3 min read
16.01.2025

Berlin residential real estate market 2024: from stabilization to recovery

The Berlin residential investment market looks back on a year with mixed signals. Overall, however, transaction volume ultimately increased in 2024 by an impressive 46.2 % to 4.33 billion euros (2023: 2.96 billion euros) – a figure that is once again very close to the five-year average from the period before the interest rate crisis.

With 665 properties sold, the number of transactions was also increased by 10.0 % (2023: 604). This development, however, can be divided into two clearly distinguishable market segments: the stable apartment building market up to 20 million euros and the resurgent large-volume segment from 20 million euros). This is reflected in the latest figures from the Berlin Valuation Committee, which are available exclusively to Engel & Völkers Commercial in Berlin.

Table of Content

Market revival driven by large-volume transactions
Stability and moderate price declines in the apartment building market
Differentiated developments across price segments
Outlook
Conclusion

Market revival driven by large-volume transactions

A key driver of overall growth in 2024 was large-volume transactions of 20 million euros and above. In this segment, the number of sales increased from 17 to 41 properties (+141 %). Turnover in this category reached a new high and accounted for a substantial share of total volume (+61 %). The fourth quarter was particularly impressive, achieving revenue growth of 54 % compared with the previous year. Despite this momentum, the availability of attractive portfolios remains a challenge. High-quality properties in prime Berlin locations continue to be scarce, with demand correspondingly high.

Stability and moderate price declines in the apartment building market

The regular apartment building market up to 20 million euros remained largely stable in 2024. With a transaction volume of just under 1.7 billion euros (2023: 1.97 billion euros), this submarket was overall 14.2 % below the previous year’s result, mainly because more small properties were traded than in the prior year. The number of properties sold increased slightly (+6.7 %), while average prices per square meter in the lower price segments (up to 7.5 million euros) only declined marginally. Investors – particularly private and semi-professional buyers – remain the dominant players in this segment.

Differentiated developments across price segments

A detailed look at the individual price segments shows that the number of sales in the volume up to 2.5 million euros increased significantly by 30.8 %, while prices per square meter declined only minimally. In the remaining clusters, up to 20 million euros, prices also remained largely stable. With slightly declining sales figures, prices per square meter compared with the previous year fell only moderately.

Outlook

“The Berlin residential investment market showed differentiated dynamics in 2024. While the regular apartment building market demonstrated stability and steady growth, large-volume transactions provided a significant boost to overall volume,” explains Benjamin Rogmans, Managing Director and Head of Investment for residential and commercial buildings at Engel & Völkers Commercial Berlin. “With a very strong fourth quarter, we are entering the new year with optimism. We expect the market to continue to gain momentum, particularly in the high-price segment.”

Conclusion

The year 2024 was characterized by a renaissance of large-volume transactions and stable developments in the regular apartment building segment. Despite challenges in certain price segments and intermittent fluctuations (especially in Q3), the Berlin residential investment market overall demonstrated impressive resilience and dynamism, pointing to a solid foundation for 2025.