Market Analysis
International investment
Why international investors are buying in Berlin again
Transaction volumes are up, prices have stabilized after the correction, and Germany gives foreign buyers the same legal standing as domestic ones. The data behind the trend.
Peter Guthmann
More transactions, higher prices
According to the Expert Committee for Property Values (Gutachterausschuss), Berlin recorded 12,516 resale apartment transactions in 2025. That is a 10 percent increase year-on-year and a clear reversal of the 2023 decline. The average transaction price reached 5,290 euros per square meter, up 6 percent from the prior year. Over the past 15 years, resale apartments in Berlin have delivered average annual price growth of 8.9 percent.
Mortgage rates have settled at around 3.5 percent for standard maturities. At the same time, new lending volumes for residential construction loans grew by over 14 percent year-on-year as of December 2025, according to the Bundesbank. Normalized financing costs and post-correction price levels create entry conditions not seen since 2019.
Limited new supply, rising rents
Supply and demand in Berlin's apartment market have been diverging for years. In 2024, only 15,362 apartments were completed citywide, according to the Statistical Office of Berlin-Brandenburg. That is down from 17,310 in 2022. The Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) estimates Germany's annual new construction requirement at around 320,000 apartments. Actual completions fall far short of that figure.
The 2022 Census recorded a citywide vacancy rate of approximately 2 percent. Asking rents for existing apartments averaged 18 euros per square meter in 2025, a 6 percent year-on-year increase. This imbalance is structural, not cyclical, and supports rental income over the long term.
Equal rights for foreign buyers
Germany does not restrict property purchases by nationality. Investors from any country can buy residential property in Berlin under the same legal conditions as German citizens. No government approval, no additional transfer tax, no residence permit required.
The German land register (Grundbuch), maintained by local courts, provides state-guaranteed proof of ownership. This is fundamentally different from Anglo-Saxon systems that rely on private title insurance. Notary and land registration fees amount to approximately 1.5 to 2 percent of the purchase price.
Apartment buildings: recovery with entry opportunities
For investors with a larger allocation, Berlin's apartment building market offers another option. According to the Gutachterausschuss, 728 apartment buildings changed hands in 2025, up 11 percent from the prior year. The average purchase price multiple stood at 22.4 times annual net cold rent. At 2,540 euros per square meter, entry prices remain below the 2022 peaks while rental income continues to grow.