Berlin Apartment Building Report 2025 | Q1
Dear Readers,
The market for residential and commercial buildings in Berlin appears to have passed its low point. Figures from the Berlin Committee of Valuation Experts show a clear rise in completed transactions, signalling a phase of price and factor stabilisation. Between October and December 2024, around 250 notarised properties were recorded—almost twice as many as in the preceding three quarters. Overall, the committee reports 656 notarised deals for the past year.
More sales typically indicate growing demand, which tends to lift values; no one, however, anticipates a price rally in 2025. Instead, consolidation will gradually reach those districts that have been particularly affected by falling prices and purchase price multiples since the start of the Ukraine conflict. The current increase in monetary turnover is accompanied by a lower volume of space, reflecting the sustained interest in smaller properties. Larger investors are once again looking at established A-locations and are also acquiring bigger assets in peripheral areas. Recently, our firm successfully arranged transactions in Schöneberg, Prenzlauer Berg, Kreuzberg, Neukölln, Spandau, and Charlottenburg.
With this report for the first quarter of 2025, we offer concise guidance. In this dynamic market setting, we provide a broad, financially strong, and verified buyer network, as well as comprehensive expertise for a discreet, secure, and profitable sale of your apartment block in Berlin. We are pleased to offer non-binding, in-depth advice.
Yours sincerely,
Peter Guthmann
Overview
The Berlin market for residential and commercial buildings recorded a marked rise in transactions in the fourth quarter of 2024. However, property prices have yet to regain momentum. Compared to the first three quarters, the number of transactions increased by about 37 percent to a total of 656 notarised deals. At an average of EUR 2,480 per square metre, purchase prices remain below 2018 levels. This is according to the GUTHMANN® Market Report Berlin Q1 2025, based on data from the Berlin Committee of Valuation Experts and the firm's own calculations.
Market Activity
At district level, market activity is highest in Steglitz-Zehlendorf, Charlottenburg and Mitte (district). Broken down to neigborhoods, Steglitz, followed by Neukölln, achieved the most transactions in 2024.
Multipliers
According to the data we analysed, the average purchase price factor in Q1 2025 in Berlin is 22.8 on average and 22.3 on average. The achievable factors vary greatly depending on the year of construction, property condition and location. The income situation of an apartment building is increasingly becoming the key to optimising revenue.
Multipliers by neighbourhood
The following chart shows the development of purchase price factors in Berlin's districts. In some "old" districts, there are signs of an end to consolidation, while in others the factors are rising again. The spread between the lowest and highest factor achieved has narrowed, and the values have moved closer together across all locations. In 2018, the highest value was 42 times (Mitte) and the lowest 19 times (Hellersdorf). Currently, the values are between 18 and 28 times the annual net cold rent. The highest factors continue to be achieved in the core district of Mitte.
Prices
Over a period of more than 15 years, prices per square metre for apartment buildings in Berlin were between 500 and 900 euros. The poor condition of many buildings, low rents and stagnating population growth limited the attractiveness of investments at the time. It was only around 2010, with the influx of newcomers from European countries, that demand and rents gradually increased. The increasing shift away from gross rents and extensive refurbishments made residential and commercial properties in Berlin a sought-after asset class. From 2012, the market gained noticeable momentum and reached a temporary peak of over EUR 3,300/m² of living space in 2022. The ECB's interest rate turnaround, in conjunction with the Building Energy Act (GEG), inflation and rising construction interest rates, put an end to this upward trend for the time being.
Average SQM Prices 2018 - 2024
Established Locations More Resilient
Not surprisingly, Berlin's inner-city districts have been the focal point for apartment building investments for years. Even under the changed conditions of the past two years, this hasn't significantly altered. The peak in Hohenschönhausen in the northeast can be attributed to high-volume transactions of newer buildings. On the GUTHMANN® Price Atlas for apartment buildings, you can trace the price development back to 2019.
Apartment Buildings Berlin - Price Map
Peak Prices Have Leveled Off
A trend following the concluding consolidation phase is the narrowing gap between the lowest and highest achieved purchase prices. This development reflects the more homogeneous demand and supply situation. In this analysis, extreme price peaks were smoothed by calculating the average of all transactions within the districts.
Apartment Buildings Berlin - Price Range
Rental Market
Approximately 85 percent of Berlin's residents live in rental apartments. The current housing stock amounts to just over two million units (about 2.02 million). In the current rent index, which applies to about 1.4 million units in the Berlin housing market, the average net cold rent is 7.21 euros per square meter—only 5 cents or 0.7% above the previous year's values. Nevertheless, the 2024 rent index shows significant deviations from its predecessors in both directions. The winners are average and particularly good residential locations, where values have partly increased significantly. Simple residential areas, on the other hand, have tended to be downgraded. Based on data from the GWZ (Building and Housing Census) from the recent 2022 census, we have created a rental atlas that aggregates the 16,000 rental data points collected.
What factors will play a role in the development of apartment block values in Berlin in the coming years?
Currency stability, tariffs, and inflation are interrelated. Rising tariffs make imports more expensive, can push consumer prices higher, and increase inflationary pressure. Will US President Donald Trump’s tariff policy lead to higher inflation in the EU and interrupt the emerging interest rate turnaround? Respected economists assume that the EU and the US will avoid mutual tariff interventions through agreements. Over the longer term, however, a persistently weaker euro-dollar exchange rate could spur additional inflation. Economists also warn that a new wage-price spiral, combined with declining productivity, heightens inflation risks.
According to Deutsche Bank Research, whose assumptions form the basis here, the ECB deposit rate could be cut five times by 25 basis points each in 2025 if inflation continues to decline. As a result, the deposit rate projected by Deutsche Bank Research could stand at 1.5% by year-end. Economists expect more favorable but volatile financing conditions for construction loans over the course of the year. By the end of 2025, DBResearch experts anticipate 5- to 10-year mortgage rates of about 3.5%.*
How are prices developing?
Transactions and turnover in the rental apartment building (Zinshaus) asset class have risen markedly (see above). Yet there are still no clear signs of a rebound in purchase prices. Is ongoing population growth from inward migration to Berlin strong enough to support a long-term price increase? Experts foresee changes in the nature of immigration over time, even without short-term effects of limiting refugee immigration. Berlin has benefited from above-average economic momentum for years, lifting GDP growth almost two percentage points above the national level. This growth attracts many young, well-educated newcomers. Rising demand for labor raises wages and supports consumption. At the same time, continued population growth intensifies competition for housing.
Data and studies from DBResearch point to a fundamental shortage of supply, especially in major cities like Berlin, Frankfurt am Main, Cologne, Leipzig, Munich, and Stuttgart. In Berlin, forecasts predict around 4.5 million residents by 2040. This strained housing market is expected to push prices higher. Although a nationwide population decline is projected to begin after 2032, demand remains strong in key growth regions, particularly amid persistently low new construction activity. In the capital region, high inward migration and weak construction activity further drive prices upward. Overall, rising wage pressure supports purchasing power and, combined with limited housing and a growing population, continues to push prices higher.
Sources: Deutsche Bank Research (http://bit.ly/42Nj2AM); (https://bit.ly/4hABEZa)
Our Expertise For Your Success
Rents, tenancy duration, ownership structures, and vacancy rates are critical factors for investors. We identify value-enhancing elements for your Berlin apartment building and guide your sale to success, always aiming for the optimal market outcome. As recognized experts and trusted brokers for apartment buildings, we offer a free, non-binding consultation to provide you with tailored advice.
Timeline for the Sale of Your Investment Property
The entire transaction process for selling a multi-family house (MFH) in Berlin can be made streamlined, secure, and efficient through professional preparation and execution.
- Initial Consultation: Clarification of the property’s status and determining market-appropriate pricing
- Documentation Preparation: Creating comprehensive documents to facilitate the review process for buyers and banks
- Marketing: Discreet off-market placement within a solvent internal client network
- Contract Handling: Legal review of the contract with lawyers and notaries, including notarization
- District Review Period: (Applicable to social preservation areas; see our blog post on pre-emption rights)
- Execution of the Purchase Agreement: Signing and payment due date
- After Sales: Handover of the property and follow-up support
For sales in designated "milieu protection" areas, districts have a three-month review period, despite the pre-emption practice being halted by court decisions. If a property is managed in accordance with the rules of the preservation ordinance, no pre-emption right applies.

About GUTHMANN®
Since 2006, as a family-run company, we have focused on personal service and tailored solutions. Our profound market knowledge and data-driven analyses, combined with excellent and reliable buyers, enable us to precisely evaluate your property and market it with great success. With our long-standing experience, we ensure an efficient and transparent sales process—achieving outstanding results. Since 2006, we have successfully brokered approximately 100 residential and commercial buildings. We are recognized as one of the relevant Berlin brokers for apartment buildings. We provide discreet and to-the-point advice.
Individuelle Betreuung, professionelle Vermarktung und bestmögliche Ergebnisse.

Kontaktieren Sie uns für eine individuelle und unverbindliche Beratung.
District Reports Berlin
This report was last updated on 27.03.2025 .
Disclaimer
The Guthmann Market Report is a semi-automated report about the property market in Berlin. All information has been carefully researched and is given to the best of our knowledge and belief. We assume no liability for completeness, deviations, changes and errors. Our report does not represent an investment recommendation.
Sources
Amt für Statistik Berlin-Brandenburg: Einwohnerregisterstatistik (Bewegungsdaten), Fortschreibung des Wohngebäude- und Wohnungsbestandes, Ergebnisse des Haushaltegenerierungsverfahren KOSIS-HHGen, Baufertigstellungen. IMV GmbH: Rohdaten Preise und Mieten. Senatsverwaltung für Stadtentwicklung und Wohnen: Umwandlungsdaten (2018), Geoportal Berlin (FIS-Broker). Immobilienverband Deutschland IVD (2018/2019): Immobilienpreisservice 2018/2019.
Methodology
Housing deficit (Treemap): The Statistics Office updates the household data based on the 2011 micro-census. Determination of household count and statistical household size via household generation procedures (KOSIS). We calculate the real household size / housing deficits via the ratio number of inhabitants to number of apartments.
Purchase prices and rents (charts and reports): Calculation of the median on the basis of raw data, own visualization.
Migrations: Aggregation and visualization based on transaction data.