What advantages does Berlin's neighboring city offer? And what are the benefits of buying a property in Potsdam as a capital investment? You can find helpful information about population and real estate market development in Potsdam here.
Potsdam is primarily famous for its palaces, parks, and lake landscapes. But the city has much more to offer. Over the past decades, it has developed into a major science center with five universities and more than 40 research institutes. Also, various companies from the future-oriented ICT, media, and life science industries have settled here.
Accordingly, Potsdam is experiencing constant population growth – 10.5 percent in the past five years alone. Current studies predict continued strong growth for the future. While the number of inhabitants was around 180,000 in 2019, it is expected to reach 184,500 in 2020 and about 220,000 in 2035.
The positive population development is also noticeable in the housing market. The demand for modern, well-equipped living space near the city center is growing continuously – and so are the rents:
Rental price development
Front-runners are the popular quarters like Berliner Vorstadt (Berlin Suburb), Bornstedter Feld (Bornstedt Field), or Nördliche Innenstadt (Northern City Center). On average, the square meter here costs over 13 euros. In more distant neighborhoods such as Drewitz or Eiche, the rents are correspondingly somewhat cheaper.
Südliche Innenstadt (Southern City Center) is an attractive alternative for all those who keep within a specific budget and still want to buy an apartment close to the center and the Havel river. This neighborhood is currently undergoing a process of change. For example, the Speicherstadt, a modern city quarter with a successful mix of new and renovated, listed buildings, is being realized amid the Havel's historically marked surroundings.
The amendment to the German Tenancy Act, or the so-called “rental brake”, has been in force in Berlin since 2015. It states that rents for new leases in sought-after areas may only be a maximum of ten percent above the local comparative rent.
In Potsdam, however, this regulation does not apply. Against the background of the continually rising supply rents, you have a clear advantage when renting out your property.
The purchase of a property in Potsdam represents a worthwhile investment in the long term. With the steady growth of Berlin and its suburbs and neighboring cities, Potsdam is also gaining importance. The strong population growth is expected to continue in the coming years, and demand on the housing market will remain consistently high.
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Supply and demand
Rental price development