Amsterdam versus Berlin

Paradoxes of the Luxury Apartment Market

Abstract

Luxurious housing is expensive. But expensive housing is not by definition luxurious. This is evident from a comparison between luxury apartments in the cities of Amsterdam and Berlin. A luxury apartment in Amsterdam is finished with spray plastering and steel lipped doors, while people in Berlin turn up their noses at that. The size of the average living quarters in the two cities is also poles apart. What underlies these differences?

Market demand, implemented policy and historical factors determine the conditions for what is sold as luxury. This essay attempts to shed light on the possibilities and impossibilities of developing luxury apartments by comparing the two capitals. It associates market demand and policy with the level of services and finishing and with the quality of the floor plans of the dwellings.