Rising rents in Berlin: an accelerated new-build programme is the only effective solution
Interview with Yiannis Tzakris
Press: Real estate news
We will soon have one year of the traffic light coalition behind us. The alliance of SPD, FDP and Greens started the legislative period with ambitious goals. One of them was to build 400,000 new flats per year to counteract rising rents. New construction would alleviate the situation. Yiannis Tzakris, Managing Director of Black Label Property Management, takes a critical view of market developments in Berlin. In our interview, he reports on the current housing situation in the capital.
Mr Tzakris, what kind of flats do you and your team manage?
Yiannis Tzakris: We are responsible for a total of around 1,000 residential units. The majority of these are located in Berlin, with some in Saxony and the rest of Germany. The spectrum ranges from new, old and prefabricated buildings to luxury homes. I would categorise 200 of these flats as very expensive.
Horrendous rents: Price sensitivity is falling in Berlin
What does very expensive mean to you?
Yiannis Tzakris: In Berlin, prices are now often over 30 euros per square metre. Such rents are almost the norm in Kreuzberg and Neukölln in particular, but in general, living within the S-Bahn ring has become very expensive in the last six to seven years. There was a brief period of stagnation in 2021, but prices are now rising again. But we also manage affordable flats, which start at three to four euros per square metre. However, prices like that can only really be found in rural areas or small towns - in Wittenberge or Magdeburg, for example. In Berlin, we have the feeling that price sensitivity is decreasing. People are willing to pay horrendous prices that would have been unrealisable four years ago.
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