Housing Market Shows Minimal Dip in 2024: Owned Home Prices Fall Slightly
Berlin Real Estate Market Remains Steady in 2025
In the latest report published by the Berlin Valuation Committee, the city's real estate market is showing moderate but positive price growth in 2025. Despite high construction costs and limited supply, prices are continuing to rise steadily, with apartments and semi-detached houses seeing steady increases.
The report indicates that apartment prices in Berlin rose by approximately 0.7% quarter-on-quarter in Q2 2025 and approximately 3.4% year-on-year, albeit adjusted for inflation, gains are more modest but still positive at around 1.3% annually. Semi-detached houses, on the other hand, have experienced price increases of about 2.0% quarter-on-quarter and 3.7% year-on-year adjusted for inflation.
Rental prices in Berlin have also seen an increase, with average rents in Q3 2025 reaching about EUR 16.00/m². However, rental price growth has slowed compared to the surge seen in 2024 and early 2025, with current rent rises becoming more moderate and slightly decreasing when adjusted for inflation.
Supply constraints continue to contribute to sustained price pressure in the city. There is a continued shortage of rental supply, especially for existing properties, which is limiting new inventory. New construction remains weak despite a recent rise in building permits due to high construction and financing costs, and low liquidity in the sector.
The report also highlights significant variations in price trends across districts. For instance, in Berlin Mitte, apartment prices for existing buildings stand around EUR 8,100/m² and new constructions around EUR 10,730/m². Rents for existing apartments average about 22.65 EUR/m², while new construction rents are higher, around 30.90 EUR/m².
Historically, Berlin's property prices have risen sharply over the past decade, but prices are still moderate compared to other major European capitals. The city's strong population growth, economy, and interest from foreign investors sustain demand, while supply bottlenecks limit new inventory, creating upward pressure.
It is important to note that the report does not specify the number of apartments or semi-detached houses used in its analysis, nor does it provide information about price trends for other types of properties in Berlin for the year 2025. The report also does not provide any information about the high-priced apartment in Charlottenburg from 2021, whether it has been sold or if its price has changed in 2025.
In summary, the Berlin real estate market has shown only slight changes so far in 2025, with apartment and semi-detached house prices increasing moderately due to strong demand, supply shortages, higher costs of new construction, and varied dynamics across districts. While rental price growth has slowed recently, sales prices continue to trend upward, with semi-detached houses gaining slightly faster price increases than apartments. New construction stagnation and financing challenges remain critical constraints on supply growth.
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