Berlin – the German capital has changed significantly over the past three decades. During the Second World War, most of the stately residential buildings from the Wilhelminian era fell victim to the bombs. During the GDR era, most of the houses were inhabited but fell into increasing disrepair, especially in the eastern part of the city. Gray facades and peeling plaster characterized the cityscape.
But with the fall of the Berlin Wall, Berlin awoke from its slumber. Hardly any other city in Germany has changed as much in the last thirty years as Berlin, the city of artists.
The German capital has always been known for its free spirit, artists and thinkers. A city where opposites meet and become an authentic mix of cultures, world views and ideas. Most of the old buildings have been extensively renovated in recent years. Large sums of money have been invested in the residential buildings to freshen up the ageing building fabric, lay new water pipes, sand floors, replace windows and restore facades.
The metropolis is shining in new splendor, which makes the real estate market attractive, but also causes prices to rise at a rapid pace.
Find out from us in which Berlin districts you can buy a renovated apartment, what advantages an apartment in an old building brings with it and what challenges you will face.
What is a refurbished condominium? - Definition & meaning
A renovated or modernized apartment is an existing apartment that has been adapted to the latest living standards through renovation and refurbishment work.
In older residential buildings, the water pipes, power lines and windows cannot keep up with today’s requirements. They are dilapidated, there are leaks in the water pipes, draughty windows or short circuits. These are all sources of danger that can damage both the fabric of the building and the occupants of the home. Renovation work is carried out to prevent accidents or other unwanted incidents such as water damage. The pipes are re-routed and old windows are replaced with new windows that are characterized by their high energy efficiency.
Refurbishment involves adapting the apartment to the latest standards instead of returning it to its original new condition. In addition to functional elements, attention is also paid to high-quality fittings and other areas of the interior design. The wooden floors are either replaced with a comparable material or refurbished by sanding and painting.
Advantages of buying a renovated apartment
Anyone looking to buy an apartment in an old building appreciates first-class materials, a solid building structure, mullioned windows, high ceilings, stucco decorations and wooden floors.
Even though numerous Berlin apartment buildings have been renovated in recent years, it is still possible to buy an unrenovated apartment in an old building. However, the materials used for water pipes, electricity lines, pipes and other parts of the apartment no longer meet the latest living standards. You can expect to have to invest a lot of money in the renovation of such an apartment in the near future. What’s more, at the time of purchase you can estimate what renovation work you will have to do. However, you cannot be certain.
There are several reasons why we advise you to buy an apartment in an old building that has already been renovated:
- Modern design: Even if the special features of an old apartment, including high ceilings, stucco decorations, wooden floors and other details, are retained, a modern design is used during the renovation. A perfect interplay of tradition and modernity is created so that the old apartment shines in a new light.
- Sustainability: When replacing materials, attention is paid to high-quality products. These are durable and will continue to function perfectly for years to come. Only what is actually outdated or damaged is replaced. The new materials are significantly more environmentally friendly than those that were used a few decades ago. In this way, the aspect of sustainability is also taken into account.
- Increase in value: A condominium should increase in value when it is resold. If you are considering the property as an investment, this feature is extremely important. But even if you will be living in the apartment yourself, you should not neglect this aspect in your considerations.
- Low maintenance costs: If you buy a newly renovated or refurbished old apartment, you can be sure that you won’t have to face high maintenance costs in the near future. This means you can plan much more accurately and use your financial resources elsewhere.
- High energy efficiency: In terms of future costs, the energy efficiency of a home plays a major role. Properties in older buildings are initially known for draughty windows, leaky doors and other problems. But with completely renovated apartments, you don’t have to worry about this. The windows and all seals comply with modern standards and help your renovated apartment in the heart of Berlin to achieve an excellent result for the energy performance certificate.
The best districts in Berlin for buying renovated apartments
Even though the city center of Berlin was extensively bombed during the Second World War, many of the beautiful residential buildings from the Wilhelminian era were subsequently rebuilt and renovated. This is why districts and neighborhoods such as Berlin Mitte, Friedrichshain, Kreuzberg and Charlottenburg are particularly suitable for finding the perfect apartment in an old building.
The Prenzlauer Berg district is particularly popular with families. The district is not quite as touristy as others, but has many cafés, restaurants, small stores and playgrounds. Here you can go out for ice cream, meet up with friends in a Späti in the evening and browse for authentic products in small stores. Rents are high, which is why a condominium in Prenzlauer Berg is very easy to rent out. Even if the purchase prices for such an old apartment in this preferred location have exploded in recent years, an increase in value is to be expected.
The most central location is without question Berlin Mitte. The range of leisure activities on offer is huge, as there are numerous museums, cinemas, theaters and other attractions in addition to the tourist sights. The government buildings dominate the cityscape. In between are beautiful residential buildings with condominiums that are reminiscent of long-forgotten times with magnificent facades and high ceilings. The apartments have now been adapted to modern living standards and are both functional and aesthetically pleasing. It is no wonder that the apartments in this part of the city are in high demand and you sometimes have to wait a long time for the right property, even if the prices for renovated apartments in this part of Berlin are high.
If you are looking for a newly renovated apartment in a hip district of Berlin, you should definitely look for a property in Berlin Kreuzberg. In Kreuzberg, you can party late into the night, meet up with friends and round off the balmy summer evenings with beer and cocktails. Life in Kreuzberg is characterized by the clash of different cultures. Pubs, clubs and restaurants are lined up one after the other and offer delicious dishes, sparkling drinks and varied beats. Young people, artists and students are drawn to the colorful neighborhood, which even late at night proves why Berlin is known as the never-sleeping metropolis. Berlin Kreuzberg has also become increasingly popular as a residential area in recent years. The housing market is highly competitive and you can only find a perfectly renovated apartment in an old building with the right support from a team of experts.
Friedrichshain should of course not be missing from our list of the most popular neighborhoods for renovated old properties in the center of Berlin. The district is located very close to Prenzlauer Berg and, with its extensive green spaces, is ideal for long walks, outdoor activities and picnics with the family. Berliners are particularly drawn to Friedrichshain on warm summer days. Here you can enjoy the sunshine to the full. Tourists and people who are passionate about history and art visit the East Side Gallery at the Berlin Wall and stroll through the district to soak up the lifestyle of this neighborhood. Anyone who finds a renovated apartment in an old building in Friedrichshain can count themselves lucky. The properties are highly sought-after and, despite a high purchase price, a steady increase in value is expected.
Costs and financing of renovated condominiums: What is there to consider?
Buying a newly renovated apartment in an old building in the heart of Berlin involves a great deal of financial outlay. On an organizational level alone, there are many things to consider. To ensure that the property can be used sensibly in the long term and used as an investment, several aspects must be taken into account when buying. A renovated apartment in an old building has different requirements than a newly built apartment. You need to be prepared for this. There are certain parameters that will help you to calculate a sensible purchase price. After all, you want to achieve a positive return on your investment in the center of Berlin. The following thoughts arise in connection with financing a renovated condominium:
- High purchase price: The purchase price is made up of various factors, including the location, the building fabric and the infrastructure of the residential area. In the case of a renovated apartment, it should be noted that large sums of money have already been invested in the modernization and renovation of the property. The seller will therefore set the price significantly higher than that of an unrenovated old apartment in the same location.
- Additional costs: The additional costs are no different from those you will incur when buying a new-build apartment or a detached house. In addition to the notary fees, the estate agent’s commission and the fees for entry in the land register, you will also have to pay land transfer tax.
There are also aspects of financing that need to be considered and analyzed in detail for every property purchase. If you draw up a detailed cost plan, include the current interest rates in the calculations, make use of state subsidies, take into account the formation of reserves and consider ongoing maintenance costs, then you can build up solid financing that provides sufficient security even in the event of unforeseen challenges.
The more equity you contribute, the more favorable conditions you can negotiate with the bank for the loan. The term of the loan also plays a role. In a personal consultation, we can provide you with detailed information about the various aspects that need to be taken into account when financing a renovated apartment in an old building in Berlin. Based on all these parameters, you can calculate how much a renovated apartment may cost you.
Tips for buying a renovated apartment
If you are thinking about buying a property, you must always make sure you have a thorough inspection. This is particularly important for a renovated old apartment. That’s why we recommend consulting a specialist.
You need to be sure that the refurbishment measures meet the highest quality standards. For example, if it is a renovated apartment with a balcony, the construction of the balcony must also be checked. In many cases, the refurbishment work was carried out step by step over a long period of time. Ask to see the building permits and draw up a schedule of the individual modernizations. Are you likely to be faced with further refurbishment work in the near future?
It is best to commission a team of estate agents to carry out a survey and check the legal aspects. Notarial contracts, ownership structures and other matters must be clearly clarified so that you can make your investment without hesitation. Buying a renovated condominium is a future-oriented investment with great potential for success if you pay attention to every last detail when buying.
Pitfalls and challenges when buying a renovated condominium
The following factors should be considered when viewing a property so that you can purchase a renovated old apartment in Berlin without any problems:
- Price: The seller may exaggerate the value of the refurbishment in order to achieve a higher selling price. Check the individual modernization works for their costs and impact on the price of the property.
- Quality: Sometimes materials are used in the refurbishment that cannot meet your requirements on closer inspection. To avoid unpleasant surprises, the quality of the individual modernization works must be checked.
- Market overheating: Berlin’s real estate market is hotly contested. Most apartments are not even advertised publicly because a suitable buyer has already been found in advance. However, the pressure must not affect your personal decision. Otherwise, you may end up buying a renovated apartment at an overpriced price.
- Defects: An expert can find out whether there are hidden defects in the home that are not visible at first glance.
- Documentation: The renovation work must be approved and appropriately documented. It is important to check that complete documentation is available before purchasing.
Conclusion and outlook - is it worth buying a renovated condominium?
The Berlin real estate market has continued to develop in recent years. New construction projects have been implemented on undeveloped plots and old apartments have been extensively renovated. The stately residential buildings that characterize Berlin’s charm have been restored to their former glory. Facades were replastered, leaky windows replaced, wooden floors sanded and old pipes renewed. All these investments are naturally reflected in the prices. In addition, Berlin’s location, infrastructure and high quality of life also influence the real estate market.
If you decide to buy a renovated apartment in Berlin, you can expect a future increase in value despite high purchase prices. The Berlin real estate market is still on the upswing, meaning that investments in investment properties can continue to pay off.
It pays to handle the purchase transaction in cooperation with an estate agent. With professional support, you can hand over many tasks. Your team of estate agents will take care of checking the documents as well as appraising the property, arranging appointments with the notary and other important steps.
Feel free to contact our team and make an appointment for a non-binding initial consultation today!
Frequently asked questions
You will find the right answers to frequently asked questions here:
When is an apartment considered renovated?
In the case of an existing property, the question arises as to when an apartment is considered refurbished. When outdated pipes, leaky windows or defective power lines are replaced through modernization work, this is considered an extensive refurbishment of an apartment. The process is complete when the apartment has been brought up to current living standards.
When or how often do apartments need to be renovated?
The first renovation work on a new-build property is usually due around 10 years after completion of construction. A similar period can also be estimated for old apartments that have been restored to as-new condition through renovation work.
When is a renovated apartment considered to be as good as new?
The existing property is deemed to be as good as new if the apartment has been restored to the condition of a new-build apartment through extensive modernization work.
When do apartments in Berlin have to be renovated to make them more energy efficient?
An energy renovation obligation exists if a residential building was built before February 1, 2002 and subsequently sold. If the refurbishment work has not yet been carried out, the new owner is obliged to have the necessary energy modernization work carried out.
What are the disadvantages of non-renovated apartments in Berlin?
Apartments in older buildings that have not yet been renovated are cheaper to buy. However, high refurbishment costs are to be expected. The main disadvantage is the unpredictability. When buying, you may not know what condition the property is actually in and what modernization work will be necessary. It is not possible to draw up a reliable financing plan on this basis.
