The report found that rent in Berlin has increased by nearly 70 percent between 2004 and 2016.
Professional services company Jones Lang LaSalle Incorporated (JLL) reported last week that in 2016, Berlin experiences the biggest increase in rental price since the firm started observing the real estate market in 2004.
In 2004, the average price for an apartment was about €6 per square metre. But in the second half of 2016, the price topped €10 for the first time, rising to €10.15 per square metre.
The below graph shows just how steeply prices have climbed over the past 12 years, according to the company’s data.
“Cities like Munich and Berlin with high rates of immigration registered high increases, despite the implementation of rent control,” said Roman Heidrich of JLL in a statement.
A major reason for the sharp price increase in Berlin is the simultaneous increase in new Berlin residents.
“The number of residents rose in Berlin by eight percent since 2010,” Heidrich said.
“If the prognosis of four million residents by 2030 is met, that would be a further increase of nearly 15 percent from where we stand today."
But the report notes that the amount of housing built during that time has not kept up with the growing population, only increasing by two percent between 2010 and 2015.
“Despite intensified new construction activities, since 2013 there has been a slowdown in construction activity in Berlin.
“Hamburg could be used as an example: through the higher volume of new buildings, the Hanseatic City’s price increases were slowed down.”