Berlin is a city that has seen incredible growth over the past few years. However, this growth has come with a high cost: skyrocketing rental prices. According to a recent report by Guttman Real Estate, the median rent for residential housing built up to 2015 in Berlin is around €14.35 per square meter, which represents a development of around 14.40% in just 12 months. This is an alarming trend that has led to many prospective buyers wondering if they should wait for a market correction before making a purchase.

However, according to Nick Mulder, the founder of Hypofriend, waiting for a market correction may not be the best course of action. Mulder notes that the total number of offers in Berlin has decreased, likely due to the city’s difficult building regulations. This lack of supply, coupled with increasing demand, has led to a steady increase in both rent and property prices.

Mulder advises buyers to act fast, as he does not see a major market correction coming in the near future. Instead, buyers should focus on finding well-priced deals and negotiating with nervous sellers. In some cases, buyers can negotiate up to 10% off the property price.

As a landlord, Mulder is currently renting out his new build property for under €16 per square meter, and he hasn’t changed the price in three years. However, he expects many landlords to raise prices in 2023 to compensate for higher costs and upcoming financing, which will only increase the upward pressure on rents and prices.

Overall, Mulder’s advice to prospective buyers is to act quickly and focus on finding the right property at the right price. While waiting for a market correction may seem like a good idea, the reality is that prices and interest rates are likely to continue to rise, making it more difficult for buyers to get a good deal in the future. As such, it may be wise to take advantage of the current market conditions before it’s too late.

Hypofriend’s careers page is here.