Anyone entering the Graefekiez in Kreuzberg will find themselves in a completely different era. The old buildings from the Wilhelminian era are lined up closely together in the streets. They were largely spared during the Second World War and are now admired by visitors and residents alike. The neighborhood is much better maintained than other parts of Kreuzberg, which is why the apartments are in high demand. If you want to find a property to rent or buy here, you have to be quick. Some prospective buyers search for a long time until they find the right property at a price they can afford. But the effort is worth it, because there is hardly a more interesting location in Berlin. In addition to stylish bars and small stores, there are numerous restaurants and quiet cafés in the Graefekiez district of Berlin. The so-called Zickenplatz is particularly popular. Its official name is actually Hohenstaufenplatz, but as the square was used as a goat pasture in the past, it is commonly known as Zickenplatz in the vernacular of Berliners.
Find out in this article how the situation on the real estate market in the Graefekiez has developed in recent years and what forecasts can be made for tenants, buyers and sellers for the future.
Interesting facts about the Graefekiez
The Graefekiez is located in the Kreuzberg district of Friedrichshain-Kreuzberg in Berlin. It is one of the neighborhoods in the metropolis with a particularly high density of old buildings. Most of the buildings date back to the Wilhelminian era and feature magnificently decorated stucco façades, balconies and stately entrances. The apartments, which are often generously proportioned, have high ceilings, wooden floors and modern kitchens and bathrooms. In this way, you can live in an authentic old building without having to do without anything that modern living standards require. You won’t find luxurious villas in the Graefekiez, but the quality of life is still extremely high.
Geographically, the Graefekiez in Berlin can be classified between the Volkspark Hasenheide and the Landwehrkanal. It is enclosed by the Urbank Hospital and Kottbusser Damm. Even though the neighborhood is one of the liveliest residential areas in Berlin, the streets, facades and stores are very well-kept. In the afternoon, you can meet up with friends in a pretty café for a good slice of cake and then head to one of the stylish bars.
Graefestraße as a neighborhood conservation area
In Berlin, more and more residential areas are being designated as social and urban conservation areas. Graefestraße in the Graefekiez district of Friedrichshain-Kreuzberg is no exception in this respect. In recent years, the real estate market in many parts of Berlin has changed significantly. Residential buildings that stood empty during the GDR era and were left to their fate have been renovated with great passion in recent years. The investments were high, but they have catapulted the general real estate market to unprecedented heights. Much to the delight of the owners, but to the chagrin of many tenants who can no longer afford the housing. Politicians in Berlin are trying to counteract these developments in order to maintain the social and urban fabric. The aim is to avoid rent increases so that housing remains accessible to a broad section of the population. The Graefestraße milieu protection area is intended to ensure that the urban and social fabric in the Graefekiez does not change too much and that the residential area remains available as rental space for residents.
You can find out more about the milieu protection areas in Berlin and what this means for tenants and landlords in our further article.
What is the real estate situation in the Graefekiez?
Around 19,500 people live in the Graefekiez in a total of just over 10,000 apartments. There is a housing deficit of 1447, which reflects the situation on the real estate market very well. Kreuzberg is generally a sought-after district. Residential areas such as Graefekiez, Chamissokiez and Viktoriaplatz are extremely popular with people looking for a home. There are hardly any other residential areas in Berlin that are so centrally located and have such a high number of old buildings. The standard of the apartments is classified as mid-range. The prices should therefore still be affordable, as most apartments have high ceilings, original wooden floors and generously proportioned floor plans, but you will look in vain for luxurious interiors.
Graefestraße, which is centrally located in the Graefekiez, has been a protected area since 1995. This also has an impact on the real estate market, as owners need specific permits to make changes to their properties. If you want to sell your condominium, you will find a buyer within a very short time. If you are looking for a condominium or a rental apartment, you will have to compete against a large number of competitors.
The purchase price trend for real estate in Graefekiez
There are no reliable sources that disclose the purchase price development for real estate explicitly for the Graefekiez. For this reason, the prices in Graefestrasse 1 are presented in this section as representative of the entire neighborhood.
The purchase price trend in the Graefekiez parallels the trend in Berlin as a whole. However, property prices in the Grafekiez are significantly higher. For condominiums, they are around € 1,800 above the average price per square meter in Berlin. Even though interest rates for real estate loans have risen significantly in recent months, there is no sign of a slump in demand for real estate. The market is proving to be extremely stable and it can be expected that condominiums in the Graefekiez will continue to enjoy great popularity in the future.
How much does a condominium in the Graefekiez cost?
In the third quarter of 2023, the average purchase price for a condominium in the Graefekiez district was €5,983/m2, 2.2% below the average price in the third quarter of 2022.
In the third quarter of 2023, the average purchase price for a condominium in Berlin as a whole was € 4,179/m2. Here, too, there was a decline of 3.0% compared to the same quarter of the previous year, which is why we can speak of a parallel trend. The average purchase price in the Graefekiez is around €1,800 above the Berlin average. It is clear that the Graefekiez is one of the most sought-after residential areas in the metropolis. Although there is living space available and condominiums are always being sold, anyone who wants to find a home in this neighborhood has to react quickly to new offers. If you want to buy an apartment in Graefekiez, you should make your decision within a short space of time.
The data is based on the information available for properties at Graefestraße 1.
How much does a house in Graefekiez cost?
New housing estates with spacious homes and small gardens are increasingly being built on the outskirts of Berlin, for example at Stadtforst in Berlin-Köpenick. In central residential areas, on the other hand, it is difficult to buy a detached house. The supply is very limited, as most apartment buildings contain several condominiums or rental apartments.
Nevertheless, the following information can be found for Graefestraße 1, and thus representative of the Graefekiez:
In the third quarter of 2023, the average sales price for a house was € 7,289/m2 and therefore around € 2,700 higher than the average purchase price for Berlin as a whole. Over the 12-month period, the price decline amounted to 8.2%, as the average purchase price in the third quarter of 2022 was still € 7,940/m2. By the third quarter of 2022, purchase prices for houses in the Graefekiez had risen steadily. Despite the slight downward price trend in recent months, demand is not expected to collapse in the future.
The rental price trend for real estate in the Graefekiez
Rents are rising steadily throughout Berlin. In recent years, landlords have repeatedly tried to exhaust the rent cap and drive up prices. Their concern is based on the high investments that have been made over the years. After all, hardly any apartments are in the same condition today as they were a few years ago. They have been renovated and in many cases even completely refurbished. However, as part of the milieu protection measures, it was decided that rents may not be set according to the landlord’s own assessment. Instead, they must adhere to certain conditions and regulations.
Nevertheless, rents in Graefekiez rose by 20.5% between the third quarter of 2022 and the third quarter of 2023. The average net rent in the third quarter of 2023 was €15.34/m2 and therefore around €3.20 above the average for Berlin as a whole.
If you want to rent a property in the Graefekiez in Berlin, you have to be quick. Despite the high price level, apartments usually find a suitable tenant within a very short time. It helps if you compile all the necessary documents in advance.
Conclusion on the real estate market in Graefekiez
The analysis has shown that the Graefekiez in Berlin is one of the most popular residential areas in the German capital. It is a centrally located district in which the small stores, cafés, restaurants and bars make a well-kept impression. The Graefekiez is much quieter than the Bergmannkiez, for example, but no less sought-after. The apartments are in good condition, have recently been renovated and have everything you would expect of a mid- to high-end residential standard. If you want to live in the city center but still want to find a quiet spot, you will definitely want to look for a property in the Graefekiez in Berlin. Despite the slight downward trend in purchase prices in recent months, a condominium in the Graefekiez is also suitable as an investment property.
