Market Analysis
Market analysis for investors and owners
Berlin property prices February 2025: Market analysis
In early 2025, Berlin's property market has stabilised. Purchase prices are rising moderately, rents are climbing fast. A look at the numbers by borough.
Peter Guthmann
Berlin property market: February 2025
After two years of correction, Berlin's property market has firmed up at the start of 2025. Average listing prices for resale apartments sit at 5,430 EUR per sqm, up 2.20 percent year on year. Based on 11,371 notarised transactions, the median sale price is 4,980 EUR per sqm.
New developments show stronger momentum: listing prices are up 4.90 percent to 8,420 EUR per sqm, while realised purchase prices have risen by around 3 percent to 7,980 EUR per sqm. Demand for apartments in Berlin remains solid, though buyers are more price sensitive than before the interest rate turnaround.
Rental market: 15 percent above last year
The rental market is moving fast. Listing rents across Berlin have risen 15.10 percent year on year. Behind that increase is an excess of demand driven by continued inflow and slowing new construction. For owners and investors, this translates into strong re-letting security and rising yields. The gap between existing contract rents and new contract rents continues to widen.
Borough comparison
The city wide trend is made up of very different trajectories at borough level.
In Charlottenburg-Wilmersdorf, resale prices dipped slightly by 0.10 percent (median: 6,150 EUR per sqm). New development prices rose 8.60 percent to 10,760 EUR per sqm.
In Friedrichshain-Kreuzberg, resale prices grew 1.30 percent to 5,970 EUR per sqm. New development prices were flat, down 0.40 percent.
In Lichtenberg, the picture was reversed: resale prices fell 2.20 percent to 4,460 EUR per sqm, while new development prices jumped 8.30 percent to 7,300 EUR per sqm.
These regional differences require careful micro-location analysis.
Federal election on 23 February 2025
The federal election adds uncertainty. Depending on the outcome and coalition formation, the regulatory framework for property investment could shift, for example through new rules on rents or building permits. Many market participants are holding back, which is slowing transaction activity in the short term.
Assessment
Berlin's property market has stabilised in 2025. Rising rents support yields, and stabilised purchase prices create entry opportunities. At the same time, the varied market development across boroughs and the political situation call for a data driven strategy. Detailed analysis of the apartment building market and individual boroughs is available in our full market reports.