Rainer Schorr: BER gives rise to soaring prices
The closer the opening of the new Berlin-Brandenburg International Airport comes, the more dynamic the development of land demand and prices in the surrounding region. These are the findings of an analysis commissioned by PRS Family Trust GmbH from Wüest Partner Germany. According to the analysis, the price of building land in the area of the Schönefeld municipality has risen by 60 percent since 2018. Between 2012 and 2018 the increase was only 47 percent.
“The price development makes it clear that after the multiple postponement of the opening of the BER, a large number of investors and project developers were skeptical about the location,” says Rainer Schorr, Managing Director of PRS Family Trust, “It was only with the advent of the Berlin office boom and the completion of the airport, which was reasonably certain to be completed on schedule, that a significant number of projects around Schoenefeld were pushed forward.It is expected that around 85,000 new jobs will be created in the immediate vicinity of the airport”.
The PRS Family Trust has been active at Schoenefeld Airport since 2018 and is developing three larger areas in the BER area. The demand for space comes primarily from the logistics sector and from project developers for airport-related services. “Commercial projects are currently dominating the construction activity. But with the new jobs, the demand for residential real estate will also increase significantly. For the land market, this means further price jumps. We assume that land prices will rise by more than 50 percent by the end of 2021,” says Rainer Schorr, adding: “The rent level will adapt to the inner city locations. Important from Schorr’s point of view is the enormous development potential of land in the region. “In and around Berlin, there are numerous larger areas that are not planned at all or are wrongly planned in terms of building density and types of use. These plots of land must be differentiated according to types of use and developed in close coordination with the communities in order to be usable as building land for the mostly specialized, medium-sized developers. Together with our partners, we are currently preparing around 120 hectares of land around Schönefeld for future development.
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