Anyone who has ever taken a walk through Berlin's Mitte district will know why it draws so many people from all around the world. No other part of Berlin has quite the same colorful metropolitan flair: Designer labels and galleries cluster on one corner, magnificent buildings and monuments recall the city's momentous history on another, and numerous restaurants and cafés fulfill every conceivable culinary wish in between. Given this variety, it is hardly surprising that Mitte is at the very top of the wish list for many seeking a home in the city. According to the Housing Market Report Berlin 2016, published by Berlin Hyp bank, the district's population grew by 8,400 in 2014 – an increase of 2.4 percent.
Mitte's popularity with would-be tenants is reflected in rental prices in the district. Last year, monthly asking rents in Mitte increased by 7.0 percent to an average of 10.70 euros per square meter. This compares with a Berlin-wide average increase in 2015 of 5.1 percent. Second and third places went to Friedrichshain-Kreuzberg and Reinickendorf, each of which saw increases of 5.9 percent.
But when it comes to rental price trends, it is Mitte that holds the city's number one spot. Monthly rents increased significantly at the higher end of the market in particular, rising by 9 percent over the previous year to 18 euros per square meter. This clearly shows that the historical Mitte district continues to be one of Berlin's top residential areas.
And it's not just the population growth and rent increases in Mitte that put it ahead of Berlin's other districts: it also has the edge in terms of construction activity. Nowhere else in Berlin were so many apartments approved and completed last year. Prices also grew strongly over the year. In 2015, an apartment in Mitte cost almost 4000 euros per square meter – 7.6 percent more than the previous year. Here too, growth was particularly strong at the higher end of the market: buyers in this segment paid almost 7000 euros per square – up 12.5 percent year on year.