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Berlin property prices 2021: how the suburban trend is reshaping the market

The pandemic is accelerating the move from city to countryside. More and more Berliners are heading to Brandenburg. This is changing property prices across the metropolitan region and creating new investment opportunities.

Peter Guthmann Peter Guthmann
Market Analysis 2 min read

The Covid-19 pandemic and the rise of remote work are changing housing preferences across the capital region. More and more Berliners are drawn to the city's outskirts or straight into Brandenburg. This trend existed before the crisis but is gaining momentum, with direct effects on market developments and property prices throughout the metropolitan area.

Covid-19 as an accelerator of an existing trend

Since 2014, large German cities including Berlin have recorded a negative internal migration balance: more people moving to the surrounding areas than the other way around. The pandemic amplifies this. The possibility of permanent remote work loosens the tie to an urban workplace. According to the digital association bitkom, one in five workers would relocate if they could work from home permanently. Young families in particular are looking for more space, a garden and lower living costs in the surrounding region.

From Pankow to Barnim: the new commuter corridors

Data from the Berlin-Brandenburg Statistics Office confirm the trend. In the first nine months of 2020 alone, around 14,900 people moved from Berlin to Brandenburg. The most popular destinations are the directly bordering districts of Oberhavel, Barnim and Maerkisch-Oderland. The main departure boroughs on the Berlin side are Pankow, Marzahn-Hellersdorf and Treptow-Koepenick. At the same time, demand for centrally located apartments in Berlin, particularly among students and international newcomers, remains high.

Impact on property prices

Suburbanisation is driving prices in the commuter belt noticeably upward. Districts such as Potsdam-Mittelmark and Dahme-Spreewald already rank among eastern Germany's most expensive regions. At the same time, Berlin's tight housing market itself is a major reason for the outward migration. According to a study by the Sparda banks association, neighbourhoods in Mitte, Tiergarten and Dahlem, with prices above 6,000 euros per square metre, are among the most expensive in Germany. These high prices make home ownership unaffordable for many inner-city families.

Investment potential

For property investors, the map is shifting. While the Berlin market continues to rank among Europe's most attractive, the metropolitan region and the commuter belt are gaining attention. Demand for single-family houses and larger apartments with good digital infrastructure in the surrounding area is rising. For owners within Berlin, the trend supports continued value stability, as the city remains a migration destination through other demographic groups despite family outflows. Investments in adjacent Brandenburg municipalities currently offer appreciation potential.

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