Berlin's housing market has faced a few challenges of late: high construction costs coupled with a rise in interest rates, high demand for housing in Germany overall, increasing rents, and not forgetting the impact of the Ukraine war and the energy crisis since last year. All these factors led to a low point in the first quarter of 2023. This did not impact Berlin in isolation; the same applies to other major German cities like Munich, Hamburg, and Frankfurt. However, according to our latest market report, we are seeing initial signs of recovery. Let's look closer at the Berlin supply market and the positive indicators that suggest the German housing market is slowly bouncing back.
Berlin real estate market: Price development for existing properties
After months of declining real estate prices, property prices in more than half of Berlin's districts are increasing. The purchase price per square meter (sqm) for flats in the German capital ranges between EUR 4,034 in Marzahn-Hellersdorf and EUR 7,500 in Pankow. Particularly noteworthy districts such as Pankow, Friedrichshain-Kreuzberg, and Charlottenburg-Wilmersdorf have already managed to exceed pre-crisis prices. Here, owners are asking prices per square metre for residential property starting at EUR 6,800. However, it remains to be seen whether this trend will continue in the Berlin transaction market.
