Berlin's office space market is optimistic about 2026. According to Engel & Völkers Commercial, market activity is likely to pick up noticeably again in the current year.
"We are seeing clear signs that demand in the Berlin office market is stabilising again," says Aissatou Frisch-Baldé, Head of Commercial Leasing at Engel & Völkers Commercial in Berlin. "Companies continue to act selectively, but high-quality and ESG-compliant spaces are clearly in the focus of users."
The small to medium-sized segment in particular has recently proven to be a stable anchor of demand. A large number of contracts in the range of up to 1,000 m² shaped the market and underlines the continuing high demand for flexible office space solutions. The rental price development confirms the stability of the location. The prime rent remains at around EUR 45.00/m², while the average rent is around EUR 25.60/m². At the same time, a moderate increase in vacancies ensures that companies have more leeway for expansion and quality strategies after years of scarce space.
Engel & Völkers Commercial was also able to further consolidate its market position in the Berlin office letting market. In total, the Berlin team brokered around 92 lease agreements in 2025. The lettings were spread across numerous Berlin districts and reflect the broad demand for office space in the capital. While traditional industries are still acting cautiously in some cases, new sectors of the economy are increasingly developing into important drivers of demand. In particular, defense technology, artificial intelligence and green tech companies are providing new impetus for the Berlin office market.
Engel & Völkers Commercial expects a noticeable revival of market activity in 2026. Take-up of space is forecast to be between 500,000 and 550,000 m². As the new construction pipeline has recently declined significantly due to higher construction costs, modernised and ESG-compliant existing properties in particular are likely to benefit from rising demand. "The initial market impulses at the beginning of the year make us confident that demand for high-quality office space will continue to pick up in the course of the year," says Frisch-Baldé.
