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Buying a flat in Berlin is an attractive prospect for many, with its vibrant culture, rich history, and promising real estate market. Here's what you need to know if you're considering investing in the city.
Firstly, it's important to note that when purchasing a flat in Berlin, the services of a notary are essential for drafting and signing the sale contract.
Mortgage rates in the city are currently as low as 0.7 percent, making it an appealing time for potential buyers. The standard down payment for a mortgage in Berlin typically hovers around 30 percent of the total price, although this can vary based on other factors.
Finding a flat to buy in Berlin is made easier with various options. You can approach real estate companies, browse websites like Immobilienscout24, and look at local newspapers. For those seeking more spacious living, the outskirts of the city offer new single-family homes, duplexes, or terraced houses for €3500-4000 per square meter, popular with families.
New regulations have been imposed on short-term rentals/holiday flats in Berlin, making it challenging to obtain permits and making long-term tenants a more preferable option.
Other up-and-coming areas in Berlin include Lichtenberg, where reasonable rates can still be found. If you have around €200-300k to spare for an investment, buying in the outskirts could yield a long-term return or increase in value with resale.
Interestingly, Berlin's real estate market is attracting the attention of international investors, with Chinese and American investors showing particular interest.
Inside the city ring, prices for renovated Altbau flats range from €8000 to €12,000 per square meter. On average, renovated Altbau flats on the city's outskirts cost between €2500 and €3000 per square meter.
Schoenefeld, where the new BER airport is being built, is a good investment location due to expected price increases when the airport becomes operational.
Despite rising prices, Berlin's real estate prices are not expected to become as unaffordable as London, Zurich, or New York within the next five years, but they may experience small price increases even during an economic recession.
Brigitta Muhlhans, the Head of Transaction of the Berlin office of real estate investment company Dr. Lübke & Kelber, specializes in helping national and international private clients and institutions organize their investments and divestments in Berlin's real estate market.
The average price per square meter for condominium ownership in Berlin has increased over the last five years, reaching around 5,140 to 5,678 euros per square meter in 2025, with a near-peak value just below the 2022 high of approximately 5,350 euros per square meter. Recent data shows slight fluctuations but a stable to slightly rising trend overall.
The forecast for the next five years suggests that there won't be any significant drop in real estate prices in Berlin. However, it's recommended to seek guidance from companies or experts for assessing technical issues and building materials, especially for those inexperienced in real estate.
In some parts of Mitte and Charlottenburg, prices are approaching those of Cologne or Munich, indicating a growing demand and potential for further price increases in these areas.
All in all, it's generally a good time to buy property in Berlin due to the low interest rates and the historical stability of real estate values. Whether you're a local or an international investor, Berlin's real estate market offers promising opportunities for those looking to invest in property.
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