The Housing Market in Berlin

By Matthias Könke, AIOS GmbH

Since the fall of the Berlin Wall in 1989, the city of Berlin and its housing market have witnessed fairly volatile developments. The years until the middle of the 1990s were euphoric, followed by a slump and stagnation until ca. 2010. Since then, prices have gone up again due to low interest rates, money inflow from other countries and the increased attractivity of Berlin in general.

Currently, Berlin has 3.7 million inhabitants. The number of inhabitants has been influenced significantly by the immigration of refugees over the last two years. Projections of the population in the year 2030 vary between 3.9 and 4 million.

Demand for housing has been much higher than in previous years, driving prices up. Prices for new apartments vary between EUR 2,300- 8,700 per square meter (average EUR 4,000 per square meter), an increase of 20.5% compared to 2016 (the highest increase worldwide!) and 120.1% compared to 2004. Prices of used apartments increased at a similar level during the same period. Rents for used apartments increased 71% until 2004. According to the last rent survey dated September 2016, the lie between EUR 4.87 and EUR 14.19 per square meter (average EUR 10.01 per square meter).

Legislation in Berlin is rather tenant-friendly. As a landlord, you are not allowed to increase the rent by more than 15% in three years. Moreover, rental agreements concluded after 31 May 2015 may only contain a rent increase of max. 10% compared to the rent according to the survey. For example, if the comparable rent is EUR 8.00 per square meter, the maximum rent may not exceed EUR 8.80 per square meter. This rule does not apply to new apartments.

Investors are therefore facing increased prices with limitations to potential rent increases. However, it should be noted that there still seems to be potential for both prices and rents in the future – in other German cities such as Hamburg, Frankfurt or Munich, both are even higher, than metropolitan areas such as London or Paris.

Matthias Könke

Matthias Könke

AIOS GmbH, Berlin, Germany
T: +49 30 28498-214
E: This email address is being protected from spambots. You need JavaScript enabled to view it.; W:

AIOS provides Audit and Auditrelated services as well as Tax, IT and Real Estate consultancy services. It has around 40 employees.

Matthias Könke is working as a Certified Auditor and Senior Manager in the Berlin Office. His focus is on Audit as well as Technical and Financial Due Diligence Services for Real Estate investors.

Published: Autumn 2018 l Photo: ©Tiberius Gracchus -

Ggi Logo 150x109px

GGI Global Alliance AG

Sihlbruggstrasse 140
6340 Baar


T: +41 41 7252500
F: +41 41 7252501
This email address is being protected from spambots. You need JavaScript enabled to view it.