Real estate market Berlin

Berlin - the legendary metropolis

Berlin is cool, Berlin is in, Berlin is in demand. No wonder, because the capital has a lot to offer. The German center of politics awaits with endless green spaces, huge water areas and lots of culture. The capital's nightlife is unparalleled and is known far beyond the country's borders. Not to mention the gastronomic offerings. The cultural melting pot is attracting more and more people who recognize its potential and no longer want to leave.

The population of Berlin is just as varied as the different parts of the city. More than 3.8 million residents make Berlin what it is, an inspiring and exciting mix from all different corners of the population. You'll meet the real Berliner Schnauze (the so called natives of Berlin), but also young families, students from all over the world, hip company founders and thrilling creatives - you can't get more diverse than that. This mixture is precisely what makes the German capital so unique, also in the areas of business and culture. You will notice: Each district has its very own character that is worth exploring. All of this is Berlin - you just have to love it.

What makes people stay and why they invest in Berlin's real estate market is what we'll show you in the following chapters.


Real estate market in Berlin

The real estate market in the capital is booming - and has been for many years. Even though the demand for real estate varies from neighborhood to neighborhood, there is a clear excess of demand. Modernizations and new construction are being carried out as far as possible. After all, space in the city is limited. The high demand and small supply are creating desires that are increasingly attracting the international and young population as a financially strong group of buyers. It contributes to the upward value growth trend in the capital city.

Berlin: Real estate supply and development

Berlin's real estate offerings are as diverse as its residents. While some neighborhoods are home to picturesque villas and mansions from the Wilhelminian period, other parts of the capital are lined with pretty old buildings or nostalgic GDR slab. Former industrial and commercial buildings are constantly being modernized and converted into residential units. And Berlin also has single-family homes with idyllic suburban charm to offer. Everyone gets their money's worth here - if they can find what's being offered. Because that is clearly outstripped by demand, making the Berlin real estate market a genuine goldmine in recent years.

Average first-time selling prices of ownership apartments in multi-dwelling units, ready for occupancy
Source: Gutachterausschuss für Grundstückswerte Berlin, ACCENTRO Homeownership Report 2022

Where are real estate prices heading in Berlin?

In recent years, the price trend for real estate in Berlin has been primarily moving in one direction: steeply upward. Some districts experienced this trend earlier than others. However, even if a price increase is still discernible, it is no longer taking place as rapidly as before. Developments show that supply has grown slightly of late. While the lower price segment is steadily declining, the supply of luxury properties has been flourishing for several years. Nevertheless, there is a clear excess demand across all price segments, which is unlikely to abate in the medium term.

Current rental prices and development

After rising rapidly in recent years, rental prices have declined slightly of late. They are currently leveling off at a constant level. However, there are still enormous price differences between existing and newly built properties. While there has also been a significant increase in supply in the luxury segment in recent years, rental supply is declining overall.

Owner-occupiers' housing costs and rents in Germany's metropolises in euros per square metre of dwelling floor area and month Source: ACCENTRO Housing Cost Report 2022

A detailed look at Berlin's neighborhoods

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