Apartment prices fall, house prices rise: Berlin's premium real estate market is divided into two

Andriy Semkiv, Managing Director of DAHLER's Berlin office, puts the figures into perspective: "Tempelhof-Schöneberg is increasingly becoming an alternative for buyers who are looking for high-quality Berlin residential areas, but at the same time pay more attention to the price-performance ratio. The district benefits from attractive residential areas, a good infrastructure and – compared to the classic premium locations – sometimes lower entry prices. In Friedrichshain-Kreuzberg, it is noticeable that demand is increasing despite the significantly expanded supply – up 45.5 percent compared to Q1-2025. This speaks for the continued high attractiveness of the district among urban-oriented and, if necessary, international buyers. Although Charlottenburg-Wilmersdorf remains one of Berlin's most important premium locations, it is currently less dynamic than other premium locations. Buyers compare more strongly here and sometimes switch to other districts with more attractive price structures."

The median price for Berlin's premium houses in Q1-2026 was €9,732/m² – an increase of 11.8 percent compared to the previous year (Q1-2025). In no other top 7 city was the growth so strong.

Supply on the Berlin premium house market increased again – after the growth rates from Q1-2023 to Q1-2024 were 10.3 percent and from Q1-2024 to Q1-2025 12.0 percent, supply grew by 8.3 percent this time.

In no other top 7 city did demand develop as negatively as in Berlin, where a decline of 22 percent was recorded compared to Q1-2026. By comparison, the decline in demand was weaker in Hamburg (minus ten percent), Munich (minus five percent) and Cologne (minus four percent), while in Düsseldorf (plus 14 percent) and Frankfurt (plus 12 percent) the trend arrow even pointed upwards.

The median prices per square metre in Berlin's classic premium house districts have risen compared to Q1-2025: While an increase of 7.1 per cent to 10,045 euros per square metre was recorded in Steglitz-Zehlendorf, growth in Charlottenburg-Wilmersdorf was 3.3 per cent, resulting in a median price of 9,982 euros per square metre.

"Steglitz-Zehlendorf in particular confirms its role as Berlin's most important premium market. Despite almost stable demand – minus three percent – prices are rising. This speaks for a continued shortage of supply and a high willingness to pay in the segment of high-quality single-family houses and villas," says Andriy Semkiv.

The figures for apartments and houses in Berlin show that the premium real estate market is developing in opposite directions in terms of prices and demand. "With an increase of 19.8 percent in premium apartments, Berlin recorded the strongest growth in supply of all top 7 cities. At the same time, demand is increasing. In my view, this speaks for increasing market liquidity. Buyers benefit from a wider choice and make their decisions more selectively than in previous years," says Andriy Semkiv. "For premium houses, Berlin is recording the strongest price increase of all top 7 cities, while demand is declining. This indicates that the market is increasingly concentrated on a smaller but very affluent group of buyers. High-quality houses in Berlin's established villa locations remain scarce and continue to achieve rising prices."

According to Björn Dahler, founder and managing director of premium real estate broker DAHLER, the key interest rate hike by the European Central Bank will lead to buyers in the German premium real estate market making even more selective decisions. "Buyers will take an even closer look: at location, property quality, energetic condition, price and long-term intrinsic value," says Dahler. "The fact is that those who buy today do so more consciously than in the years of low interest rates. At the same time, the premium segment remains comparatively resilient because many buyers have high equity ratios and do not have to base their purchase decision solely on the financing burden. The current interest rate decision is therefore unlikely to take demand out of the market across the board, but rather to increase the spread: very good properties in very good locations remain in demand, while location, quality and price must match even more precisely for less outstanding properties."

• In the premium condominium market, the number of offers increased by 19.8 percent in the first quarter of 2026 (compared to Q1-2025).
• The median price in the premium segment of the condominium market in the capital was €8,875/m² (-5.7% compared to Q1-2025).
• Demand increased by nine compared to Q1-2025

• In the first quarter of 2026, the number of offers on the premium market for houses increased by 8.3 percent compared to the same quarter of the previous year (Q1-2025).
• The median price in the premium segment in Berlin was €732/m², 11.8 percent higher than in the same quarter of the previous year.
• Demand fell by 22 percent compared to Q1-2025.