Berlin apartment building market shows strength despite political debates

While the first quarter was still characterized by restraint, the second quarter developed much more dynamically. The number of sales rose from 125 to 168 transactions. The sales volume increased from around 411 million euros to around 775 million euros. The average volume per transaction also increased significantly, from around 3.3 million euros to around 4.6 million euros.

"The current development shows that buyers and sellers are coming together. It is particularly remarkable that not only the number of deals is increasing, but also the average transaction sizes. This speaks for resilient confidence in the market," says Benjamin Rogmans, Managing Director and Head of Investment Residential and Commercial Buildings at Engel & Völkers Commercial Berlin.

At first glance, the transaction volume in the first half of the year is below the previous year's level. The main reason for this, however, is the significantly lower parcel business. The classic Berlin residential and commercial building market was much more consistent. Excluding parcel transactions, sales amounted to around 1.19 billion euros, almost reaching the previous year's level.

"If you only look at the total volume, you overlook the actual development. The classic market for residential and commercial buildings works. In many cases, pricing has been completed," says Benjamin Rogmans.

This development is not surprising. While other types of commercial use continue to suffer from structural changes, the residential asset class benefits from its long-term stability.

It is particularly interesting that the positive development is no longer only visible in individual prime locations.

The strongest revenue gainers in the first half of 2026 include Spandau (+71.8 percent), Steglitz (+65.8 percent), Köpenick (+54.2 percent), Lichtenberg (+47.9 percent) and Reinickendorf (+44.1 percent). At the same time, Mitte, Tempelhof and Prenzlauer Berg continue to be among Berlin's highest-turnover investment locations.

This shows a typical development for a market revival: investors are no longer concentrating exclusively on a few core locations, but are once again increasingly looking for opportunities in a wide variety of Berlin sub-markets.

The election result marks the beginning of a new political phase for the Berlin real estate market. From the point of view of market participants, it will now be decisive which housing and economic policy guardrails the new coalition actually sets.

"Berlin has voted democratically. The election result is critically assessed by many market participants. However, it is not the election night that is decisive for the coming years, but the actual coalition and the coalition agreement. Particularly relevant is which conditions will apply to new construction, modernization and investments in the future," says Benjamin Rogmans.

The need for additional living space remains high. At the same time, project developers and investors continue to face high construction costs, challenging financing conditions and extensive regulatory requirements.

"Berlin's housing question will not be solved by political positions, but by additional apartments. The decisive question is under what framework conditions construction, financing and modernization will take place in the future."

Regardless of the political composition of the future Senate, the fundamental strengths of the location have not changed for existing investors.

Berlin is the capital, seat of government, science location, start-up metropolis and home to numerous national and international companies. The city attracts talent, founders, investors, students and skilled workers from Germany and abroad. These structural strengths have neither increased nor decreased as a result of an election result.

The current market data confirm the high stability of the Berlin apartment building market. More deals, rising average sizes and broader market activity speak for a resilient investment environment.

"The fundamentals of the city are intact. That's why we are currently not observing a question of whether investments are being made in Berlin, but under what framework conditions. The real test of the coming years will be whether the political framework conditions will keep pace with the economic realities of housing construction in the future. The new government will have to be measured by this."

Data basis: Evaluation of the purchase figures of the Expert Committee for Land Values in Berlin for rental residential properties including properties with partial commercial use. Survey status: 11 September 2026