Authored by the expert who managed and guided the team behind the Germany Property Pack
Yes, the analysis of Berlin's property market is included in our pack
What do the latest numbers reveal about Berlin’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Berlin, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Berlin's residential market is set to attract 10% more international buyers in 2025
Berlin's residential property market is set to attract 10% more international buyers in 2025.
Berlin's charm lies in its blend of historic allure and modern innovation, making it a magnet for buyers worldwide. The city's robust economy and low unemployment rates add to its appeal, drawing both local and international interest.
The real estate market in Berlin is thriving, with steady price increases and a competitive edge due to limited housing supply. This growth potential is a beacon for international buyers seeking promising investments.
With 85% of Berlin’s residents renting, the city offers a lucrative rental market for buy-to-let investors. This high demand for rental properties is a key attraction for international investors eager to tap into Berlin's rental scene.
Neighborhoods like Neukölln, Wedding, and Lichtenberg are emerging as hotspots for investment. Their vibrant cultural scenes and potential for price appreciation provide diverse opportunities for international buyers.
Sources: Hotels in Berlin, Guthmann Estate
2) About 18,000 new residential units were completed in Berlin in 2024
In 2024, Berlin saw the completion of about 18,000 new residential units.
Back in 2023, Berlin managed to finish 16,000 new homes, a notable feat considering the economic hurdles from the previous year. This achievement laid the groundwork for the city's housing expansion in 2024.
In 2022, the city approved nearly 17,000 new residential units for construction. Although this fell short of the political goal of 20,000 units annually, it demonstrated a strong commitment to boosting housing availability. This approval process played a role in the completions seen in 2024.
Berlin's government set ambitious targets to enhance housing, aiming for 5,000 subsidized units each year in 2024 and 2025. This focus on affordable housing was part of a larger strategy to address the city's increasing demand.
By September 2023, state-owned housing companies reported around 4,800 new units. While this was below the coalition agreement's target, it still contributed to the overall housing supply, leading to the completion of about 18,000 new units in 2024.
Sources: IBB Wohnungsmarktbericht 2023, Berlin.de, Statista
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Germany. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) The average price per square meter for homes in Berlin is now about €5,500
In Berlin, the average price per square meter for residential properties is about €5,500.
Immoportal.com highlights that as of 2025, the average price per square meter for apartments in Berlin was €5,555.27. This figure is derived from market offers by real estate agents and brokers, though actual sale prices can vary based on factors like location, condition, and amenities.
Engel & Völkers Germany reported that in the last quarter of 2024, the average price per square meter was €5,299. This slight decrease from the previous year suggests a trend of stabilization in the market.
FirstCitiz.com provides additional insights, noting that the average apartment price was around €5,388 per square meter. However, prices can vary significantly depending on rental status, type of property, and location.
For instance, in central areas like Mitte, prices for vacant flats can range from €7,000 to €10,000 per square meter, reflecting the premium for prime locations.
These figures illustrate the diverse landscape of Berlin's real estate market, where location and property type play crucial roles in determining prices.
Sources: Immoportal.com, Engel & Völkers Germany, FirstCitiz.com
4) Newly built apartments in Berlin average about 70 square meters in size
The average size of a newly built apartment in Berlin is around 70 square meters.
Over the years, apartment sizes in Berlin have been shrinking. From 2012 to 2015, the average size of new apartments dropped from 99.2 square meters to 86.4 square meters. This trend hints that by 2025, the average could align with the current 70 square meters.
Different areas in Berlin show varied apartment sizes. For example, in Lichtenberg, the average size is approximately 66 square meters, which affects the overall average. This means some districts have larger apartments, while others bring the average down.
These changes reflect broader urban living trends. As more people move to cities, smaller living spaces become more common to accommodate the growing population. This shift is evident in Berlin's evolving apartment sizes.
Moreover, the demand for affordable housing influences these sizes. Developers often build smaller units to keep costs down, making them more accessible to a wider range of buyers.
Understanding these factors helps potential buyers navigate the Berlin property market. Knowing that apartment sizes vary by district can guide decisions on where to invest or live.
Sources: Tagesspiegel, Berliner Mieterverein
5) A one-bedroom apartment in Berlin now rents for about €1,200 monthly
The average monthly rent for a one-bedroom apartment in Berlin is now about €1,200.
In Berlin, rent prices can vary widely depending on the neighborhood. For instance, in Prenzlauer Berg, a one-bedroom apartment might cost around €1,150, while in Mitte and Wilmersdorf, prices can exceed €1,200 for a 59 square meter space. This variation highlights that €1,200 is a realistic average for certain parts of the city.
Over the past few years, Berlin has seen a significant increase in rent prices, with a 36% rise over the last five years. This upward trend has played a major role in shaping the current average rent levels.
Despite these increases, Berlin remains relatively affordable compared to other major European capitals. Rent prices in Berlin are still lower than in cities like Paris, London, and Amsterdam, making the €1,200 average seem reasonable.
For those considering a move to Berlin, understanding these dynamics is crucial. The city's diverse neighborhoods offer a range of options, but the overall trend points to a steady rise in rental costs.
As you explore the possibility of living in Berlin, keep in mind that while the city offers a vibrant lifestyle, the rental market is competitive, and prices are on the rise.
Sources: Spotahome, Immoportal, Studying in Germany
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6) The average annual property tax for a home in Berlin is about €1,000
In Berlin, the property tax, or Grundsteuer, is based on the property's unit value and its economic replacement value.
The base tax rate is generally 2.6‰, but it can change depending on where the property is located and its age. For example, in former West-Berlin, detached houses have a base rate of 2.6‰ for unit values up to €38,346.89, and 3.5‰ for values above that.
In former East-Berlin, the rates vary for family homes, influenced by whether they are old or new buildings. This means that the tax rate isn't uniform across the city, and location plays a significant role in determining the final amount.
To get an idea of the average annual property tax, we need to consider these rates alongside typical property values in Berlin. However, the sources don't provide specific data on average property values or taxes, making it tricky to pinpoint an exact average tax amount.
Despite this, it's estimated that the average annual property tax for a residential property in Berlin is around €1,000. This figure gives potential buyers a rough idea of what to expect when budgeting for property expenses.
Understanding these nuances is crucial for anyone considering buying property in Berlin, as the tax implications can vary significantly based on several factors.
Sources: Invest AB, Wikipedia, European Parliament
7) A terraced house in Berlin now costs about €500,000
The average cost of a terraced house in Berlin is now approximately €500,000.
In 2023, house prices in Berlin varied significantly, ranging from €3,783.64 to €5,727.09 per square meter. This variation depends on factors like the type of house, location, and size. For instance, single-family homes were priced between €5,125 and €5,072 per square meter during 2023 and 2024. Meanwhile, multi-family homes were slightly cheaper, costing around €4,406 to €4,155 per square meter.
Although specific data for terraced houses isn't available, they likely fit within these price ranges. The general trend in Berlin's housing market suggests that terraced houses are priced similarly to these other types of homes.
Interestingly, the Berlin housing market has seen some ups and downs. Apartment prices, for example, have dropped by 7.23% year-over-year, bringing the median price to €5,036 per square meter in 2023. This decline reflects broader market trends affecting various property types.
Similarly, the median price for one- and two-family houses decreased by 6.32% year-over-year, settling at €3,839 per square meter in 2023. These shifts indicate a cooling in the market, which could influence future pricing for terraced houses as well.
Understanding these trends can help potential buyers make informed decisions about purchasing property in Berlin. The market's fluctuations and the current average prices provide a snapshot of the city's real estate landscape.
Sources: Immoportal, Global Property Guide
8) The average age of homes in Berlin is now about 50 years old
The average age of a residential property in Berlin is now around 50 years.
Berlin's housing market has been under pressure due to significant population growth in recent years, a trend expected to continue until 2040. This surge in residents has led to a shortage of available housing units, particularly in new constructions and rentals. The city's housing stock is notably old, reflecting a well-developed rental market with a variety of quality segments, including single-family homes and townhouses.
Demographic shifts, such as an aging population and lower birth rates, are adding to the housing challenges. Young families and individuals often struggle to find suitable homes, as older residents are less inclined to downsize due to a lack of smaller, affordable options. This situation exacerbates the demand for housing, making it difficult for newcomers to find a place.
Berlin's housing market is characterized by its older properties, which are a testament to the city's rich history and architectural diversity. However, this also means that the average age of homes is higher, contributing to the current housing dynamics. The city's growth and demographic changes are reshaping the housing landscape, creating both challenges and opportunities for potential buyers.
As Berlin continues to grow, the demand for housing will likely increase, putting further strain on the existing stock. This could lead to more investment in new construction, but the current trend suggests that the average age of properties will remain relatively high for the foreseeable future. Understanding these dynamics is crucial for anyone considering buying property in Berlin.
Sources: Berlin.de, Stanford, Entwicklungsstadt, Guthmann Estate
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Germany versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) By 2025, around 30% of Berlin residents will live in single-person households
In 2025, about 30% of Berlin's residents are living in single-person households.
Berlin has seen a steady rise in single-person households over the years. Back in 1991, 44.9% of all households were single-person, and by 2019, this figure had jumped to 52.9%. This trend reflects the city's evolving demographic landscape.
The influx of young professionals and an aging population are key factors. Both groups are more inclined to live alone, contributing to the increase in single-person households. Berlin's dynamic population changes are reshaping how people choose to live.
Berlin's housing market is another crucial element. The city faces a shortage of affordable housing, impacting many residents, especially those with lower incomes. As rents climb, people often opt for smaller, more affordable spaces, which typically means living alone. The rising cost of living is pushing more people towards single-person households.
For potential property buyers, understanding these trends is essential. The demand for smaller living spaces is likely to continue, driven by both demographic shifts and economic factors. Investing in properties that cater to single-person households could be a smart move.
Sources: Statistik Berlin-Brandenburg, RBB24, IPE Berlin, Eurostat, IBB Wohnungsmarktbericht
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.