Buying real estate in Neukölln?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

Is buying a property in Neukölln a good investment?

Last updated on 

property investment Berlin

Yes, the analysis of Berlin's property market is included in our pack

If you've enjoyed the diverse culture and creative vibes of Neukölln, you might contemplate making it your next destination for property investment in Berlin.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Germany, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Neukölln?

Neukölln in Berlin has emerged as a highly sought-after location for property buyers, and there are several reasons why this is the case.

When exploring what makes Neukölln stand out, it's important to consider its unique attributes compared to other real estate markets, especially within Berlin.

One of the key factors that make Neukölln attractive is its vibrant cultural scene. This area is known for its diverse community, bustling with various cultural events, art scenes, and a lively atmosphere that appeals to many, especially younger crowds and creative professionals.

This diverse and dynamic environment is somewhat distinct compared to more traditional and quieter neighborhoods in Berlin.

Another aspect is the affordability of Neukölln. Historically, it has been one of the more affordable areas in Berlin, attracting those who are entering the property market for the first time or looking for more value for their money.

This affordability, coupled with the ongoing development and gentrification, makes it a promising area for investment. This trend of gentrification began to pick up pace in the early 2000s and has steadily transformed the area, attracting more interest from buyers and investors.

In comparison to other areas in Berlin, Neukölln offers a unique blend of urban living with a sense of community.

While areas like Mitte or Charlottenburg might boast more upscale amenities and a more polished urban environment, Neukölln attracts people who appreciate a more grassroots, authentic urban experience.

The type of people attracted to Neukölln are diverse. From young professionals and artists to students and young families, the area's appeal cuts across various demographics. This mix adds to the area's vibrant and eclectic charm.

However, it's crucial to also consider some potential drawbacks. As Neukölln becomes more popular and undergoes gentrification, there's the risk of losing its original character, which is part of its current appeal.

Rising property prices and living costs could also make the area less accessible to the very people who contributed to its vibrant culture.

Additionally, as with any rapidly developing area, there may be concerns about the pace of infrastructure development keeping up with the growing population.

In terms of whether Neukölln will remain a hype, it's a mixed bag. On one hand, its cultural vibrancy and ongoing development suggest that its popularity is not just a passing trend.

However, as prices rise and the area changes, it might lose some of its original appeal, which could impact its attractiveness in the long run.

Make a profitable investment in Berlin

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Berlin

Why is Neukölln a nice place to live?

Neukölln has become increasingly popular as a place to live, and there are several reasons for this.

The area is known for its unique lifestyle and culture, which is a major draw for many people.

The lifestyle in Neukölln is often described as vibrant and diverse. It's a melting pot of cultures, which is reflected in its various shops, cafes, and restaurants, offering a wide range of international cuisines. This multicultural environment makes it particularly attractive to people who enjoy a lively urban atmosphere.

Regarding the expat community, Neukölln is home to a significant number of expatriates. This has contributed to the area's cosmopolitan feel. There are numerous language cafes, international meetups, and cultural events that cater to the expat population, making it easier for newcomers to integrate and feel at home.

In terms of living costs, Neukölln was once considered one of the more affordable areas in Berlin. However, with its rising popularity, the cost of living has been increasing, although it still remains relatively reasonable compared to more central districts like Mitte or Charlottenburg.

Safety is a concern everywhere, and Neukölln is no exception. Like many urban areas, it has its share of petty crime, but generally, it's considered a safe place to live. It's always advisable to be cautious and aware of your surroundings, especially at night.

Neukölln offers a good range of amenities and facilities. For education, there are several schools, including the Campus Rütli and the Neukölln High School.

Healthcare facilities are also adequate, with hospitals like the Vivantes Klinikum Neukölln providing medical services. For shopping and leisure, the Neukölln Arcaden is a popular destination, housing various shops and a cinema.

The quality of infrastructure in Neukölln is quite good. The roads are well-maintained, and utilities are generally reliable. Internet connectivity is robust, which is important for residents, particularly the younger and tech-savvy crowd.

Accessibility is one of Neukölln's strong points. It's well-connected to other parts of Berlin, making commuting relatively easy.

The public transportation options are excellent, with numerous bus lines, the U-Bahn (underground train), and the S-Bahn (suburban train) servicing the area. This network makes it easy to reach other parts of the city, as well as major transport hubs like airports.

How much does it cost to buy real estate in Neukölln?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Germany.

Buying a property in Neukölln can vary significantly in cost depending on several factors including the type of property, its location within the district, and current market trends.

In Neukölln, the types of residential properties primarily include apartments, which range from old building apartments (Altbau) with their classic charm to newer, modern apartments. Houses and luxury villas are less common in this urban and densely populated area.

Apartments, particularly those in well-maintained Altbau buildings, are in high demand. They offer a blend of historical charm and urban living, appealing to a wide range of buyers, from young professionals to families.

The real estate market in Neukölln consists of both new developments and resale properties. In recent years, there has been an increase in new development projects, adding modern living spaces to the area.

However, resale properties, especially those in older buildings, remain highly sought after due to their unique characteristics and often more central locations.

The price range for properties in Neukölln varies. The prices per square meter can range from approximately €3,500 to over €7,000, depending on the property's age, condition, and exact location.

It's important to note that property values in Neukölln have been on the rise over the past few years. This increase is attributed to the area's growing popularity, ongoing urban development, and general real estate trends in Berlin.

Looking at upcoming developments and city planning changes, several projects could potentially impact property values in Neukölln. New residential and commercial developments, improvements in public transportation, and urban renewal projects can make the area more attractive, thereby driving up property prices.

Predictions for the real estate market in Neukölln in the coming years suggest a continued interest in the area, potentially leading to further increases in property values.

Factors that could indicate a potential increase in value include ongoing urban development, improvements in infrastructure, and the area's growing popularity among both locals and expatriates.

Where is the best area to buy a property in Neukölln?

When considering the best area to buy a property in Neukölln, it's important to recognize that different parts of this district offer varied atmospheres, property types, and price ranges.

Neukölln is a diverse district, with each area having its unique appeal and characteristics.

One notable area in Neukölln is the vicinity around Hermannplatz. This area is known for its vibrant urban life, with a plethora of shops, cafes, and cultural venues. The properties here are mostly apartments, including many Altbau (old building) styles.

These apartments combine historical charm with urban living, making them quite popular. Due to their popularity and central location, prices in this area can be relatively high.

Another area worth considering is the Nord-Neukölln, particularly around the Weserstraße and Richardplatz. This part of Neukölln has a more laid-back, bohemian vibe, attracting a lot of young professionals and artists.

The properties here are a mix of old and new, with many charming Altbau apartments. The prices in Nord-Neukölln are slightly more affordable than around Hermannplatz but have been rising due to the area's increasing popularity.

An up-and-coming area within Neukölln is the southern part, around the Britz and Buckow neighborhoods. These areas are less central and have a more residential and quieter feel. Here, you can find more spacious apartments and sometimes even small houses.

The prices in Britz and Buckow are generally lower than in the more central parts of Neukölln, offering good value for those willing to be slightly further from the hustle and bustle.

When looking for a property, areas like Reuterkiez and Schillerkiez are also worth exploring. These neighborhoods have a strong community feel, with plenty of local amenities and green spaces like Tempelhofer Feld nearby. They strike a balance between lively urban life and a sense of community.

On the contrary, certain areas in Neukölln might be less advisable for property buyers. Areas closer to the outskirts of the district, like Gropiusstadt, are dominated by large housing estates and lack the characteristic charm of central Neukölln.

While prices here might be lower, these areas do not offer the same lifestyle or investment potential as the more central neighborhoods.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Germany.

Area Atmosphere Property Types Price Range Remarks
Hermannplatz Vibrant urban life Apartments, mostly Altbau Relatively high Central location, popular
Nord-Neukölln (Weserstraße, Richardplatz) Laid-back, bohemian Mix of old and new apartments Moderate to high Attracts young professionals, artists
Britz and Buckow Residential, quieter Spacious apartments, small houses Lower Less central, up-and-coming
Reuterkiez and Schillerkiez Community feel, green spaces Varied, with many local amenities Varies Near Tempelhofer Feld, balanced lifestyle
Gropiusstadt Suburban, large housing estates Large apartment blocks Lower Lacks central Neukölln charm

Don't lose money on your property in Berlin

100% of people who have lost money in Germany have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

invest real estate in Berlin

Is there a strong rental demand in Neukölln?

There is a strong rental demand in Neukölln and understanding its dynamics is crucial for anyone considering investing in rental properties in the area.

Firstly, the demand in Neukölln encompasses both short-term and long-term rentals, but the nature of this demand varies. Short-term rentals are popular, especially among tourists and visitors, due to Neukölln's vibrant culture and nightlife.

However, the long-term rental market is particularly robust, driven by a steady influx of residents drawn to the area's lifestyle and employment opportunities.

The target demographic for rentals in Neukölln is quite diverse. It includes young professionals, artists, students, and expatriates. These groups are attracted to the area's dynamic cultural scene, its relative affordability compared to other Berlin neighborhoods, and its accessibility.

Young professionals and expatriates often look for modern, well-equipped apartments, preferably in areas with a vibrant social scene, like around Hermannplatz or in Nord-Neukölln. Students and artists, on the other hand, might prioritize affordability and may opt for shared apartments or smaller studios.

When it comes to the type of properties in demand, there's a clear preference for apartments - both Altbau (characteristic old buildings) and newer constructions. Apartments that blend modern amenities with the charm of the Altbau style are particularly sought after.

In terms of specific areas, the neighborhoods around Weserstraße, Richardplatz, and Reuterkiez are highly favored due to their lively atmosphere and proximity to local amenities.

In terms of amenities that can help reduce vacancy, properties that offer fast internet, modern kitchens and bathrooms, and proximity to public transport are highly attractive.

Additionally, being close to green spaces like parks, shopping areas, and cultural hotspots can also be a significant draw.

Regarding potential returns on investment, rental properties in Neukölln can be quite lucrative. While specific numbers can fluctuate, investors can expect competitive rental yields, potentially higher than in more established neighborhoods in Berlin. This is due to the rising popularity of the area, which continues to attract a diverse tenant base.

Finally, the type of properties that are seeing increasing demand and could potentially yield better returns are those located in up-and-coming parts of Neukölln, like the southern neighborhoods of Britz and Buckow, which offer more space and are becoming increasingly popular.

Apartments that combine modern amenities with unique features, such as balconies or access to communal gardens, are also in high demand.

Make sure you understand the real estate market in Berlin

Don't rush into buying the wrong property in Germany. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Berlin

Is it easy to buy a property as foreigner in Neukölln?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Germany.

Buying a property in Neukölln, Berlin, as a foreigner is relatively straightforward, as Germany does not impose many restrictions on foreign property buyers.

However, being aware of the process, potential risks, and common pitfalls is essential for a smooth transaction.

Firstly, there are no specific regulations or restrictions for foreign buyers in Germany. This means that foreigners have the same rights as locals when it comes to purchasing property.

The buying process in Neukölln is similar to other parts of Berlin and generally involves finding a property, making an offer, signing a notarized sale contract, and then completing the purchase with the payment and registration of the property.

One primary risk associated with property investment in Neukölln is the potential for fluctuating property values, as with any real estate investment. The market can be influenced by various factors, including economic conditions and changes in local regulations, such as rent control laws.

A classic pitfall for foreign buyers in Germany is navigating the legal and financial aspects of the purchase without sufficient knowledge of local practices and regulations.

For instance, the additional costs associated with buying property, such as the notary fees, real estate transfer tax, and possible commission fees, can add up to a significant amount and should be factored into the overall budget.

Working with a local real estate agent or lawyer is highly advisable, especially for foreigners who might not be familiar with the German real estate market or fluent in German.

A local expert can provide valuable insights into the specificities of the Neukölln market, assist with the legal aspects of the transaction, and help navigate the bureaucratic process.

Common exit strategies for property investors in Neukölln include selling the property after a period of value appreciation or renting it out for a steady income stream. The rental market in Neukölln is strong, which makes renting out an attractive option.

However, investors should be aware of the local regulations regarding rentals, especially if considering short-term vacation rentals, as Berlin has specific rules to address housing shortages.

Make a profitable investment in Berlin

Better information leads to better decisions. Save time and money. Download our guide.

buying property in Berlin

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.