Market commentary: Berlin's residential investment market is once again moving into the focus of international investors

Berlin is one of Europe's central residential investment markets. Hardly any other city is under such constant observation by international investors as the German capital. Even phases of intensive political debates do little to change this. The reason for this is the continuing population growth, the high demand for housing and the economic fundamentals of the metropolis.

In the current market phase, there is an interesting difference in perspective: While the discussion in Germany is often dominated by regulation and political intervention, many international investors assess the Berlin residential investment market much more soberly. For them, the long-term view of demand, price level and market size is in the foreground.

The sources of capital behind transactions are not always recognizable at first glance. In many cases, the funds do not come from the buyers' own resources alone. International investors often enter the market via local partners or existing market structures. As a result, the additional capital remains less visible for the time being, but significantly expands the scope of action of individual market participants.

This development can already be observed in the market. Some Berlin investors are again appearing with significantly larger budgets, smaller market participants are moving volumes that would have been unusual just a few years ago.

The interest of international investors can also be explained by the fact that the price level of the Berlin residential investment market remains moderate compared to other European countries. While significantly higher valuations have been achieved in cities such as London or Paris for years, international investors continue to see entry opportunities in German residential investment markets. A look at apartment prices in European metropolises illustrates these differences: In the first quarter of 2025, the average price per square metre for condominiums in London was around 13,440 euros, in Paris around 9,470 euros and in Berlin around 5,880 euros (Statista).