Robust population growth continues to fuel a strong rental market.
Berlin is the most populous city in the EU with 3.7 million residents as of 2020, and on track to surpass 4 million by 2030. As 83% of Berliners reside in rental properties, the expansion in population has mounted more pressure on the already strained housing stock, driving rents up. With such a strong rental market, investors are seizing the opportunity to invest in Berlin property.
The diverse and resilient economy is underpinned by job growth in future oriented technology-based sectors.
More than 420,000 new jobs have been created in Berlin since 2009, with almost 50% created in the technology-based, knowledge-intensive business services sector. Berlin is a start-up capital, and one of the most prolific start-up hubs in Europe with 40% of all German start-up jobs created in the city. Due to the high calibre new job creation, Berlin incomes grew an impressive 34% between 2009 and 2017.
Berlin’s housing market remains structurally undersupplied with a deficit of at least 86,000 units (2019).
Economic and population growth are expected to outstrip supply until at least 2030. As a result, the city’s prime market was one of only three global cities in Europe to experience capital appreciation (+3.1%) in the first half of 2020. With such robust structural factors underpinning the market, investing in Berlin property has never been so attractive.