The Berlin residential property market has started 2026 on a robust footing. The latest ImmoScout24 Housing Barometer shows that the market for home ownership remains stable despite economic and geopolitical uncertainties, and that Berlin is one of the most dynamic cities in Germany when it comes to existing flats and detached houses. At the same time, pressure on the rental market has eased slightly, as demand is declining nationwide and asking rents are rising only moderately in many places. The latest figures have recently been reported by Cash.online, Handelsblatt and WirtschaftsWoche, among others.
Developments in Berlin’s residential property market are particularly interesting. For existing flats, asking prices in Berlin rose by 1.1 pe rcent in the first quarter of 2026 compared with the previous quarter. Year-on-year, the increase was as high as 5.4 per cent. In the new-build segment, prices in Berlin remained stable quarter-on-quarter, at a high level of €6,874 per square metre. Berlin is also proving resilient in the single-family home market: prices for existing homes rose by 0.6 per cent quarter-on-quarter, whilst in the new-build sector the price level remained virtually unchanged at -0.2 per cent.
Meanwhile, there are signs of some easing in the rental housing market, although it would be premature to say the situation is fully under control. Nationwide, demand for rental properties fell in the first quarter of 2026. In the areas surrounding major cities, the decline was slightly steeper at 4.0 per cent than in cities and rural areas, where it stood at -3.0 per cent in each case. In the major cities themselves, however, there was a slight upturn of 1.0 per cent. In Berlin in particular, rent growth in the existing housing stock is significantly more moderate than in earlier phases of the sharp price rise, with a quarterly increase of 0.6 per cent and an annual rise of 3.7 per cent. In the new-build sector, asking rents in Berlin fell marginally by 0.1 per cent compared with the previous quarter to €20.98 per square metre.
For market participants in Berlin and the surrounding area, two key conclusions can be drawn. Firstly, the combination of stable or slightly rising purchase prices and a simultaneous slowdown in rental growth points to gradual market normalisation. Secondly, the German capital remains an exceptionally resilient residential market by national standards. Whilst many prospective buyers are currently adopting a wait-and-see approach, according to ImmoScout24, Berlin in particular continues to show above-average price growth for existing flats and houses. This underscores the fact that, despite all the uncertainties, the capital and its surrounding area remain a market with sustainable long-term demand.
“The latest figures from ImmoScout24 show that the Berlin residential property market is stabilising at a solid level overall. This is a particularly important signal for Berlin and the surrounding areas, where structurally high demand continues to meet limited supply. In our view, there are strong indications that well-positioned residential properties in the capital region will remain in strong demand in the coming quarters,” says Jacopo Mingazzini, CEO of The Grounds.
