d quarter 2017 the average rent is listed in the 11-12€/m² range. Rental prices in the furnished apartments segment are usually twice as high. But not only high rents, also shortage of vacant apartments reduces chances on getting a suitable place to stay. Especially if one has to do the house hunting on his/her own. Scarce offer and high demand results more and more often in the so called „mass viewings“ in Berlin. Often the number of viewers gets well over 200-300 but there were also already cases with up to 800 viewers and applications for an apartment.

The benefit of getting expert support

Berlin's rental market

This situation might cause tremendous amount of stress and despair to the newcomers. Especially people from abroad are affected, not being aware of the situation prior arrival and with limited German language skills. They cannot invest hours and hours into the home hunting due to their employment. Therefore we are glad to see that more and more companies offer relocation support to their employees and reach out to the professionals for that matter. It makes the onboarding process a lot easier for all of the parties.

Owing to our 34 years of experience in the relocation field we know exactly how to deal with the tight rental markets like Berlin. We would be glad to assist your employees and answer all of your questions.