Berlin property prices & real estate market trends
Interested in learning more about Berlin property prices and real estate market trends in the German capital?
You are at the right place! Here you can find out about:
- Current real estate prices in Berlin’s central neighborhoods
- Berlin real estate market development in the last years
- Berlin property prices trends in main city areas
- Key information for understanding house prices in Berlin
Why to get updated about real estate prices in Berlin?
Berlin real estate market represents today a major market in Germany, Europe and is screened by investors all over the world.
Whether you are a landlord or an interested buyer, having a good idea on real estate prices in Berlin might be quite helpful for:
- Having a regular market value update: if you own a property in the city, having an update about house prices trends in Berlin is valuable and could help following the development of your property value in Berlin.
- Take the right decision for selling: by following Berlin property market trends, you might cease the right window for selling. It allows you to take profit from price increase during positive cycles and to avoid market downturns at the right time.
- Investing in Berlin: if you intend to invest in a property in Berlin, getting a detailed idea about Berlin real estate prices, areas and apartment prices will make taking the right decisions for your investment in terms of property type, area, budget…
- Buying your place in Berlin: if you already rent a flat (or plan to move), a knowledge of apartment prices in Berlin will be helpful if you intend to buy your own apartment in the capital of Germany. It would help you setting-up your search criteria, areas to target and having a good idea about your purchase budget.
Berlin real estate prices development
Berlin real estate prices are the lowest among all major cities in Europe and Germany. Indeed, an apartment in the German capital costs generally 3 to 5 times less than in London and 2 to 3 times less than in Paris.
Compared to other housing markets in Germany, house prices in Berlin are 2 to 3 times less expensive than in major German cities like Hamburg, Munich, Stuttgart and Frankfurt, for an equivalent location and home quality standard. With the economic boom of the city, the catch-up of Berlin real estate market compared to other European capitals continues with double-digit 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 residential 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 real estate market in Berlin. 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.
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 an important scarcity in terms of housing supply (vacant flats for sale and for rent). 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, an apartment located in the best locations of Prenzlauer Berg can far exceed an average location in Mitte. Similarly, a flat in the highly sought-after Schillerkiez in Neukölln will be more expensive and sold faster than a flat located next to Charlottenburg Castle.
If you are a landlord and want to have an accurate property appraisal, our real estate agency offers you a free property valuation service in Berlin, a local and international marketing service as well as turnkey management of the sale of your property in Germany.
Berlin property prices by area
The median residential Berlin property price was around 4630€ per square meter (ca. 430 € per square foot) by early 2020. This represent a tremendous double-digit increase of more than 10% and reflects the strong dynamic of Berlin real estate market and house prices strong potential in the German capital.
However, the median house price represents only an overall average and embeds important disparities of pricing between properties in the German capital. In fact, the average price combines all types of property standings from basic standing properties to luxury real estate, different type of houses, micro-locations, floors, amenities…..However the most important disparity in Berlin house prices remains the one between vacant apartments (Eigentumswohnungen in German) and tenanted properties (called Kapitalanlage) that are generally sold at discount that can reach 50% on tenanted properties with regulated rentals. This difference is due to the imbalance between an extraordinarily strong demand (driven by the demographic and due to the economic development of the city) and a quite limited supply of vacant homes (either for rent or for sale). In this way, the tight supply of vacant homes generated a record occupancy rate (either rented-out or owner-occupied flats) of more than 98% in 2021. This is a main key to understand the residential property market pricing in Berlin!
Property prices in Berlin Mitte
House prices in Berlin Mitte starts at ca. 6500€/m2 for vacant flats in period buildings. For historical reasons and the construction of the cold war 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 the German capital. Real estate prices in Mitte for already tenanted period homes start around 5000€/m2.
Property prices in Prenzlauer Berg
Currently the most sought after area in East Berlin, property prices in Berlin Prenzlauer Berg are trading around 5500 € / m2. A 50m2 2 room apartment in good condition in an Altbau in Prenzauer Berg currently costs around € 300,000 (depending on condition, floor, amenities…). The most popular areas are around Helmholtzplatz, Stargarder strasse, Kollwitzplatz and Kastanienallee and prices per square meter are instead from 6,500 euros. In the few new programs under construction, prices start around € 7,500 / m2. For an apartment sold occupied with a regulated rent (in period houses), the real estate prices in Berlin Prenzlauer Berg starts around 3,700 euros.
Property prices in Friedrichshain
Real estate prices in Berlin Friedrichshain start around 5000 € / m2 in for a vacant apartment in a period house. For buyers looking for a scent of history, it is possible to acquire an apartment on the Stalinist-style Karl-Marx Allee (reputed to be very solid and listed buildings) for a slightly higher price point. There are some new programs starting at € 7,500 per m2 but which can reach € 9,000 to € 10,000 per m2 on the docks near the Mercedes-Benz Arena. For a purchase of a period rented apartment, house prices in Berlin Friedrichshain starts around 3500 euros per m2.
Property prices in Kreuzberg
House prices in Berlin Kreuzberg in period buildings start around 5200 € / m2 and are increasing strongly because of the scarcity of housing supply 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-out apartment) in Kreuzberg, the purchase price would be around 3500 euros per m2.
Property prices in Neukölln
House prices in Berlin 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 7000 € per m2. For period houses, tenanted house prices in Berlin Schöneberg would rather start 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 euros 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. For tenanted properties with regulated rentals, house prices in Berlin Steglitz start around 3000€/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 because of its proximity to Mitte and its huge development potential. For tenanted properties with rental cap, apartment prices in Berlin Wedding start around 3300€/m2.
Property prices in Berlin Moabit
House 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 in the German capitaloption because of its proximity to Mitte and Charlottenburg. For tenanted properties with rental cap, apartment prices in Berlin Moabit start around 3300€ per sqm. The prices would vary according to the monthly rent and the tenant profile.
For investors: how to wisely invest in Berlin real estate market?
Tenanted apartment prices in Berlin might represent a discount of up to 40% compared to the price for similar vacant properties on the market. This is due particularly to the sharp shortage of vacant homes and the quite high demand of residential housing.
For investors looking for a buy-to-let investment with a significant capital growth, it would be a good idea to buy an apartment 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 less than 200.000€ if the flat is tenanted. Our real estate agency in Berlin is at your disposal for more information about Berlin property market, the purchase and rental process in Germany and to search for discounted properties for sale.
First Citiz Berlin real estate agency provides you with comprehensive information about Berlin real estate market, the process for buying an apartment in Germany, property types and city areas.
Our English-speaking agents will also inform you about key facts of real estate investment as well as the German property tax rules. You can also ask us about mortgage possibilities with a German bank or a credit institution in Germany as well as the current borrowing rates in Germany.
For any other relevant information relating to your real estate purchase plans, please do not hesitate to contact our team and to have a look on our selection of apartments for sale located in the best areas of the capital of Germany.
If you are a landlord and thinking of selling your property in Berlin, do not hesitate to contact us to have your property valued for free.
Our international real estate agency offers you a free property valuation service in Berlin. In this sense, First Citiz Berlin offers you a unique international marketing service as well as turnkey management of the sales process in Germany.
Our service for your property valuation in Berlin is 100% free of charge and non-binding!
For a market value appraisal of your property, please get in touch with First Citiz Berlin team:
- Phone: +49 30 41 71 72 74
- Email: firstname.lastname@example.org
- Address Pappelallee 11, 10437 Berlin
Disclaimer: The above-displayed price map is not contractual neither binding. It shows an indicative level of real estate prices in Berlin by area. Please note that every area has important disparities in property market pricing. Please, note that within a single area, apartment prices in Berlin 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.