Due to a lack of interest, no one is relocating to Berlin currently.
In the bustling city of Berlin, moving apartments has become a significant financial burden for many residents. The high demand for housing, coupled with a limited supply, has driven up rent and related costs, making moving apartments in Berlin more expensive compared to other German cities.
According to recent data, moving from a three-room apartment to an older one-room apartment for seniors with a current rent of less than 700 euros could save 136 euros per month, a savings of 21%. However, moving to a new building would cost an additional 151 euros per month, representing a 23% increase, bringing the total cost to over 800 euros.
For single parents with a child, moving to a new building would be twice as expensive as the current rent, totaling over 1300 euros, an increase of 133%.
The housing market in the capital is barely moving, with only 4.6% of rental contracts being canceled each year. This scarcity of alternatives, coupled with high demand, has made Berlin the most expensive city in Germany regarding cost of living.
A couple with two children currently paying around 600 euros net, cold for a three-room apartment, would find moving to a larger apartment significantly exceed their monthly budget if they were to choose a new building, with an additional cost of 988 euros per month, representing a 177% increase.
An analysis by the Investment Bank (IBB) supports this, suggesting that financially, it hardly pays off to downsize in the capital. Interestingly, the analysis also indicates that moving to a new building is more expensive despite shrinking space.
Munich, Hamburg, and Leipzig are all less expensive when moving compared to Berlin. However, the overall moving market dynamics in Berlin—high demand among renters and newcomers, plus limited housing supply—push moving costs specifically upward in Berlin relative to other cities.
Additional factors contributing to the high cost of moving in Berlin include high competition for apartments, requiring quick decisions and often multiple months' rent upfront as deposits. There is also a greater demand for shared flats or smaller units to reduce costs, but with limited availability.
For those considering moving from Berlin to a more affordable city, it's worth noting that 32,419 Berliners have made this choice in recent years. In 2022, a total of 186,222 new Berliners (56,340 Germans, 129,882 foreigners) had to move.
In conclusion, the combination of Berlin’s very tight rental market, rising rents, high demand for housing, and logistical complexities in moving services make moving apartments in Berlin significantly more expensive compared to other German cities. Potential movers should carefully consider these factors and weigh the costs against the potential benefits before making a decision.
Investing in real estate, such as downsizing to a smaller apartment, may not be financially beneficial in the city of Berlin, according to the Investment Bank's analysis. The high demand for housing in Berlin, coupled with a limited supply, has made moving in the city more expensive compared to other cities like Munich, Hamburg, and Leipzig. Moreover, the scarcity of alternatives, high competition for apartments, and logistical complexities in moving services increase the overall cost of moving in Berlin.
