Asking rents in Berlin increased more slowly in 2025, while the structural housing shortage persists. Overall, this points to a stabilisation of the property market. As recently reported by the Berliner Morgenpost, the Berliner Zeitung, Thomas Daily and the Immobilien Zeitung, among others, the latest Berlin Residential Market Report 2026 by CBRE and Berlin Hyp shows that the market is increasingly consolidating following the sharp price rises of previous years.
In detail, the study illustrates that asking rents in Berlin continue to rise, albeit at a significantly more moderate pace than in previous years. According to the market overview, the median asking rent for new leases across all segments in 2025 stood at around €15.80 per square metre, representing a 0.1 per cent increase on the previous year. For apartments in existing housing stock, an increase of 1.7 per cent to €14.90 per square metre was recorded, while for new-build apartments there was a decrease of 3.0 per cent to €20.73 per square metre.
At the same time, there continue to be significant differences between the districts: the strongest growth was recorded in Tempelhof-Schöneberg and Treptow-Köpenick, both up 7.6 per cent compared with 2024. In Lichtenberg, by contrast, the median asking rent fell most sharply, by 11.8 per cent.
The slowdown is primarily due to supply and demand stabilising at a level that remains tight. The gap between market segments is narrowing slightly, pressure on the Berlin housing market remains high. The main reasons for this are ongoing population growth and the continuing lack of new-build activity. On a positive note, however, political initiatives such as the ‘Schneller-Bauen-Gesetz’ (fast-track construction legislation) in Berlin or the so-called ‘Bauturbo’ (construction turbo) at federal level could provide impetus for more housing construction in the future – even if their effects are only expected in the medium term.
The latest housing market report also indicates a period of stabilisation for owner-occupied apartments. Following the declines resulting from the shift in interest rates, asking prices have risen slightly for the first time since 2022. Across all segments, the median price stood at €5,813 per square metre, 2.0 per cent higher than in 2024. For existing apartments, an average of €5,496 per square metre was recorded in 2025, whilst new-build apartments reached a level of €8,198 per square metre.
Overall, there are many indications that adjustments to the changed interest rate environment are now largely complete. Berlin is once again seeing rising demand for home ownership, not least due to the ongoing shortage of supply in the rental sector. Going forward, the combination of limited new-build construction, a growing population and stabilised financing conditions is likely to lead to a further moderate increase in prices for owner-occupied flats in the medium to long term.
For investors and market participants, this creates a mixed picture: while the phase of sharply rising rents appears to have come to an end for the time being, continued high demand and a structural shortage of supply continue to support stable market conditions. In Berlin and the surrounding area in particular, residential property therefore remains an attractive investment, especially in well-connected locations and growing districts.
“This trend shows that the Berlin housing market is stabilising at a new level. The combination of moderate rent growth, rising prices for owner-occupied flats and sustained high demand continues to indicate solid investment conditions – particularly in a growing metropolis such as Berlin and its surrounding region,” says Jacopo Mingazzini, CEO of The Grounds.
