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Area Residents Unemployment rate Average income Vacancy rates (flats) Flat prices Flat Rents Projected Yield Price Income Ratio Owner Occupancy Rates |
44.93 km² 305,000 19.2% 1325 euro/month 5.7% 1100-1500 - typical 1315 (€/m²) trend → 5.0 - 5.6 (typical 5.3, down 4%) (€/month) trend ↑ 5.0% 1.0 (€/m² / €/month) 12.5% (Berlin Average 13%) |
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Until 1912, the district now known as Neukölln was called Rixdorf, an area with a diverse history stretching back to the time when it was the villages of Britz, Buckow, Rudow and Rixdorf. It was incorporated into a greater Berlin in 1920. Neukölln is one of Berlin's 12 boroughs. It derives its name from Berlin's former twin settlement of Cölln (long ago absorbed into Berlin, and which in turn was named after Köln, or Cologne). It lies within the former West Berlin, and was the district with the longest section of border with East Berlin. The Borough is located directly south of the city centre stretching from the boundary with Kreuzberg in the north to the city limits and Brandenburg in the south. Approximately a third of the population of the borough has an immigrant background.
The Building structure within the borough varies from the "High Density" typical Berlin tenements in the city end of the district. In the south of the borough there are mostly large suburban housing estates with many high-rise buildings peppered with some old village areas. Two notable developments include the Britz estate from the mid-war years and the Gropiusstadt development which is one of the two largest residential settlements in the former West Berlin.
There are known social issues in the borough with many of the most disadvantaged districts in Berlin located within the borough. The districts of Neukölln are; Neukölln, Britz, Buckow, Rudow and Gropiusstadt.
The sub-district of Neukölln (pop 148,000), which gives its name to the whole borough, covers all of the "City Centre" part of the borough. The northern section of the sub-district Neukölln is very urban as it merges into Kreuzberg and is dominated by Berlin's typical 5-storey apartment blocks. The northern district contains one of Berlin's most lively squares, Hermannplatz which adjoins the popular shopping avenue of Karl-Marx-Str. Close by in the old centre of Rixdorf is one of the most beautiful and relaxed downtown old-building-quarters in Berlin which includes the Böhmisches Dorf (Bohemian village) centred at Richardplatz. This part of the district has a long urban history and presents a well preserved architectural heritage.
South of the district of Neukölln is the district of Britz (pop 38,000) where there is a core of low-cost housing originally constructed to provide cheap large-scale residential estates, "Economic building structures" for workers and their families who were attracted to Berlin by the industrial development of the 1920's. This district contains the remarkable horseshoe building of the "Britz Estate". Located in the original Britz estate the horseshoe building is at the heart of the estate and was a signature building for this new type of development.

When built between 1925 and 1933 the estate had over 1000 flats based on a standardised plan, with buildings connected as rows and each terraced house had its own tenant's garden (this was the original design in the "horseshoe" itself).
Individual blocks were set forward or back to provide relief in the design with plazas added to counter any intensity in the building layout.
In the middle of the borough is the district of Buckow (pop 30,000), which unusually, contains two separate geographic areas, one to the south west of the borough and the second on the east. Buckow is separated by the "Gropiusstadt" (pop 35,000) a satellite city originally with nearly 20,000 homes. The "Gropiusstadt" was designed by Walter Gropius and built between 1962 and 1975. Between 1966 and 1975 the "Gropiusstadt" was constructed as a "city-within-a-city" on the southern edge of the borough, near the former border with the surrounding East Germany. Designed by architect Walter Gropius it originally accommodated over 35,000 residents but quickly became notorious as a problem zone. The high-rise area today houses around 40.000 people and has a questionable reputation.
The Rudow (pop 54,000) district covers the south eastern extremities of the borough and consists mostly of simple, but dull, new build apartments in reasonable low density layouts.
Within the southern area of the borough there are stretches of semi rural environments featuring canals and waterways.

Economically Neukölln is still suffering from high unemployment with one of the highest rates in Berlin and one of the lowest income levels. Overall population levels in the borough are probably stationary or dropping very slightly mainly driven by migration to other boroughs by the upwardly mobile residents of the borough. The northern part of the borough has a high proportion of non-German residents, mainly from Turkey and Arab countries. However, the district has developed a reputation in recent years as something of a "problem zone", with high rates of unemployment compounding existing social issues. The term I like best that describes the area is "gritty, this is not an area for those of a sensitive disposition who would be more at home in the grand areas of Charlottenburg and Schöneberg. Rents in this area can be quite cheap while buildings and the environment can vary widely.

With property rental rates for most of the properties in the borough lower than the Berlin average it is one of three boroughs in the city still showing a decline in rents. However, the decline has generally been slowing and these decreases may have already been arrested.
On a local neighborhood basis there are two distinctly different dynamics at play in Neukölln. Within specific local areas with good infrastructure, well developed local resources and no major social problems the evidence is that there has been some increase in rental rates.
Property market conditions have improved most outside the built up areas in the north with the best conditions in the local neighborhoods of Britz, Buckow and Rudow. As of yet there is little sign of increases in the level of new build within the borough. Neukölln is one of the few areas of Berlin where there are significant social issues as demonstrated by the recent introduction of private security guards to protect pupils at one of the schools in the Borough.
A detailed discussion on the range of properties in Berlin and issues relating to renovation and re-development is available in the Property Types section.

(Anecdotal based rather than data based). Without any planned major re-development in the borough Neukölln will probably remain a market follower rather than a market leader. Continued growth of property prices in other areas of Berlin should be reflected in overall increases within the borough. As in other market following areas the borough could eventually be a turn-around play, in the meantime it will remain more a speculative investment for the risk tolerant investor who spots a particular opportunity.
The recent increases in property prices while rents have remained static show investors have been steadily buying into the property market here as investors are forced to accept lower rental yield. The owner occupancy rate, which is probably highest in the outlying districts, should help maintain prices in these areas.
The recent negative publicity about Neukölln could have a negative effect on the market in the region with a possible "Neukölln Stigma" putting off foreign investors. Finance institutions tend to limit the levels of funding available for large investments in the borough due to its "Has some troublesome areas" tag.
On a more positive point in the last year there has been a great interest in the Neukölln district from students, younger residents and the artistic community which has created a new underground nightlife in the area. Increasing rents in the more established "Hip" areas look likely to maintain this exodus with parts of northern Neukölln and Friedrichshain the main beneficiaries. Within these newly developed "in" areas of the borough rents should rise and the vacancy rate should quickly fall. Northern Neukölln benefits from the rent disparity with adjacent Kreuzberg resulting in many residents basing themselves in the cheaper neighborhoods of northern Neukölln while using the better resourced neighborhoods in nearby Kreuzberg as their social scene.
With an "Owner Occupancy" rate of approximately 12% the borough has close to the average rate for all of Berlin (13 %) which is a little bit of a surprise bearing in mind all the issues already discussed. For more information on "Owner Occupancy Rates" and other general analysis data visit our Graphs of Economic Performance page.

Schloss Britz. A Prussian manor house dating from the 18th century is one of the finest stately homes in the greater Berlin area. Its historic rooms have late 19th Century decor and is currently used as a venue for exhibitions, concerts and meetings.

Volkspark Hasenheide is a recreational area with heather and rose gardens. At the south entrance to the park are re-constructed samples of gymnastic apparatus's which copy the originals built by Jahn-Denkmal Hasenheide in the 19th century for the Berlin youth of the time.
Summer-bath Neukölln Columbiabad is an outdoor pool complex with diving boards, water slides and a children's playground. Located at Columbiadamm 160. Stadtbad Neukoln is a restored "Roman Style" swimming and thermal bath, it has a magnificent stained-glass skylight lighting the circular central area. The bath is renowned for its "Nude Midnight Bathing Experience" on the last Friday of the month.
The Islamic cemetery (Islamischer oder Türkischer Friedhof ) on Columbiadamm opened in 1866 by the German Emperor. With graves dating back to the 17th century (relocated to the cemetery at a later date) designed to commemorate ambassadors and high ranking officials from the Ottoman Empire. Quite a small cemetery considering the size of Berlin's Turkish community, a large new mosque is being built here.
Small local art galleries in Neukolln include, Creativ-Centrum Neuköllner Leuchtturm, Emser Str. 117. Galerie and artshop of AJ Jaskula, Selke Str. 17 Galerie im Körnerpark Schierker Str. 8, art t27. Thomas Str 27.
There is an interesting Turkish Market by the canal at Maybachufer on Tuesday and Friday afternoons. The Puppet Theatre-Museum, which was initially a "Mobile Puppet Theatre" but now has a permanent base in Karl-Marx-Strasse 135.

Neukölln, Britz, Buckow, Rudow and Gropiusstadt.

Neukölln has samples of all segments of society and housing classes in Berlin. The borough has a large immigrant population dating from the first wave of immigration during partition with most of these of Turkish decent. There is a large proportion of social housing in the borough. Within this there are pockets of high income households, hip local artistic communities and large areas of both lower and middle income households. The "New Build" replacement rate in the borough is close to zero indicating a complete absence of new build in the borough. The proportion of residents in receipt of housing allowance at over 14% is nearly double the Berlin average of 8% and more than 20% of residents are defined as foreigners. The tables below give an indication how the borough has performed in comparison with the overall Berlin property market. For further information on the dynamics of the overall market in Berlin refer to our Market Dynamics web page.
The cost of new rental contracts in Neukölln has increased slowly since 2006 from 5.0 €/m2 to 5.3 €/m2, however this steady increase appears to have stopped in 2008 as has been the case in much of Berlin. The current cost of new rental contracts remains over 0.5 €/m2 below the city average at 5.9 €/m2. While the borough has suffered from quite a lot of negative publicity in recent times with some areas having significant social problems it still remains a very popular area to live in. Vacancy rates for the borough remain relatively low at 4.5%, slightly below the average for Berlin. The borough has an owner-occupancy rate close to the average for Berlin at nearly 13%.
Yield in the borough had decreased in 2006 and 2007 however not as much as the rest of Berlin and had stabilised close to the Berlin average at the end of 2007. In 2008 even with the costs of new rental contracts stationary yield has increased quite dramatically, this is mostly attributable to the decrease in the average costs of property being sold. As seen in many other parts of the city with less international investors buying there has been a significant change in the mix of properties being sold with cheaper poorer quality properties dominating the sales mix in the borough. Currently, the average yield based on property costs and new rental contract costs within the borough is nearly 7%, almost 1.0 % above the Berlin average.
Neukölln could well prove to be one of the success stories for investors in the short to medium term as if benefits from strong demand while also benefiting from two strong drivers at opposite ends of the borough. First, the closure of Tempelhof Airport in the north of the borough will remove the blight of noisy flight paths in the large residential areas adjacent to the airport and its change of use should provide employment and business opportunities. Secondly, in the south of the borough at the city boundary the newly designated Berlin Brandenburg International (BBI) Airport in Schoenefeld will provide good employment opportunities both during the construction phase and on a continuing basis after it opens at full capacity.
