Berlin's Rental Crisis: Policy Shifts Finally Moderate Surging Prices

Berlin's median asking rent for existing apartments reached approximately €15.80 per square metre in 2026, a minimal 0.1% increase compared to 2024.

Policy Measures and Market Context

Berlin's state parliament approved a comprehensive rental registry, establishing the first such database among federal states. This step accompanies ongoing development policy guidelines from the Senate and a new innovation strategy for the capital region. The measures occur against a backdrop of structural housing shortage that limits new supply and keeps vacancy rates below 1%.

Rent Patterns Across Segments

New-build asking rents fell by €1.00 per square metre year-on-year to €22 per square metre. Resale segment rents have stopped rising. Rents for the lowest 10% of apartments rose 13.1% to €11.43 per square metre, while prime rents at the 90th percentile declined by 2.3%. Citywide rents rose 12-15% since late 2024, with the largest gains up to 15.6% recorded in 1-bedroom and 2-bedroom apartments before growth slowed to sideways movement in the second half of 2025.

Evidence from Recent Data

Berlin faces a structural housing shortage of roughly 120,000 homes, with only 15,362 apartments completed in 2024. Asking prices for existing apartments rose 2.0% to €5,813 per square metre in 2025, the first increase since 2022. Residential investment transactions reached 819 in 2025, up 23%, before Q1 2026 volumes fell 34% year-on-year to €851 million.

Outlook for Tenants and Landlords

Market participants will monitor how the rental registry and updated planning guidelines interact with the existing shortage. Rental supply is expected to remain tight, sustaining pressure on availability even as overall rent growth moderates.

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.