Old building or new build? Are you looking for a property but don’t know whether to opt for a new build or an old building? We will provide you with information about the housing market in Berlin and inform you about the possible advantages and disadvantages of both options.
How are old and new buildings differentiated?
When differentiating between new and old buildings, the year of construction is usually the decisive factor. The year of construction describes the time at which a property is completed and therefore ready for occupancy. However, there is no precise limit that clearly distinguishes between old and new buildings. For this reason, attention is often paid to certain construction features in the workmanship of the building.
Old building
There is no precise regulation for the definition of an old building. Nevertheless, old buildings usually consist of materials that are rarely or never used nowadays. These include masonry walls, box-type windows, wooden beam ceilings over three meters high, floorboards and parquet flooring, as well as maids’ or pantries and stucco. In terms of material and construction, concrete walls and ceilings and insulated and laminated glass windows are indicative of late older buildings. In tenancy law, buildings built up to 1949 are considered old buildings, whereas income tax law sets the limit at the year of construction 1924. In addition, buildings whose useful life of the room-enclosing and load-bearing components is coming to an end should be counted as old buildings. On average, the useful life of the building components is around 80 years, which means that houses over 60 years old already count as old buildings. This corresponds to an approximate limit that marks the year 1948. Houses or apartments in old buildings have a charm all of their own that cannot be compared with any new-build property. The attention to detail in all its decorative subtleties makes a property in an old building a special eye-catcher.
New building
Although the limit for old buildings is 1949 or 1924, a building that was built after this limit is not yet considered a new building. In most cases, this term covers newly built and previously unoccupied houses. In the new federal states, such as Brandenburg, Saxony, Saxony-Anhalt, Brandenburg and Thuringia, houses built after 1950 are considered new builds. Often, prefabricated buildings also fall under this title.
Old or new: how do you live in Berlin?
The Berlin we know today has a long history behind it. The various decades show how it came into being and what stages it has gone through.
Until 1900: workers' quarters in old Berlin
During industrialization in the 19th century, Berlin became a metropolis of millions. As more and more workers came to Berlin, housing became increasingly urgent. The former workers’ quarters with their high stucco ceilings, ornate façades and huge bay windows are now the hallmark of Berlin’s old buildings. The backyards of the blocks of houses are a special feature of Berlin’s cityscape. Typical buildings include former tenement blocks in Kreuzberg, Prenzlauer Berg and Friedrichshain.
1901 to 1920: the time of the Berlin suburbs
Around the turn of the century, Berlin experienced a large increase in population. In 1905 there were already over two million people living in the city, although Berlin was much smaller at that time than it is today. Parts such as Charlottenburg, Neukölln and Schöneberg were independent, but here too the population continued to grow, which also boosted housing construction. In 1918, further construction of tenements was banned for the first time and Berlin, with its 3.8 million inhabitants, gradually became the Berlin we know today. This era is characterized by the Hackesche Höfe in Berlin-Mitte, as well as the construction of Art Nouveau houses with floral ornaments that reflect the style of the Gründerzeit.
1921 to 1940: Berlin Modernism
During this era, Berlin grew to a population of over four million. A quarter of today’s houses in Berlin were built between the 1920s and 1930s. In addition, affordable large housing estates were built on the outskirts. Instead of the confinement of the numerous backyards, the new motto of the Berlin cityscape was air, light and green. Housing construction declined in the course of this decade. The buildings were no longer characterized by floral ornamentation, but by simple, clear forms. The plaster façades were unadorned and rows of buildings were built with green spaces. Typical buildings from this era include the Schillerpark, Britz and Siemensstadt estates, as well as the Carl Legien housing estate and the Weiße Stadt.
1941 to 1960: The Second World War, reconstruction, material buildings and prestige projects
The war brought housing construction to a standstill. Numerous houses and apartments were destroyed during the bombing of Berlin. Reconstruction only began in the 1950s. The houses of the post-war period were characterized by minimalist designs and remained unadorned. For the most part, functional buildings were erected, most of which had small windows. The Tiergarten in the Hansaviertel district and Karl-Marx-Allee are among the typical buildings of the era.
1961 to 1990: Prefabricated buildings in East and West Berlin
After the Wall came down, two different approaches were taken to shaping Berlin’s cityscape. All of the tenements were either neglected or completely demolished, with a large number of houses and other buildings disappearing over large areas. The so-called area redevelopment or clear-cut redevelopment was mainly carried out in the districts of Wedding and Neukölln. Housing construction, on the other hand, tended to start on the outskirts of the city. The western part of Berlin was known for its large housing estates, whereas the east was a prefabricated housing area. Building elements that were already industrially prefabricated were mainly used in both parts. In addition, flat roofs in particular found their place in the Berlin cityscape.
1991 to 2000: A time of redevelopment and growth in the eastern part of Berlin
At this time, the dream of owning a house with a garden was a particular desire of many Berlin residents. The areas that had previously been undeveloped were filled with estates of detached houses or smaller blocks of flats. This was mainly realized in the districts of the north-east, such as Blankenburg, Französisch Buchholz and Karow. In the already built-up parts of Berlin, such as Biesdorf, Mahlsdorf and Kaulsdorf, as well as Tierpark, new single-family homes were added as owners divided up their large plots of land. Potsdamer Platz was also one of the largest inner-city construction sites in Europe. Old buildings were renovated and could still be afforded by ordinary residents due to the lack of a Berlin boom.
2001 to 2020: Berlin changes its face
As more people left Berlin after the turn of the millennium than arrived, housing construction in Berlin stagnated. For three years, very few if any new apartments were built until 2003, when Berlin began to gain new residents again. As soon as housing construction got going again, it was mainly luxury buildings that were built for a particularly affluent clientele. These luxury buildings include the Yoo, which is a popular residential tower near the East Side Gallery. The cheaper residential buildings, on the other hand, were built decentrally on the outskirts of the city. Overall, fewer apartments and houses were built in this era than in any previous year.
Advantages of apartments in old buildings
- Optimum integration into the living environment
- Comparatively more favorable conditions and circumstances than new buildings
- Renovations enable individual design
- No long lead time required
- Visits can be made on site and directly
- Previous owners and tenants can share experiences
Disadvantages of old apartments
- High refurbishment, renovation and modernization costs
- Monument protection often prevents conversion measures
- Poor energy efficiency
- Lack of underground parking
- Moisture makes itself felt in cellars
Advantages of new-build apartments
- Freely selectable environment, size and shape
- Individual design options
- Modernization is not necessary
- Construction company can be selected freely and directly
- State-of-the-art planning and alignment
- Stable and secure performance
Disadvantages of new-build apartments
- Low ceiling height
- The certain charm is missing and the apartments sometimes seem “cool”
- Rather decentralized location
The price difference between old and new apartments
Compared to new buildings, apartments in older buildings are generally significantly cheaper. A square meter in an old building in Berlin costs an average of 3,928 euros, whereas a square meter in a new apartment costs an average of 5,583 euros. This represents a price difference of 40%. Depending on the size of the apartment in question, there can be almost six-figure differences in the purchase price. Among other things, this value depends on the region and location of the property. For example, buying an apartment of 70 square meters can result in a price difference of 110,000 euros.
Although old buildings are comparatively cheap to buy, there are often unexpected additional costs that were not included in the purchase price. It is therefore important to carry out a thorough inspection of the property in order to estimate upcoming renovation and maintenance costs. There may also be additional costs for insulation, painting and suitable furnishings. Although old buildings, including additional costs, are always cheaper than new-build apartments, as a buyer you must expect a price increase of almost 30% due to the renovation work.
Conclusion
When asked which option is more popular on the housing market, the following can be said: although old buildings require regular and costly renovation and modernization, new-build apartments are clearly in a higher price segment. When it comes to the housing market, new builds are always priced higher than older properties, but older properties are also starting to rise significantly in price. Which type of property is ultimately more popular depends solely on the preferences of buyers and tenants and therefore cannot be answered in general terms.
