Even better than before: The GUTHMANN® Intelligence Report
Dear Readers,
The Berlin residential market developed differently across segments, locations and price ranges in 2025.
Existing apartments cost an average of 5,130 EUR/m², an increase of 3% compared to the previous year. By the end of 2025, approximately 11,300 apartments will have been notarized, similar to 2024. Demand is concentrated on properties under 400,000 euros.
Regional price development ranges from +9% to -5%.
New construction averages 8,200 EUR/m², with around 1,400 transactions by year-end.
In the rental market, asking rents for existing apartments are rising to 16.35 EUR/m². Structural scarcity persists.
From 2026 onwards, additional apartments may potentially enter the market as the 7-years sales restriction periods from former conversions expire.
Anyone buying or selling now requires precise market knowledge and professional timing.
Yours, Peter Guthmann
Local property markets in Berlin
The main activity in the existing property market in Berlin is concentrated inside the S-Bahn rail center, while the new construction segment with space-intensive volume projects is predominantly decentralised.
Fig. Transactions for existing apartments 2024
Fig. Transactions new-build apartments 2024
Average purchase prices
Property prices in Berlin are highly location-dependent and vary significantly within Macro, Midi and Micro locations. The administrative districts are followed by the old districts, i.e. the neighbourhoods. In these districts, we record prices in detail – from the district level down to the block level. Our analyses are based on data from the Berlin Property Appraisal Committee. The average values cover all apartment types and purchase cases and provide a location analysis that does not replace an individual valuation. The GUTHMANN® valuation tool and the experienced Guthmann Estate team are at your disposal for a valuation specifically tailored to your property, flat or apartment building.
Existing Properties
In terms of districts, there is a price corridor of around 5,600 to 5,800 euros in the segment of existing flats from the south-west to the centre to the north of Berlin. An average flat in these districts measures between 70 and 76 square metres and costs on average between 420,000 and 445,000 euros. The cheapest flats are located in Spandau.
Average purchase prices for existing apartments
New builds
Newly built apartments in central city locations are no longer available for less than EUR 10,000/m² on average. In special micro-locations, prices can also be well above the average. The highest prices per square metre in 2024 are found in the area around Oranienburger Strasse, Savignyplatz and Ludwigkirchplatz.
Fig. Average purchase prices for new apartments
Price development over 1, 3, 5 and 10 years
Property sales in Germany can be tax-free under certain conditions, the most important factors being the holding period and the use of the property. A holding period of ten years or more allows owners to realise gains from the sale of private property free of income tax, as long as the property is not part of their business assets. Own use of the property can also lead to tax exemption, regardless of the holding period, if the property has been used as a residence in the year of sale and the two previous years.
The periods of 1, 3, 5 and 10 years are therefore of particular interest. The one-year period provides a short-term analysis of value and gives an insight into the volatility of the market. Three and five years provide a medium-term perspective, showing how the property will perform over an average holding period. The ten-year period represents the tax-relevant limit and gives investors an indication of the tax-optimised holding period.
Percentage development of purchase prices in Berlin districts over 10, 5, 3, 1 years
Apartment Buildings Berlin 2024
After a period of consolidation, Berlin's apartment building market shows positive developments in 2024. In the third quarter of 2024, the market recorded a significant increase in transactions and offers. Experienced family offices and private investors are showing increased interest, driven by attractive purchase price factors, rising yields and an interesting supply. The number of transactions has picked up after several quarters of decline. Up to October 2024, 404 sales of residential and commercial properties have been registered. The average purchase price factor is around 23.3.
While monetary turnover is increasing, floor space turnover continues to decline. This suggests that investors are increasingly focusing on properties in central locations, which are considered stable in value despite higher prices.
Rents in Berlin are rising steadily, leading to improved returns for investors. This mechanism compensates for the rise in interest rates and prevents further erosion of purchase prices. Overall, the Berlin apartment building market is showing signs of stabilisation with positive trends in 2024.
Fig. Apartment Building Market Berlin KPIs
Investment focuses
Which districts have buyers focused on over the past five years? The following table provides an overview.
Ihr direkter Draht zu uns
Rental Housing Market Berlin
Berlin's rental market is influenced by factors such as immigration, population growth and housing policy measures. Over the past 20 years, Berlin has undergone significant changes as a result of rising demand and falling vacancy rates. Many neighbourhoods have developed into districts that are now known for their high quality of life, diversity and popularity.
With the focus on regulating existing rents rather than new construction, more and more rental housing has been taken off the market. This trend began with neighbourhood protection and culminated with the rent cap, which, despite its short duration, significantly reduced the supply of rental housing and created great uncertainty for many landlords. The current regulations also discourage new construction and restrict free pricing, which has contributed to the release of large housing stocks in other markets. With existing rents rising only very slowly, there is no incentive to downsize, so large apartments are increasingly occupied by small households. As it is difficult for many owners to rent out flats indefinitely in an economically viable way, many flats are sold or - entirely legally - rented out on a temporary basis.
The result of the GWZ (building and housing census) of the 2022 census shows how low existing rents in Berlin actually are.
Fig. Average rents per square metre according to the 2022 census
Average ‘absolute’ rents
At least as important as the rents per square metre are the average total net rents, which were also surveyed in the 2022 census and are shown here on a map. Interestingly, in addition to the very central areas of the city centre, Berlin's peripheral districts are also divided into higher rent ranges.
Fig. Average absolute net cold rents
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Trend
Die uns wohl am häufigsten gestellte Frage ist, wie sich der Immobilienmarkt in den kommenden Jahren entwickeln wird. Unsere Analysen, die erstmals nicht auf Angebots-, sondern ausschließlich auf Transaktionsdaten beruhen, spiegeln mit minimalem zeitlichen Verzug die Angebots- und Nachfragesituation des Marktes wider. Für die kommenden Quartale kann verhältnismäßig sicher von einer abschließenden Stabilisierung der Kaufpreise ausgegangen werden, wobei die Entwicklung innerhalb der Segmente mal mehr, mal weniger zinsgetrieben verlaufen dürfte. Der Markt für freie Wohnungen hat bereits wieder deutlich angezogen und liegt preislich sowie im Transaktionsvolumen nahe am Vorkriegsniveau. Vermietete Wohnungen als Kapitalanlage stehen stärker unter dem Einfluss des Zinsumfelds. Insbesondere in diesem Segment ist für 2025 mit einer deutlichen Erholung zu rechnen, da gestiegene Mieten und langsam wieder rückläufige Bauzinsen ein attraktives Investitionsumfeld schaffen. Mehrfamilienhäuser, die Berliner Zinshäuser, haben zuletzt sowohl quantitativ als auch preislich und in Bezug auf die Faktoren nachgegeben. Der Preistrend wird sich, aus denselben Gründen wie bei vermieteten Wohnungen, sehr schnell wieder umkehren und aufwärts zeigen.
In welchem Segment Sie sich auch immer bewegen, können Sie weiterhin auf unsere Expertise, unsere Analysen, unser Käufernetzwerk und unsere internationale Reputation vertrauen.