The buyer of your tenanted apartment may already live there.

Owners in Berlin who are facing a decision to sell know that the market has changed. Higher financing costs, regulation and geopolitical uncertainty are putting established investment patterns and buyer profiles to the test. Tenanted apartments are particularly affected, as the achievable price is directly tied to the market's yield requirements. The strategic purchase of a tenanted apartment for later owner-occupation has also lost its appeal due to long notice protection periods and growing disputes over owner-occupation claims. If traditional target groups can only be reached through price discounts, why not bring tenants into ownership on fair terms?

An underestimated group of buyers

Anyone looking to convert tenanted real estate assets into liquidity may find a buyer on equal footing in their own tenant, especially in a more difficult sales market. The advantages are as obvious for the owner and seller as they are for the tenant and potential buyer. Both benefit from the other's situation. The seller, because they gain an additional target group, can sell within the lock-up period and can set a price that lies between the tenanted and the vacant value. The tenant, because they can move seamlessly into ownership without having to change their living environment, and pay a price well below that of another vacant apartment. For a considerable share of the conversions carried out before Section 250 BauGB was introduced, a restriction still applies that puts the tenant in a privileged position as a buyer. As a result, tenant purchases could gain weight in a housing market where home ownership has traditionally been slow to grow.

The market for tenanted apartments has become significantly smaller

The composition of sales on the Berlin apartment market has changed substantially since 2012. This is particularly evident in the ratio between sales of tenanted apartments to investors and sales to the respective tenants. While in 2015 there was roughly one tenant purchase for every ten sales of tenanted apartments, the ratio had reached one to three by 2025. The transactions recorded so far in 2026 confirm this trend.

The analysis of data from the Committee of Valuation Experts (Gutachterausschuss) shows how strongly market shares have shifted. Since 2012, the share of tenanted apartments in the overall market has fallen from 42% to 19%. At the same time, the share of tenant purchases rose from 5% to 7%. Measured against sales of tenanted apartments, tenant purchases now account for 26.6%.

Tenant purchases are not a new phenomenon, but they have gained considerable weight in a market that has become smaller overall. While the classic investor is losing importance as a buyer of tenanted apartments, tenants themselves are moving into focus. The figures show that the desire for home ownership remains present among Berlin tenants and is increasingly reflected in actual purchase decisions.

Share = tenant purchases ÷ (tenant purchases + tenanted apartments sold to third parties). Source: Committee of Valuation Experts for Land Values in Berlin (Gutachterausschuss für Grundstückswerte), analysis by GUTHMANN®, resale apartments. *2026: data as of early October.

Interest in tenant purchases is particularly pronounced in central boroughs. In Friedrichshain-Kreuzberg, 131 tenant purchases were set against 236 other sales of tenanted apartments in 2025. In Pankow the figures were 84 to 225, in Tempelhof-Schöneberg 87 to 217 and in Mitte 74 to 223. The differences between the boroughs are considerable and are likely related not only to the attractive price level but also to purchasing power.

Almost 170,000 conversions since 2012

Berlin has a large accumulated stock of converted apartments. Between 2012 and 2024, around 169,000 apartments were converted into condominiums, many of them immediately before Section 250 BauGB was introduced, and 28,600 in 2021 alone. Many of the converted apartments have since been sold. The volume shows the extent to which legally independent condominium ownership exists within Berlin's rental housing stock, in very many cases without the tenant's knowledge. In terms of housing policy, the converted stock could in the long term help ease the housing market, because tenants who buy no longer have to search the rental market.

Tenant purchases 2026

Tenants calculate differently from investors

An investor generally buys a future cash flow. For them, rent level, potential rent development, financing terms and yield determine the purchase price. A low existing rent and limited scope to increase it therefore have a direct impact on the price an investor is willing to pay.

For the tenant, the same apartment is initially not an investment. They measure the purchase price not against the achievable yield, but against what a comparable apartment for owner-occupation would cost them. The existing tenancy plays no role for them, as they already live in the apartment. At the same time, they buy at a price much closer to the tenanted value and then hold a vacant apartment that, if they later move out and sell, would achieve the price of a vacant unit. The initial price difference thus becomes a value reserve for them. On top of this comes an advantage that cannot be expressed in euros, because the tenant keeps their familiar surroundings, without searching for an apartment and without moving.

There are numerous websites with a rent-or-buy calculator that address the question of whether a household builds more wealth after X years by buying or by renting and investing the money. This article deliberately does without a sample calculation, which any AI can perform faster and more individually. What rent-or-buy calculators fundamentally cannot do is address the soft factors that speak for or against a purchase. In Berlin, the main arguments for buying are security from owner-occupation claims, an exit from the gruelling search for an apartment, attachment to the neighbourhood and living rent-free in old age. In addition, an owner-occupied apartment frees you from political "constraints". How long existing rents in Berlin will remain comparatively low is a big question mark for many tenants.

Supporting measures

The latest findings of a recurring Postbank study show for 2026 that the desire for home ownership in Germany remains strong. However, financial means often limit actual purchase demand. In Berlin, the gap between rental and financing costs is particularly wide due to heavily regulated rents.

Landlords can make an important contribution to easing their tenants' path into home ownership. Especially in Berlin, where the wish to own often fails due to a lack of equity and high financing costs, several models are available.

One approach is a purchase price that reflects the tenanted status of the apartment and is therefore below the market value of a comparable vacant unit. A vendor loan can also help close financing gaps and reduce the required bank loan. Rent-to-own models, in which part of the ongoing rent payments is credited towards the later purchase price, or purchase options that give the tenant time to build up equity, are also conceivable.

In addition, owners can support their tenants with early financing advice, by providing all necessary documents and by involving public funding programmes.

Conclusion

Tenants in Berlin do not have to rely on luck alone, and even less on politics. Part of the rental apartments converted into condominiums in recent decades is likely to come onto the market gradually. After the recent price corrections, buying has moved back within financial reach for some tenants. It may therefore be worth asking who owns your apartment and whether there are plans to sell.

For owners considering a sale, conversely, it makes sense to consider who their tenants are and whether a direct purchase offer is an option.

From both perspectives, it can pay to start the conversation early. The key to a successful sale may be closer than either side expects.

The points both sides should clarify before a first conversation are summarised in the tenant purchase checklist.