property
Berlin New-Build Prices Remain Flat as Supply Shortage Persists
Market data for the first half of 2026 shows limited movement in new development pricing despite ongoing constraints on apartment completions.
How we reported this
Berlin new-build apartment prices remained stable through the first quarter of 2026 while existing flat asking prices rose 1.1 percent in the quarter and 5.4 percent year-on-year. New-build prices held at €6,874 per square metre according to the CBRE Berlin Hyp Housing Market Report Berlin 2026.
Price Trends for New Developments
Resale apartments reached an average notarised price of €5,320 per square metre in the first half of 2026, up 1.0 percent from the 2025 average after earlier declines in 2023 and 2024. The contrast between stable new-build pricing and modest resale gains points to restrained developer pricing power even as transaction volumes fall.
Supply Constraints and Completion Rates
Rental supply stays critically low with vacancy rates below 1 percent. Only 16,000 apartments are completed each year against annual demand for at least 20,000 units, according to market intelligence cited in the Immobilienscout24 Residential Barometer and related reports. This gap continues to shape the environment in which new projects are brought forward.
Asking rents for existing stock rose 0.6 percent in the quarter and 3.7 percent annually, while new-build rents eased 0.1 percent to €20.98 per square metre. The slight softening in new-build rents occurs against the same structural shortfall that limits overall delivery volumes.
Sales Activity and Market Direction
Sales activity in the first half of 2026 is projected to finish 19 percent below the previous year's full-year total, according to the Berlin Hyp Housing Market Report. The combination of sideways price movement and lower transaction counts suggests developers face continued caution on new launches rather than rapid expansion.
Market participants can monitor quarterly updates from the cited reports for any shifts in completion pipelines or rent levels that would alter current conditions for new projects.
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.