New Home Prices in Berlin

Find out here about prices and the development of the market for new construction projects in Berlin. Our statistics and forecasts are primarily aimed at project developers. But end customers also gain a good overview of the market prices for new-build flats in Berlin here. Get in touch with Hendrik Treff, our local expert for marketing new construction projects in Berlin.

In recent months the market for new residential development projects in Berlin has been impacted by a variety of factors. A key factor in this regard is the development of interest rates. At the end of the first quarter there was thus a significant fall in customer demand, which has, however, stabilised in the second half of the year as interest rates have gone back down again. Nevertheless demand is still below the previous year’s level. There is a clear time lag between interest rate developments and buyer behaviour. In the long term we expect demand to stabilise and increase again.

Parallel to the demand trend, the number of available properties is currently stable to falling since some new development projects in Berlin have been postponed in response to the present uncertainties. In the mid- to long term we even expect a significant fall in supply as a result of the smaller number of building permits being issued and the postponement of projects due to the shortage of materials and supply chain problems. In addition to this, the political situation in Berlin means that there is now a trend towards building commercial rather than residential real estate where both are an option.

The war in Ukraine and consequent economic changes have impacted the market in many different and diverse ways. Firstly, interest rates have risen, while the shortage of workers and materials in the construction industry is also causing problems. Furthermore, the energy crisis caused by the war has once again made new-builds significantly more attractive than existing buildings. New properties often have optimum energy-conserving technology while older ones usually have outdated heating systems, etc. Due to its many start-up companies and the inflow of international specialist professionals, Berlin has proven to be a resilient economic location. We believe that this positive trend will continue.

Prices quoted for new-build flats Berlin

Berlin is not dependent on one specific industry or location factor. In addition to long-established political, scientific and industrial structures, the small start-up sector has metamorphosised into a huge economic factor. Large new companies with thousands of employees, such as Zalando, have developed and are still developing. Parallel to this, US tech giants such as Google, Amazon or Tesla are focusing on the area around the capital to utilise synergy effects with these companies and exploit the capabilities of their highly skilled employees. There is thus a higher probability that Berlin will be less impacted by classic cycles, since diversified economic structures are more crisis resistant.

Typical new-build flats in Berlin in 2022

Demand will settle at a somewhat lower but still satisfactory level. Supply, in contrast, will become even more limited, while buyers’ focus on product quality and facilities (for example, sustainability or incidental costs) will become even more pronounced in future. In addition to the location, developers will have to plan exactly how they wish to position projects and whether their chosen target group matches the product and the corresponding price. Projects with this “product/market fit” will continue to be easy to sell.