Positive outlook for the market for residential and commercial properties
At 1.7 billion euros, the transaction volume on the Berlin market for residential and commercial property (WGH) was 53% higher than in the same period of the previous year, reports Engel & Völkers Commercial Berlin.
The commercial property market is becoming noticeably more dynamic again. There is increased optimism among investors, particularly following the turnaround in interest rates by the European Central Bank (ECB) in June. Further interest rate hikes by the ECB could reinforce this trend, giving the market an additional boost.
Reference objects from Potsdam & Brandenburg
Increase in rents in major cities
At the same time, major cities are continuing to record significant rent increases. While the average asking rent for existing flats stabilised in the 2nd quarter compared to the previous quarter, marking the first quarter without an increase since the beginning of 2023, the metropolises showed a different trend. In the A-cities, asking rents rose by 1.5 %, in the B-cities by 1.1 % and in the C-cities by 0.5 %. This continuous increase underlines the continuing high demand in urban centres.
Interest rate turnaround is only a matter of time
Currently, asking prices for commercial properties are still at a comparatively favourable level. However, our experts expect the turnaround in interest rates to lead to an increase in prices in the medium term. This could motivate investors to invest more in commercial property before prices rise further. Overall, developments show that the market for commercial property is gaining momentum again, which is reflected in higher transaction activity.
Investor interest
Potsdam remains an attractive investment location with a promising future. As an up-and-coming region, Potsdam remains popular with potential investors and buyers. In addition to many listed, stately properties, the properties are particularly interesting for investors if satisfactory returns can be achieved.
Interest rate cut
The commercial property market is also developing positively following the interest rate cut. Buyers are increasingly optimistic about investing in secure and sustainably developed properties. The increase in investment activity due to market-driven offer prices is already reflected in a higher transaction rate.
High demand
The property market in cities like Potsdam remains robust. Despite economic challenges, demand for residential and commercial property is high, especially in well-connected urban areas - but cannot be met for the most part due to excessively high asking prices.
Legal challenges
From 2025, legal requirements will increase again (GEG, Supply Chain Act, CO₂ tax) and a decline in demand is expected.
Influence of the Green Deal
The EU Green Deal is changing banks' valuation approaches with regard to the mortgage lending value of properties. Away from the creditworthiness of the buyer and towards the sustainability of the property. Environmentally friendly and energy-efficient properties tend to be valued higher as they are more future-proof and economically sustainable.
Investor interest
Potsdam remains an attractive investment location with a promising future. As an up-and-coming region, Potsdam remains popular with potential investors and buyers. In addition to many listed, stately properties, the properties are particularly interesting for investors if satisfactory returns can be achieved.
Interest rate cut
The commercial property market is also developing positively following the interest rate cut. Buyers are increasingly optimistic about investing in secure and sustainably developed properties. The increase in investment activity due to market-driven offer prices is already reflected in a higher transaction rate.
"Potsdam enjoys the advantages of the Berlin economic area without the disadvantages of a city with over a million inhabitants. The state capital of Brandenburg is an attractive business, science and investment location and is experiencing significant population growth. Investment property continues to be a safe haven for capital. We expect demand to remain high in the future, as the region has enormous development potential - also for companies. Rents for residential property have increased again slightly compared to the previous year."
Luise Wissinger, Managing Director
Interested?
Claudia Rahns & Carmen Liersch Property Consultancy Sales Brandenburg & Potsdam
ENGEL & VÖLKERS COMMERCIAL Shop Potsdam Phone: +49 331 27 91 00 Mail: [email protected]
Market report for residential & commercial properties in Potsdam
Potsdam is both a former royal seat and an innovative science center and, according to a recent study, is one of Germany's up-and-coming regions. The Potsdam area and its investment properties are increasingly attracting the attention of (international) investors and continue to be a safe haven for capital. In our market report, you can find out more about the current trends, developments and opportunities in the area of residential and commercial real estate investments in Potsdam in order to provide you with sound insights into this up-and-coming real estate landscape.
Market report for residential real estate in Potsdam
Demand for real estate in Potsdam, which is rich in lakes, continues to outstrip supply. Although the volume of sales has declined in recent quarters, the classic detached house in particular is still very much in demand. Waterfront villas in particular are achieving top prices. We confirm that Potsdam is a location that retains its value and, as a trend region, is expected to see one of the highest increases in real estate prices in the whole of Germany over the next ten years.
Potsdam & Brandenburg remain very popular
Potsdam and Brandenburg an der Havel remain particularly attractive investment locations. The cities are characterised by their historical significance, their listed charm and their continuing importance as a region with a promising future. Investors can benefit here in particular if they focus on properties with satisfactory returns.
Use the current market advantages and the remaining economic potential to successfully market your property together with us!
Current commercial property
Interested?
Anja Gnest-Oppenborn Property Consultancy Sales Brandenburg
ENGEL & VÖLKERS COMMERCIAL Shop Brandenburg an der Havel Phone: +49 3381 31 59 500 Mail: [email protected]
