Potsdam as an investment location for real estate
Growth city with a strong demand base and proximity to the capital
Potsdam recorded a peak population of 187,820 inhabitants as at 31.12.2024, which underlines the continuous influx and the structurally high demand for living space. The city benefits from its close proximity to Berlin, a strong scientific, cultural and administrative profile and a diversified tenant base ranging from students and public sector employees to high-income households in premium locations. Despite the recent price corrections, market analyses see Potsdam as a low-risk investment location with attractive prime gross initial yields, whereby the choice of micro-location is decisive for stability and value development.
Micro-location advantages: City center/Brandenburg suburbs, Babelsberg and waterfront locations
Locations close to the city center and railroad station with short distances, historic buildings and high visibility are in demand, as these favor low fluctuation and solid reletting potential. Premium and waterfront locations in the Berlin suburbs, Nauener Vorstadt and around the Havel and Park Sanssouci are particularly sought-after, while Babelsberg addresses a broad target group with its urban mix, proximity to the campus and film/media environment. The student and research-related demand pulse as well as small-scale new-build and repositioning projects support lettability in well-connected districts, including high-yield micro-apartment concepts in central locations.
Future impetus and strategies from core to value-add with ESG levers
The RE1 expansion as part of i2030 will bring the second construction phase of platform extensions in Potsdam Park Sanssouci and elsewhere from 2025 and aims to have longer trains with more capacity throughout by 2028 - a clear accessibility and commuter boost for Potsdam's micro-locations. Core strategies focus on refurbished properties in central and water-related districts with a high willingness to pay, while value-add improves the energy parameters and raises exit prospects through energy modernization, window replacement/insulation, efficient heating and PV - especially where price corrections have enabled selective entry. Overall, the combination of population growth, capital city connections and infrastructure upgrades creates a resilient risk/reward profile with stable cash flows and medium-term opportunities for value appreciation.
Standard land values for Potsdam
The standard land values for Potsdam can be found in the standard land values for Brandenburg here.