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Berlin property prices in 2020


Are you interested in knowing more about Berlin prices and last real market trends in the German capital?

You are at the right place! Here you can find out about:

  • Current real estate prices in Berlin
  • Price development in the last years
  • Property price development in main Berlin city areas
  • Estimates of current market pricing of vacant and tenanted apartments in each district of Berlin

 

 

Why is it useful to know real estate prices in your city?

Berlin represents today a major real estate market in Germany, Europe and is screened by investors all over the world. Whether you are a landlord or an interested property buyer, having a good idea on property prices in Berlin could be very helpful for:

  • Having a regular market value update: if you own an apartment tin Berlin (or several properties), having an update on market prices and property value trends is valuable and could help following the value development of your property.
  • Take the right decision for selling: by following market trends and cycles you might cease the right window for selling. It allows you taking profit from price increase through positive cycles and avoiding market downturns at the right time.
  • Investing in Berlin: if you intend to invest in a property in Berlin, getting an advanced idea on prices, areas and property pricing in the city will make taking the right decisions in terms of property type, choice, area…
  • Buying your place in Berlin: if you already live in Berlin or if you are interested in moving to the city, a good property price knowledge will be helpful if you intend to buy your own apartment in Berlin. It would help you setting-up your search criteria, areas to target and having agood idea about new home purchase budget.
Berlin real estate property prices levels per district
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Berlin real estate prices development

Berlin Real estate prices in Berlin are the lowest among all major cities in Europe and Germany. Indeed, buying an apartment in Berlin costs generally 5 times less than in London and 3 times less than in Paris. Compared to local housing market, the square meter price in Berlin is 2-3 times less expensive than in major German cities like Hamburg, Munich and Frankfurt (for an equivalent location and home quality). With the booming of the real estate market in the city, the catch-up of property prices in Berlin compared to other European capitals continues with double-digit price growth sustained by tremendous residential housing demand.

In recent years, the German capital has experienced a growing popularity among foreign investors, both private and institutional. As a result, the volume of real estate investments has increased threshold to reach the rate of 10 billion euros per year (against 3 billion in 2014). Moreover, the German capital is currently ranked first among all major cities and capitals in terms of quality of real estate investment, particularly in terms of profitability and the prospects of capital appreciation and profit on resale. In the same ranking, there is Lisbon in the 7th place, Copenhagen in the 6th, Barcelona in the 16th places followed by Paris in the 17th place while London ranks only 27th out of 30 ranked cities, particularly in view of the economic and monetary risks related to the process of Brexit. For historical reasons, the city has a particularly low property home ownership rate with less than 20% of owners (compared to 55% national average in Germany) which leaves a very significant margin of the long-term development of the local property market. The high occupancy rate (about 98%) and the strong population growth (more than 50,000 people a year), support the demand for housing and are important factors of rapid growth of real estate prices in Berlin.

Property prices development in Berlin 2016-2019

graph price development real estate average

The most popular and expensive areas of the German capital are the most international districts like Berlin Mitte Prenzlauer Berg, and Kreuzberg, which are experiencing a very high scarcity in the supply of properties for sale. Friedrichshain district has prices that are generally 10-15% lower depending on the location. City areas such as Charlottenburg, Wilmersdorf and Schöneberg, which are more residential, have real estate prices around 10% lower than “international” neighborhoods. In the districts of Wedding, Moabit, and Steglitz, real estate prices start around 4200 € / m2 for vacant houses. It should be noted that the district of Neukölln is currently the most dynamic of the whole city and has a very promising potential for investment with prices of approximately 25% cheaper than Prenzlauer Berg for example.

These figures are of course general and vary significantly depending on the micro-location of the property in the neighborhood. In this sense, a property located in the best locations of Prenzaleur Berg can far exceed an average location in Mitte. Similarly, a property in the highly sought after Schillerkiez in Neukölln will be more expensive and sold faster than a property around Charlottenburg Castle.

This trend of catching up of real estate prices in Berlin with other European capitals and the prospects of real estate gain are among the main drivers to invest in real estate in the city. The table below clearly illustrates this dynamic of the local real estate market with double-digit price increase.

 

Berlin property prices by area

The median residential Berlin property price is around 4630€ per square meter (ca. 430 € per square foot) by early 2020. This figure is an overall average that combines the price of vacant properties (Eigentumswohnungen in German) and tenanted properties (called Kapitalanlage), generally sold at discount that can reach 40% on some long-term investment properties. It’s also including all types of property standings from basic standing properties to luxury real estate. This difference is due to the extraordinarily strong demand and a quite limited offer for vacant homes in Berlin property market. The tight market supply for vacant homes (rent or sale) is due to the record occupancy rate (either rented out or occupied by owner) of more than 98% in 2020.

Districts and areasBerlin property prices development in 2019
Charlottenburg – Wilmersdorf+8,1%
Friedrichshain – Kreuzberg+7,6%
Lichtenberg+8,5%
Marzahn-Hellersdorf+3,0%
Mitte+4,0%
Neukölln+11,7%
Pankow+7,5%
Reinickendorf+10,9%
Spandau+11,8%
Steglitz-Zehlendorf+11,6%
Tempelhof – Schöneberg+14,1%
Treptow – Köpenick+15,2%
Average+10,2%
Property prices in Berlin Mitte

The price of vacant apartments in Berlin Mitte starts at 6500€/m2 for period buildings. For historical reasons and the construction of Berlin wall, there are very few offers of properties for sale in period buildings in Mitte. However, home buyers have more choice in the new build promising projects in terms of capital gain with prices starting at 7500€/m2. It should be noted that Mitte has a special status with a concentration of international demand on this most central district of Berlin. Investment properties prices for already tenanted homes start around 5000€/m2.

Property prices in Prenzlauer Berg

The price of vacant apartments in Berlin Mitte starts at 6500€/m2 for period buildings. For historical reasons and the construction of Berlin wall, there are very few offers of properties for sale in period buildings in Mitte. However, home buyers have more choice in the new build promising projects in terms of capital gain with prices starting at 7500€/m2. It should be noted that Mitte has a special status with a concentration of international demand on this most central district of Berlin. Investment properties prices for already tenanted homes start around 5000€/m2.

Property prices in Friedrichshain

The price of vacant apartments in Berlin Mitte starts at 6500€/m2 for period buildings. For historical reasons and the construction of Berlin wall, there are very few offers of properties for sale in period buildings in Mitte. However, home buyers have more choice in the new build promising projects in terms of capital gain with prices starting at 7500€/m2. It should be noted that Mitte has a special status with a concentration of international demand on this most central district of Berlin. Investment properties prices for already tenanted homes start around 5000€/m2.

Property prices in Kreuzberg

The property prices in Kreuzberg in period buildings start around 5200 € / m2 and are increasing strongly because of the scarcity of property and the classification of some areas especially around the Markthalle 9, the Begmannkiez and Wranglerkiez where prices are rather around 6000 € / m2 for a vacant apartment (ca. 300000€ for one bedroom vacant flat) For an investment (rented apartment) in Kreuzberg, the purchase price would be around 3500 euros per m2.

Property prices in Neukölln

The property prices in Neukölln in period buildings start around 4500 € / m2. The neighborhood is undergoing a deep transformation and a strong demand, particularly from home buyers from Nordic countries, Brits and also French nationals. The most requested areas are located in the Schilletkiez, near the docks and around the Richardplatz. For a property investment (rented-out apartment with a reduced yield), the price per sqm would be around 3300 euros.

Property prices in Berlin Schöneberg

This central neighborhood between East and West also has a scarcity of properties for sale and prices start around 4500 € / m2. The best areas are around Akazienstr. and Winterfeldplatz. There are some new projects near the Diplomatic Quarter with prices starting from 6000 € / m2. For a rental investment (already rented apartment) the purchase price starts around 3500 euros per m2.

Property prices in Berlin Charlottenburg

House prices in Berlin Charlottenburg, a very coveted neighborhood, start from € 4500 / m2 in sixties buildings in the north of Charlottenburg. Price for period building starts at 5000 € / m2. The most sought-after areas are around Savignyplatz, Kurfürstendamm and Oliverplatz where a one bedroom apartment is still affordable at ca. 6000 eruos per sqm. For a property investment, the prices of the apartments start at around 3500 € / m2.

Property prices in Berlin Wilmersdorf

House prices in Berlin Wilmersdorf differ significantly according to the location. Grünewald and the area around Roseneck are relatively expensive with prices starting around 5000 € per sqm. In other locations, such as the Fehrbelliner Platz, prices start around 4500 € per sqm. The prices of rented apartments start at around 3800 € per sqm.

Property prices in Berlin Steglitz

A quite and family sought-after neighborhood, house prices  in Berlin Steglitz start at around 4200 euros per sqm for vacant flats and have a good potential given the development of the neighborhood around Schloßstrasse.Investment properties prices (already tenanted) start around 3300€/m2.

Property prices in Berlin Wedding

The real estate prices for vacant apartments in Wedding start around 4200 per m2 for period building and the neighborhood offers a good rental investment in Berlin because of its proximity to Mitte and its huge development potential. For a property investment, prices start at around 3500 euros per m2. 

Property prices in Berlin Moabit

Property prices in Moabit start around 4200 euros per sqm for vacant apartments. The most demanded areas are around Kaiserin-Augusta Ufer, Stephankiez and Huttenkiez. The district offers a good investment option in Berlin because of its proximity to Mitte and Charlottenburg. The rented apartments are sold at prices starting around 3500 € / m2 and vary according to the monthly rent and the tenant profile.

How to invest wisely in real estate in Berlin?

Apartment prices of tenanted properties in Berlin could represent a discount of up to 35% compared to the price for similar vacant properties on the market. This is due particularly to the shortage of vacant homes and the high demand on residential housing.

For investors looking for a buy-to-let property with a significant capital growth, it would be a good idea to buy a property that is already tenanted.

Example: one-bedroom apartment in a central sought-after area like Prenzlauer Berg or Kreuzberg would worth ca. 300.000€ if the flat is sold vacant and only 200.000€ if the flat is tenanted

Our real estate agents in Berlin are at your disposal for more information about the property market, the purchase and rental process in Germany and to search for discounted properties for sale. We support you also with a comprehensive property consultancy covering all real estate topics like financing possibilities, mortgage rates, rental levels, rental income and tax advantages of a property investment in Germany.

Unique apartment for sale in top location of West Berlin (suitable for investment), 10713 Berlin, Apartment

Unique apartment for sale in top location of West Berlin (suitable for investment)

Berlin - Wilmersdorf
Rooms:
1
Property size:
35.81 m²
Status:
vacant
Sale price:
281,930 EUR
Chic apartment in Wilmersdorf for sale, 10713 Berlin, Apartment

Chic apartment in Wilmersdorf for sale

Berlin - Wilmersdorf
Rooms:
1
Property size:
35.70 m²
Status:
vacant
Sale price:
288,830 EUR
Bright 2-room investment property in Berlin-Wedding, 13353 Berlin, Apartment

Bright 2-room investment property in Berlin-Wedding

Berlin - Wedding
Rooms:
2
Property size:
52.66 m²
Status:
Tenanted
Sale price:
195,000 EUR
Wonderful 1 bedroom investment property in Berlin Wedding, 13353 Berlin, Apartment

Wonderful 1 bedroom investment property in Berlin Wedding

Berlin - Wedding
Rooms:
1.5
Property size:
44.97 m²
Status:
Tenanted
Sale price:
152,898 EUR

Disclaimer: The above-displayed price map is not contractual neither binding. It shows an indicative level of property prices in Berlin by area. Please note that every area has important disparities in property market pricing. Please, note that within a single area, prices can vary significantly based on criteria such as the status (vacant or tenanted), the yield, the year of construction and the micro location for which home buyers give a high importance.