Berlin Real Estate Market 2015: Prices and Trends

Roughly 25 years after the fall of the Wall, Berlin had become one of Europe's most sought-after cities. The population was growing, and with it the pressure on the housing market. Projections from 2015 anticipated 40,000 to 50,000 new residents per year over the following decade. This growth was felt across nearly all 96 districts. The Senate responded with a construction push: over 90,000 new apartments in Berlin were planned by 2020.

What was driving the market

Strong housing demand created a near-zero vacancy outlook, giving property owners planning certainty. On top of that, historically low interest rates were steering investors toward real estate. Combined with Berlin's positive economic trajectory, the result was an environment of predictable rental income and likely price growth. According to our market analysis, all indicators in 2015 pointed to a continuation of this trend.

B-locations move into focus

Price increases slowed slightly in 2015 compared to previous years but remained at a high level. A notable shift was under way: as entry prices in central boroughs like Mitte had already risen substantially, investors increasingly turned their attention to locations previously considered secondary. Boroughs like Wedding, Moabit, and Neukoelln were establishing themselves as investment locations with upside potential.

Apartment buildings: steady demand despite the rent cap

Demand for apartment buildings remained strong in 2015. Even the newly introduced rent cap (Mietpreisbremse) could only slow price growth, not stop it. For long-term investors, conditions were favorable: rent levels allowed for proper maintenance reserves, vacancy was near zero, and rental income was therefore reliably predictable. Current yield was secured, while high demand opened the door to additional appreciation.

For a detailed borough-by-borough analysis and specific price data, our full Berlin real estate market report is available for download.