|
Area Residents Unemployment rate Average income Vacancy rates (flats) Flat prices Flat Rents Projected Yield Price Income Ratio Owner Occupancy Rates |
103.07 km² 360,000 13% 1450 euro/month 6.4% 1200-2200 - typical 1520 (€/m²) trend → 5.8 - 6.1 (typical 6.0, up 5%) (€/month) trend ↑ 4.8% 1.05 (€/m² / €/month) 10% (Berlin Average 13%) |
|
The borough of ?Greater Pankow? was formed in the 2001 re-organisation and includes the old boroughs of Pankow (pop 138,000), Prenzlauer Berg (pop 145,000) and Weißensee (pop 77,000) It is the borough with the highest population in Berlin. All of the area of ?Greater Pankow? was within the area known as East Berlin.
The borough is located in the north east of Berlin and stretches from the city centre at ?Mitte? to the rural surrounds of Brandenburg. It is a growing and prospering borough that has the highest birth rate of all the Berlin districts and the highest migration gain, a lot of people are moving here and few are leaving. If Pankow were an independent city, it would be one of the largest in Germany. With a wide diversity in the borough Pankow could also pass as an independent city.
There is something in Pankow for everyone with the hip neighbourhoods in southern Prenzlauer Berg, budget-priced old buildings a little further north, villas around Bürgerpark, and competitively priced owner-occupied residential areas in Rosenthal, Wilhelmsruh or Blankenburg. There are brand-new housing developments in Karow, and beautiful old buildings from the 1920s in Weißensee. All these neighbourhoods are enjoying growing popularity amongst residents and new arrivals to the City.

The borough does not have a single centre around which all the other neighbourhoods have grown, it is more a collection of multiple Kieze areas each with its own micro social scene.
For example as the district of Pankow has its own historic town centre with town hall, an old church and a market square near Breite Str. borough residents living near the lake in Weißensee, or on bustling Schönhauser Allee would hardly ever come here.
The best-known area in Berlin and beyond is hardly ever associated with Pankow, but rather with its sub-district of Prenzlauer Berg. The area around Kollwitzplatz, which, since the fall of the Berlin Wall, has made the most progress and continues to develop as the hottest area in Berlin. The neighbourhood has many advantages, it is close to the city centre and has a distinct feel characterised by creative people, businesses, and young families. It has cultural venues such as the Pfefferberg and Kulturbrauerei, countless restaurants, bars, and clubs that are famous throughout the city. It also has a weekly ?gourmet? market in Kollwitzplatz and its boulevard-sized side streets.
Most of the apartments there are in older buildings, the majority of which have been extensively refurbished over the past 15 years. Because there is hardly any space for larger-scale development projects here, estates such as the owner-occupied residential complex ?Palais Kolle Belle? are characteristic of the area. Here, high-priced new owner-occupied flats are being built behind facades that are meant to bring to mind the Belle Epoque in Paris
The district also offers some minimally refurbished/un-renovated older buildings not far from the most popular locations around Kollwitzplatz. These are preferred by students, artists and low-income households. Roughly one third of the households in Prenzlauer Berg have monthly net earnings of less than 1,100 euros. And yet, there are major improvement projects underway here too, such as the modernisation of the ?Grüne Stadt? (?Green City?) by GSW. This residential area was built in the 1930s and until now, offered a very low standard. After modernisation, the estate will provide a peaceful residential environment almost as tranquil as living in the suburbs, but close to trendy Prenzlauer Berg.


The sub-districts of the old borough of Pankow consist of: Niederschönhausen which is located in the middle of the borough, its built up areas are dominated by old villas and apartment houses. During partition the East German President Wilhelm Pieck lived in an old castle in the district. This is now used to house the Federal Academy for Security Policy (BAKS). Pankow was the home base for most of the East German political class.
Up until 1960 members of the East German government lived in Niederschönhausen centred at the Majakowskiring. Following an uprising in 1960 it was decided to re-locate the members of the East German government so that they could be better protected in the event of an escalation of these problems.
Until 1973 the area around the Majakowskiring was out of bounds to normal citizens of East Berlin.
Wilhelmsruh (pop 9,000) was a key industrial part of Berlin before the war and was mostly destroyed by allied bombing during the war as a result. Following re-unification the rebuilt industrial area quickly closed as East German Industry collapsed, only in the last 10 years with the development of the Industrial Area ?Pankow Gewerbegebiet? has there been an improvement in the economic base in the area. From the mid 90?s a series of new single-and multi-family homes and town houses were built in the district leading to an increase in the population of the district.
Rosenthal in the middle of the borough was an industrial area in pre-war Berlin and the wall was on one of its boundaries. Blankenfelde (pop 2,000) is a quite a large district with a small population which was used for effluent waste disposal from East Berlin until the construction of modern sewerage facilities. Französisch Buchholz (pop 13,000 ) who?s only point of note was the location of an old Horse Racing track here back in the 19th century. Buch (pop 13,000) in the far north of the borough had also handled the disposal of Berlin?s wastewater and sewer facilities until construction of modern sewage treatment plants. There is still residual environmental contamination in the district which has limited the re-use of some land. A leading biotechnology institute "Campus Berlin-Buch." Lies within the district.
Blankenburg is a suburban settlement with a well-preserved village area with surrounding single family homes. On the south eastern edge of the village is part of the campus of the University of Applied Sciences in Berlin (FHTW).

The old Borough of Weissensee is made up of the sub-districts of Weissensee (pop 45,000), Blankenburg (pop 6,500), Heinersdorf (pop 6,500), Stadtrandsiedlung Malchow (pop 1,200) and Karow (pop 17,500).
The north eastern part of the borough, including the sub-districts of Buchholz, Blankenburg, Karow and Buch, is the least populated and furthest from the city centre. It has quiet residential areas dating from the years between the wars with lots of green space, in particular near Lake Weißensee. This is a mostly a working-class neighbourhood with a high percentage of elderly and unemployed residents.

Pankow is growing and growing fast. More and more people are moving into the area and less are leaving. Pankow also has the highest birth rate in Berlin, which is itself experiencing something of a mini baby- boom. For a very large region Pankow benefits from the absence of any major troublesome derelict or neglected areas. While there are some areas that may appear less attractive due to the pre-fabricated developments these have maintained a good residential quality. Pankow itself is a very diverse area from the ?Uber? trendy region of Prenzlauer Berg to the classic older buildings in Weißensee and the new developments in Karow.
In ?Greater Pankow? the percentage of household income spent on housing costs is close to the Berlin average at 230% according to the regional statistics office. However there is a very large spread across the borough with nearly 42% spent by residents in the Senefelder Platz area while only just over 20% is spent in the area around Blankenburger Str. This shows how much of a variety there is in the Borough?s residents and property market.
With the dramatic increase in rents and property prices centred on district of Prenzlauer Berg the other districts north of Prenzlauer Berg have seen a ripple effect with the old town centre of Pankow an area that has particularly benefited. There are some neighbourhoods in the northern districts of Pankow which have pockets of rather characterless buildings which were built since the 80?s however their environment is quite good and they offer a good balance of quality and price.
The area of the borough around Prenzlauer Berg suffered less damage than other more industrial areas during the war so it now still maintains its ?historic feel?. The district of Prenzlauer Berg is now a mostly homogeneous area with quality period buildings, many of which are now protected structures.
With less than 3% of the properties single or two family homes almost all properties are large Multi-Family residential buildings with 30 to 40 apartments. The result is one of the highest densities of population in the city and in the Helmholtz neighbourhood there is a density of over 25,000 inhabitants per square kilometre.
Berlin's working class has been pushed out into surrounding areas by the "alternative scene" which has developed here. The most expensive area?s are around the Kollwitz-Platz and Helmholtz which have attracted both the professional classes and many affluent foreigners. Since the mid 90?s the proportion of foreign residents has almost tripled and is now nearly 15%. The make up of foreigners residing in Prenzlauer Berg is quite different from the immigrant profile of other areas. These are mostly professionals who have relocated to Berlin by choice and based themselves in the area for its cultural scene rather than for any economic benefits.
Development in the area has been split between the restoration of the slowly dwindling number of un-restored Altbau style properties and ?new build? which is viable for the high end owner occupiers who only want to live in Prenzlauer Berg.

A detailed evaluation of the current properties for sale in the heart of Prenzlauer Berg shows the divergence in property prices being asked for ?new build? developments and restored 1900 Altbau Style properties.
Flats in restored Altbau style properties typically range from 1500 euro/m2 to 2000 euro/m2 depending on specification of the restoration. These rates are all based on vacant properties as the variable becomes too much when considering flats already let for long periods of time and anyway are usually not considered as in a fully renovated condition.
New build, typically properties built in the last five years, are currently selling in the same neighbourhood for approximately 3000 euro/m2.
This emphasises how far a traditionally poor area of East Berlin has come on in the last few years and the premium put on new build.
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). Prenzlauer Berg has ridden the early pickup in property prices more then anywhere else in Berlin with the exception of the old Mitte area. As an area with high rental demand it should continue to carry a property price premium when compared with other areas with equivalent rental rates. Low vacancy rates in the south of the borough underpins the rental market here.
The outer sub-districts of the Borough and in particular Buchholz, Blankenburg, Karow and Buch have the biggest potential for residential development in Berlin. There are numerous fields and meadows here, often close to S-Bahn stations and less than half an hour from the city centre. Where previously estates were developed using a multi-storey apartment type of construction in future there will likely be a greater demand for more personal types of building. With a steady market growth in the future the neighbourhoods in this region of Berlin could see major development on the large plots of land that are available for housing construction.
The sub-district of Niederschönhausen is still in the approach path of Tegel airport, but once it closes in 2012, the area is likely to see another strong valuation upwards. The extensive areas with detached houses and individually designed new developments previously used by diplomats working in East Berlin should benefit most by this change of use.


Outside of Prenzlauer Berg due to the below average housing costs and the absence of any troublesome ?no go? areas growth in rents and property prices should be at or above the Berlin average.
With an ?Owner Occupancy? rate of approximately 10% the borough?s rate is less than the average for all of Berlin (13 %) which there has been an large inflow of foreign professionals into the borough most have chosen to rent while the low income levels of a large proportion of the local residents the low rate of ?owner occupancy? is not liable to change in the short term.
High demand with a low propensity to buy has seen some dramatic increases in property sales prices without matching increases in rents. For more information on ?Owner Occupancy Rates? and other general analysis data visit our Graphs of Economic Performance page.

In Prenzlauer Berg the area around the ?Kollwitzplatz? , Pfefferberg and Kulturbraurei contain the most happening area of Berlin. A landmark of Prenzlauer Berg is the former water tower Prenzlauer Berg at the corner of Rykestraße and Knaackstraße, this dates from 1877 and was the first water tower in Berlin. The Rykestrasse Synagogue, Germany's largest synagogue, is located in Prenzlauer Berg.
Buildings of note are the Zeiss Planetarium at the wholesale Prenzlauer Allee built in 1987, Pankower Village church, the former jewish orphanage, now Bibliothekdas City Hall Pankow, the Baroque Kavalier house and the old bakery in Wollankstraße.
The ?KulturBrauerei ? (culture brewery) is one of the main nightlife attractions of Berlin. With its red brick buildings, towers and chimneystacks it resembles an old town setting. The cobblestone pedestrian path flows through the center of the former beer brewery where its many buildings have been filled with bars, restaurants, clubs, galleries and a cinema. It has established a reputation as its own ?Kieze area? and is a great place for party people to hang out.
The weekly gourmet market in Kollwitzplatz is a worthwhile visit and gives a good idea of how the area has developed and the class of local residents.

Prenzlauer Berg, Weißensee, Blankenburg, Heinersdorf, Karow, Stadtrandsiedlung Malchow, Pankow, Blankenfelde, Buch, Französisch Buchholz, Niederschönhausen, Rosenthal, Wilhelmsruh.

Pankow has been the big story in the Berlin property market for many years, the borough has been the area of old "East Berlin" that has appealed most to Berliner's and new immigrants making it the most dynamic property market in the city. There has been a very high rate of "New Build" in the borough ever since re-unification and while the overall rate in the city has dramatically declined in recent years Pankow now accounts for about 25% of the "New Build" in the city. Less than 3% of residents are in receipt of housing allowance compared to the Berlin of 8% and approximately 8% of residents are defined as foreigners. (The profile of foreigners in the borough is quite different from other parts of Berlin as this has been a more recent phenomenon here and consisting of higher skilled international workers who have been attracted to the city making a bee-line to the southern end of the borough at Prenzlaur-Berg). 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.
New rental contract costs in Pankow have improved dramatically over many years until they are now slightly above the average for Berlin, this has occurred following strong rental cost increases pre 2007 led by, and slightly skewed by, the dramatic charge of the district of Prenzlaur-Berg. With relatively low vacancy rates, at approximately 4%, the borough is seen as a good solid area for investment with the attractiveness of the south of the borough spreading north and strong population growth in the borough. The borough has an owner occupancy rate of nearly 10%, just below the Berlin average at 13%. Outside of Prenzlaur-Berg changes in rental costs will continue to govern how the residential property market in the borough performs.
The story with yield in the borough is one of strong price growth in 2006 leading to a sharp decline in yield from the high of over 8% in 2006 to 4.75% by the end of 2007. In 2008 there has been a noticeable increase in the average yield within the borough as prices have dropped back. Relative yield, based upon data for the most recent property sales prices and new rental contract costs, has increased and at 6.65% is now nearly 0.6% above the city average. As elsewhere in the city the reduction in the number of international investors in Berlin has led to a significant change in the mix of properties being sold with cheaper poorer quality properties dominating the sales mix in the borough.
While the boat has sailed for investors looking at fast gains from a turn-around situation all indicators point to good solid returns within the borough and any future return to yield compression will be well reflected in property prices here. There is a wide range of properties in the borough with something for most classes of investors; in particular the south of the borough has established itself as an affluent family friendly district comparable with the best parts of Charlottenburg-Wilmersdorf.
