Berlin was a divided city for more than 40 years. In the 1990s, the two districts began to grow together. Between history, tradition and modernity, Berlin developed its very own flair. Today, people from all over the world live in the German capital. The population has grown considerably, especially in the last 10 years. The German capital has established itself as a trailblazer for the cultural scene. Artists and freelancers live primarily in Neukölln, Kreuzberg and Prenzlauer Berg. But Berlin has something to offer everyone. The city’s special history did not just begin with the division: the German capital grew out of numerous surrounding villages, many of which have retained their own charm to this day. The abundance of greenery, the numerous churches and the tranquil streets away from the noise of the big city can be found in no other capital.
Berlin-Mitte as the center of the city
Berlin-Mitte is the declared center of the city. This is where you will find the sights that attract visitors from all over the world, where the government is based and where life pulsates. As a result of the district reform in 2001, the original Mitte district was downgraded to a local district. At the same time, a new large district of Mitte was created, which, in addition to the Mitte district that gave it its name, is made up of the districts of Moabit, Hansaviertel, Tiergarten, Wedding and Gesundbrunnen. All the information in this article relates to today’s Mitte district, which is also the historical core of the capital.
Purchase price trends for real estate in Berlin-Mitte
The real estate market in Berlin-Mitte is extremely lively. This is not least due to the increased influx of new residents, which is continuing unabated due to Berlin’s high level of attractiveness. Where there is little living space available, prices are rising. This is particularly true of the Mitte district, which is extremely popular with locals, but also with many newcomers. The Purchase prices for a condominium rose by 10.4 percent between the 4th quarter of 2021 and the 4th quarter of 2022.
At 6.6 percent, the price increase for houses in the same period was eslightly lower than for condominiums out. In this context, it is important to know that there are hardly any classic detached houses with gardens in the Mitte district. Instead, there are apartment buildings for sale. These are generally fully let. Taking over the existing tenancy agreements is an obligation for the new owner. Termination would only be possible if the tenant breaches the tenancy agreement or if the new owner can register their own requirements. The Self-use of a rented condominium is therefore not possible without further ado. This can push the price down when buying a house.
Buying property in Berlin-Mitte
Are you planning to buy a property in Berlin-Mitte and would like to find out about prices? These differ depending on whether you want to buy a house or a condominium. Unlike in many other districts, houses in Mitte are cheaper than condominiums. However, the decisive factor is what you want to achieve with your purchase. Do you want to buy a condominium to live in or to rent out? When you buy a house in Berlin-Mitte, you almost automatically decide to rent it out. The vacancy rate in this district is very low, so you automatically take over the tenancy agreements. This means that if you want to buy your own home, you only have the option of buying a vacant condominium. Alternatively, you can notify the tenants of the apartment of your own requirements, but experience has shown that terminating your own requirements is a long and often problematic process. In any case, you as the owner must prove that you really need the apartment.
How much does a condominium in Berlin-Mitte cost?
There are a large number of apartment buildings in Berlin-Mitte where you can invest in a condominium. This is due to the development in this district. These are mainly apartment buildings from the Wilhelminian era, old buildings, but also buildings from the time when East Berlin was the capital of the GDR. Houses with this architecture can be found around Alexanderplatz and in Karl-Marx-Allee. Prices depend on supply and demand and can hardly be quantified exactly. However, there are approximate values that can help with orientation. For the 4th quarter of 2022, for example, an average purchase price of around 6,985 €/m² as an approximate value. Over the 4-year period, i.e. since the 4th quarter of 2018, the average purchase price has risen by 46%.
Condominiums in existing buildings are often cheaper
A lot has been built in the Mitte district in recent years. The demolition of old buildings was followed by the construction of new apartment buildings, with Apartments to a very modern standard. The prices for a condominium in a new building are therefore sometimes significantly higher than for an old building. This is particularly true if it is a first-time occupancy and if the new build is of a very high standard. There are also existing buildings that have been extensively restored. In many cases, this is also a first-time occupancy after renovation, as the houses have been vacated for the purpose of extensive renovation. The prices for these apartments, which are generally also of a high standard, can easily exceed the 7,000 €/m² lie. In addition to the renovation status, demand also plays a decisive role. As this remains high, you should not expect prices to fall in the foreseeable future.
How much does a house in Berlin-Mitte cost?
Houses are slightly cheaper to buy in Berlin-Mitte than condominiums. There are 2 main reasons for this: The condominium is considered a popular form of housing, mainly for people who move to Berlin from other regions and want to settle permanently in the capital. The condominium has great appeal as a capital investment, but also as a retirement provision. If you invest in a house in Berlin-Mitte, it is usually a rented apartment building. However, as a rented apartment building is usually less attractive than a property that you can live in yourself, the prices are somewhat lower than when buying a condominium.
On average buyers paid around € 5,648/m² when purchasing a house in Berlin-Mitte in the 4th quarter of 2022. €/m². Please note that this is only an approximate value and that the purchase price may vary upwards or downwards in individual cases. In order to develop a reliable feeling for the assessment of asking prices, it is advisable to observe the real estate market more closely for a certain period of time.
Rental prices for apartments in Berlin-Mitte
In Berlin-Mitte, apartments are not only available to buy, but also to rent. As with the purchase price, it also makes a difference to the rent whether it is an apartment in an old building or a new build. Rents in existing buildings are often somewhat cheaper due to the generally lower level of comfort. For the 4th quarter of 2022, the average net cold rent in the Mitte district to 14.95 €/m² (approximate value). Looking at the 4-year period, i.e. between the 4th quarter of 2018 and the 4th quarter of 2022, this results in a price increase of 24%. The rent for a new-build apartment is now likely to be well above the €20 mark .
Apartment sizes must be taken into account
The size of the apartment also plays a role in the rental price. Apartments with 40 to 60 square meters and larger apartments with an area of between 80 and 100 square meters are particularly popular. If you want to rent an apartment of this size, you will generally pay a higher rent. Very large or small apartments, on the other hand, can be rented for a lower price per square meter. Overall, the level of rents in Berlin-Mitte is very high. The reason for this is that there is virtually no social housing in this district. Renting takes place on the open housing market. There are also a large number of landlords who have very individual pricing policies. It is essential to compare different offers if you do not want to pay too much.
The locations and districts of Berlin-Mitte
Berlin-Mitte is characterized by different locations, each of which has its own special flair. This has to do with the history, the buildings, but also with the central location. If you would like to live in the district, it is advisable to take a closer look at the individual residential areas. This is especially true if you are not yet very familiar with the city. Every neighborhood in the Mitte district is different. This is what makes Berlin special and sets it apart from other major cities. Finding a residential area where you feel comfortable is often not so easy. We would like to introduce you to a few locations in Berlin-Mitte.
Old Berlin
Berlin developed from two villages on opposite banks of the Spree: Berlin and Cölln. Today, this area is often referred to as Old Berlin. It is the center where you will find Museum Island, the rebuilt Berlin Palace, the cathedral and the Nikolai Quarter, which has also been reconstructed. On the edge of Alexanderplatz is St. Mary’s Church, built in the 13th century and one of the oldest churches in Berlin. The street “Unter den Linden” leads to Berlin’s landmark, the Brandenburg Gate. The seat of the governing mayor is located in the Rotes Rathaus. In Alt-Berlin you live in the heart of the vibrant capital and the traces of history are right on your doorstep.
Dorotheenstrasse and Friedrichstrasse
Dorotheenstadt and Friedrichstadt are locations in the center of Berlin that were created during the Prussian era. Friedrichstraße with its Friedrichstadtpalast and Tränenpalast, the building where West Berliners could cross the border to the east of the city, are closely linked to the city’s more recent history. Pariser Platz in front of the Brandenburg Gate, Gendarmenmarkt with its concert hall and the street “Unter den Linden” with Humboldt University form the center of this area steeped in history. There are many apartments in old buildings in this quarter, most of which are in an excellent state of refurbishment. The central location and excellent public transport connections make the residential areas extremely attractive.
Alexanderplatz
Berlin’s Alexanderplatz was once the dazzling center of East Berlin. During the Gründerzeit, the square was surrounded by villas which were heavily destroyed during the Second World War. During the GDR era, modern buildings were erected. The World Time Clock and the television tower were regarded as important landmarks of the socialist state and In the large Centrum department store on the edge of Alexanderplatz, the range of goods on offer was significantly larger than in other parts of the GDR. After reunification, the square initially lost its importance. Since 2019, the area around Alexanderplatz has been a protected neighborhood. This means that structural changes require special permission and that the character of the neighborhood should be preserved.
Spandauer Vorstadt
The Spandauer Vorstadt gives the district of Berlin-Mitte a very special charm. This is where the Hackesche Höfe are located, a center with apartments, restaurants and attractive shopping opportunities. The Scheunenviertel was once inhabited by Berlin’s Jewish population. However, they moved to Charlottenburg before the war. It was only after reunification that the Scheunenviertel was extensively renovated. Today it is used for recreation and once again has a special charm. Oranienburger Straße runs through the Spandauer Vorstadt with the synagogue, another testimony to the former settlement of the Jewish population in this area.
Rosenthal suburb
Rosenthaler Vorstadt is located in the north of Berlin-Mitte near Alexanderplatz. Rosenthaler Platz is located in the center. There you can enjoy the vibrant life of the city around the clock and get a hot pizza or Berlin’s favorite fast food dish, the kebab, even in the middle of the night. Chic renovated old buildings adorn the Rosenthaler Vorstadt, but unfortunately there is also heavy traffic, as the area is considered a hub to the city. If you love the vibrant life and short distances and would also like to meet lots of people for a chat, then Rosenthaler Vorstadt is the right district for you.
Center Southeast
In the south-east of the Mitte district, you will not only find the classic old buildings from the Wilhelminian era. This area of the capital was heavily destroyed during the Battle of Berlin in April 1945. After the division, the area belonged to the Soviet occupation zone. In Leipziger Strasse, for example, typical prefabricated buildings were built along the lines of the districts on the outskirts of Moscow or St. Petersburg. Today, these apartments have also been renovated or combined into two-storey maisonettes. Around the Ringstrasse, however, there are once again classic buildings. Köllsche Park is a popular destination for local recreation.
Center Northwest
The north-west of the Mitte district is very modern. This is particularly true of the townhouses on the Schifffahrtskanal, all of which offer a view of the water. However, the residential area is one of the more expensive in Berlin-Mitte. In this area, which extends north of the Berlin Central Station hub, a modern Europacity is to be built with other advanced to futuristic buildings. This forms a contrast to Old Berlin, which you can reach on foot from here. The north-west also includes the Oranienburger Vorstadt, which is home to the Dortheenstädtischer Friedhof cemetery, where many famous people are buried, as well as the Natural History Museum, which is known far beyond Germany’s borders.
Conclusion
Berlin-Mitte was an independent district until 2001. The administrative reform at that time created a new, larger Mitte district, which now includes the former Mitte district as a suburb. The districts of Gesundbrunnen, Tiergarten, Hansaviertel, Moabit and Wedding also belong to the new Mitte district. Today’s district of Berlin-Mitte gave the new district its name and still represents the historic center of Berlin. The historical origins of the capital can be found in the Alt-Berlin district. However, evidence of this can only be guessed at today.
If you would like to live in Berlin-Mitte, you can opt for an apartment in a new or existing building. The development is particularly dense in the side streets. On the other hand, the distances to famous sights and historical sites are short. This is one of the many special features from which Berlin-Mitte draws its charm. If you would like to find out more about the district, we recommend the second part of our article “Buying real estate in the Berlin-Mitte district – interesting facts, residential areas, demographics & more“. There we will inform you about the infrastructure, the composition of the population and the leisure activities available to you in Berlin-Mitte. These options are extremely diverse and varied in the district.
