finance
Affordable Segments Draw Steady Interest Amid Berlin Price Uptick
Modest price gains and persistent rental shortages position owners of lower-cost units to capture stronger returns while transaction volumes stay subdued.
How we reported this
Owner-occupied apartment prices in Berlin rose 2.0 percent in 2025 to a median of €5,813 per square metre, the first annual increase since 2022.
The recovery follows several years of declines tied to elevated interest rates that reduced buyer activity across the city. Existing stock now shows clearer signs of stabilisation while new-build prices remain flat at €6,874 per square metre in the first quarter of 2026.
Rental Supply Shortage Supports Landlords
Vacancy rates below 1 percent keep the rental market under pressure throughout Berlin. Existing flats posted asking-price gains of 1.1 percent quarter-on-quarter in the first three months of 2026 and 5.4 percent year-on-year, according to CBRE data.
Affordable units continue to outperform the wider market even as higher financing costs curb overall buyer demand. New leases reached €15.80 per square metre with only a 0.1 percent annual rise, while existing stock moved up 1.7 percent to €14.90 per square metre.
These figures come from reports by The Grounds AG and JLL that tracked both new and standing properties across the capital. The pattern shows landlords with lower-priced inventory securing consistent occupancy and incremental rent growth where other segments have cooled.
Investment Volumes Signal Selective Opportunity
The Berlin real estate investment market recorded €851 million in first-quarter transactions, down 34 percent from the same period a year earlier. The decline aligns with national trends yet remains less severe locally.
Market participants are directing attention toward segments that combine tight supply with proven rental performance. Existing and affordable stock has drawn the clearest interest because it avoids the steeper price corrections seen in new-build developments, which fell 3.0 percent to €20.73 per square metre last year.
Observers will track whether the modest price recovery and rental resilience extend into the second half of the year as financing conditions evolve.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.