The real estate market in Berlin is a hot spot. We keep hearing that you have to be quick when looking for a home in the German capital and that sought-after condominiums find a suitable buyer within a few hours. But does this automatically mean that the sale of a property will go smoothly?
We shed light on the Berlin real estate market from a seller’s perspective and explain the criteria that determine the value of a condominium in the Sprengelkiez in the heart of Berlin and how the market in this Berlin neighborhood has developed in recent years.
Selling a property in the Sprengelkiez - an overview of the current market situation
The real estate market across Germany was hit by several challenges this year. It was initially unclear what long-term effects the coronavirus pandemic would have on the market and how the conflict in Eastern Europe would affect property prices in Berlin. The political situation has significantly delayed the construction of new properties. Raw materials and other building materials are experiencing shortages. Added to this are the interest rates for loans, which have risen significantly this year. This inevitably has a direct impact on prices on the Berlin real estate market. Many families cannot afford to take out large loans at the current conditions. Investors with equity, on the other hand, find the situation extremely interesting, as prices have fallen in many parts of Berlin in recent months.
The situation on the Berlin real estate market is currently not as stable as it was two or three years ago. But what does this mean in concrete terms for your property in the Sprengelkiez?
The price trend for real estate in Berlin's Sprengelkiez district
If you look at the price curve in the Sprengelkiez, you will notice a high increase overall. Prices have risen continuously for over 12 years. Among other things, the extensive renovation work that has gone into condominiums and houses has contributed to this.
Between the third quarter of 2021 and the third quarter of 2022 alone, a price increase of 12.5% was recorded in Sprengelkiez. In 2023, however, there was stagnation, which is representative of the situation on the entire Berlin real estate market. This development is due to the political situation in Eastern Europe and rising interest rates for loans.
Between the third quarter of 2022 and the third quarter of 2023, prices rose by just 2.6 percent. But what does this mean in concrete terms and what sales prices can currently be expected for a condominium or house in the Sprengelkiez?
What price can a condominium in the Sprengelkiez be sold for?
Property prices in the Sprengelkiez are not quite as high as in the neighboring residential districts. The cheapest property was sold for €3,750/m2 this quarter. However, there are also significantly higher condominiums. The best sale took place at a price of €8,520/m2. We take a closer look at how these differences come about and how you can reliably estimate the value of your property elsewhere in this article.
The data obtained shows an average sales price of €4,200/m2 for properties in Berlin’s Sprengelkiez for the third quarter of 2023.
The prices refer to Sprengelstraße, which is used here to represent the entire Sprengelkiez. The building structure in the Sprengelkiez is characterized by large apartment buildings. There are hardly any detached houses, which is why no reliable information is available for this segment. If you would like to sell your house in the Sprengelkiez, please contact us directly for a personal consultation. We will provide you with individual support and analyze the characteristics of your house so that the sale goes smoothly.
Criteria for determining the value of real estate in the Sprengelkiez
In addition to the characteristics of the property, there are numerous criteria that define the general value of real estate within a neighborhood.
The Sprengelkiez is located in the central north-west of Berlin. This alone makes it very popular with newcomers and Berlin investors. But there are also factors such as infrastructure, gastronomic offerings and general quality of life.
Central location in Berlin and good local transport connections
In many parts of Germany, young families are currently moving to the countryside. Pretty plots of land with detached houses are all the rage, as children should be able to grow up in peace.
It’s different in Berlin. Even if a rural location has its advantages, the German capital proves time and again that it can offer its residents an exceptionally high quality of life. Central residential areas in Berlin are therefore very popular.
Added to this is the Sprengelkiez’s excellent infrastructure. Most Berliners travel by bike or public transport. Finding a parking space is difficult, so you can usually reach your destination much faster by bus or train.
Many local recreational opportunities, urban greenery and proximity to water
Even if you are in the Sprengelkiez in the heart of Berlin, green spaces and parks are close by. In the afternoon, many Sprengelkiez residents are drawn to the Berlin-Spandauer-Schifffahrtskanal. People meet up for a picnic on the meadows and then the children let off steam in one of the playgrounds.
The wide range of local recreational opportunities increase the quality of life and ensure that even more couples or young families want to move to the Sprengelkiez. This has a positive effect on the price of your property for sale.
Culture and gastronomy on site
If you live in the center of the metropolis, you have short distances to everywhere. Even though Sprengelkiez is a quiet residential area and far fewer tourists are drawn to the streets around Sprengelkiez than to Friedrichshain or Charlottenburg, for example, there is a wide range of gastronomy and culture on offer locally.
This is an advantage for the value of your property, because a high quality of life also means that you can meet up for an evening meal in a nice restaurant or visit a gallery around the corner in the afternoon.
Good food, small, lovingly furnished cafés and quaint bars make the Sprengelkiez a very desirable place to live.
Location in the social conservation area
Milieu protection is in place in most neighborhoods in central Berlin. Property prices have risen so sharply in recent years that the social structures in the neighborhoods have changed significantly. Politicians also want to counteract gentrification in the Sprengelkiez and have therefore declared the area around Sparrplatz a milieu protection area.
The decision has a major impact on the buying and selling of real estate. The fact that condominiums cannot be changed without going through an application process makes many potential buyers hesitate. Rental space may not be converted into condominiums without further ado and no changes may be made that affect the structure of the living space.
The requirements and consequences of environmental protection are complex, but we will be happy to analyze them with you in a personal meeting.
Conclusion
The sale of a property is always associated with great expectations. When it comes to selling your own home, you usually have big plans. A change of scenery is on the cards because the family is planning to move, for example.
With an investment property, you hope to make a good profit. Even though prices in Berlin have risen significantly overall in recent years, this development does not automatically mean a successful sale of your own property. The Sprengelkiez in the middle of Berlin’s Wedding district offers good basic conditions. In addition to the general market price and the characteristics of a condominium, there are numerous other factors that can have a positive or negative impact on the real estate business.
It therefore makes sense to consult a professional real estate agent and seek expert advice.
