Pankstrasse and Badstrasse under Berlin redevelopement

Goals, procedure and impacts on property owners

In recent years, an increasing number of neighbourhoods have been added to Berlin's redevelopment list (Sanieurungsgebiet) to eliminate urban deficiencies. Berlin-Mitte, Prenzlauer Berg, Neukölln, Friedrichshain-Kreuzberg, Lichtenberg, and Spandau are in the focus. As per 2022, Pankstrasse and Badstrasse in Berlin-Wedding are new considerations to be added to the redevelopment list.

Berlin redevelopment zones

Berlin Redevelopment Zones Image source:

The goal of this initiative is:

  1. Preserving and creating new green and open recreational spots near residential areas.
  2. Matching local facilities with social structure in terms of educational, sports and cultural integration offerings.
  3. Eliminating improper use of residential properties, such as aggressive speculation.
  4. Maintaining and creating options for affordable housing.
  5. Providing modern, efficient and eco-friendly utility infrastructure.

Procedures for property owners in the redevelopment area:

  1. The municipality determines the redevelopment areas, plans, and announces the measures publicly.
  2. A redevelopment note is entered in the land register for the affected properties.
  3. The redevelopment work is executed.
  4. The new land/property values will be determined after the redevelopment has been completed.
  5. Owners might have to compensate, by way of taxes, for the increase in value of their property due to redevelopment. 
  6. After paying the compensation amount, request the deletion of the redevelopment note from the land register.

How does it affect property owners in the redevelopment area?

  1. Private construction and property transactions in the redevelopment area are subject to approval by the Berlin Municipality. 
  2. In the case of a sale, the municipality has the right to approve the sale price for the general welfare.
  3. In redevelopment areas, the municipality has the first right to purchase.
  4. The owners might be compelled to carry out redevelopment in the allotted areas.
  5. Owners might have to pay for the property's value upgrade through taxes.

Extreme case: Expropriation by the municipality In rare cases, if required, the municipality will acquire the private property of owners for redevelopment according to 87 BauGB (two-factor fullfilment)

  1. If expropriation is required for the public benefit.
  2. The applicant (a municipality or redevelopment agency) must have attempted but failed to acquire the property to be expropriated on fair terms. The property must thereafter be used for the purpose for which it was intended to be redeveloped.

We, at TRUST-AGN Holding GmbH, have partnered with many apartment owners in these redevelopment areas to maximise their investment. With our experience in asset management and real estate services, solutions are carefully curated, keeping the client and market risks in mind. Our insight-driven advice can bring you more clarity and the ability to make better-informed decisions. For additional information or advice on this topic please write to us at

Trust AGN Holding GmbH provides this information as a service to our readers. 
The information provided here is based on our best knowledge at the time of writing, without assuming liability for its accuracy and being up-to-date.