Language
DEEN
Market analysis··2 min read

Ancillary costs in Berlin: Study confirms top position, RDM calls for cap

A recent international study by the Deutsche Bank Research Institute ranks Berlin first worldwide for monthly basic utility costs for residential properties, prompting the Ring Deutscher Makler (RDM) Berlin and Brandenburg e.V. regional association to demand a cap on ancillary costs.

AI generatedAncillary costs in Berlin: Study confirms top position, RDM calls for cap – AI-generated illustrative image
Ancillary costs in Berlin: Study confirms top position, RDM calls for cap. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The discussion surrounding the development of residential rents in Berlin has been dominated for years by political instruments such as the rent cap or the rent brake. These measures aim to regulate the agreement of market-rate rents by private landlords and to curb general rent development. A recently published international study now draws attention to another aspect of housing costs where Berlin holds a top position: ongoing ancillary costs.

The study "Mapping the World’s Prices – 20261" by the Deutsche Bank Research Institute analysed the monthly basic utility costs for an 85-square-metre flat worldwide. Berlin takes first place in this survey. The determined costs for electricity, heating, cooling, water, and waste amount to USD 410 per month. Berlin's ancillary costs thus exceed those in metropolises such as Tel Aviv, Oslo, and even London, where, for example, USD 383 were registered, corresponding to fourth place.

The development of these costs is remarkable. In 2012, the aforementioned expenses in Berlin were still USD 141. The current survey of USD 410 thus represents an almost threefold increase within just over a decade. This development prompts the Ring Deutscher Makler (RDM) Berlin and Brandenburg e.V. regional association to take a clear stance. The association calls on the State of Berlin to actively contribute to relieving tenants and to introduce a cap on ancillary costs for state-mandated, regulated, or significantly influenced housing costs.

Markus Gruhn, Chairman of the RDM, commented on the situation, stating that Berlin is the "ancillary cost world champion". He pointed out that politicians have been setting guidelines for appropriate rents for years, while a different development can be observed for costs that the state itself sets or influences. The RDM chairman suggested that the standards applied to private landlords should also be applied to housing costs influenced by the State of Berlin itself.

The RDM identifies various areas in which the State of Berlin can directly influence housing costs. These include the setting of property tax and the management of the water utilities, the Berliner Stadtreinigungsbetriebe (BSR) and the Berliner Energie und Wasserbetriebe (BEW), which are state-owned. For items such as water, wastewater, waste disposal, street cleaning, and heating, the state thus bears its own responsibility for cost development. Concrete intervention in these areas could bring noticeable relief for Berlin tenants.

Looking for
a real estate
agent?

Michael Freitag — founder of FREITAG® Immobilien
Michael Freitag
Founder of FREITAG® Immobilien GmbH
More than 15 years of experience in Bavaria & surroundings
— FREITAG Immobilien

Your discreet partner for institutional transactions in German-speaking Europe.

As a premium real estate firm based in Munich we advise investors, family offices, developers and long-term holders on the acquisition, sale and valuation of residential, income and commercial properties — confidential, close to the market and on equal terms.

3.600+
municipalities on our market radar
48 h
first assessment of your property
Off-market
discreet circle of buyers
DACH
DE · AT · CH
— Confidential contact

Let us talk about your portfolio.

Acquisition profiles, off-market opportunities, valuations or development enquiries — we reply personally within 24 hours, NDA as a matter of course.

Phone
+49 (0) 89 158 90 140
Email
E-Mail anzeigen
Office
Munich
More news