Engel & Völkers
  • 4 min read
  • 17. July 2025

Berlin market for residential and commercial buildings grows

318 sales, +10% transactions, strong mid-market segment: The Berlin residential and commercial property (WGH) market is recovering – large-volume transactions, however, remain absent.

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Berlin | In the first half of 2025, the market for residential and commercial buildings in Berlin experienced further numerical growth. According to the latest analysis by the Berlin Expert Committee (Gutachterausschuss), 318 properties were sold – an increase of 10% compared to the same period last year. At the same time, the total transaction volume remained nearly stable at €1.77 billion, due to the continued limited supply of large individual properties (volume above €20 million).

A large part of the market momentum comes from the stable, yield-oriented mid-price segment with increasing investor presence. “While private buyers and family offices have remained consistently active in the market, international investors and investment managers are now returning as well – supported by the positive valuation of Berlin and the residential asset class in particular,” says Benjamin Rogmans, Managing Director of Engel & Völkers Commercial Berlin and Head of the Residential and Commercial Buildings division. “The reason large individual deals are still rare is not due to lack of demand, but to the lack of available product. Especially in the segment above €50 million, interest from institutional buyers is high – but suitable properties are barely available,” he adds.

Table of Content

  1. Market momentum strengthens in the mid-market segment

  2. Portfolio sales indicate institutional demand for large-volume investments

  3. Development over the course of 2025: continuity confirms trend reversal

  4. Outlook: favorable starting point for the second half of the year

Market momentum strengthens in the mid-market segment

The figures show a clear concentration on properties between €2.5 and €7.5 million: in this segment, transaction volume increased by up to 63 percent. Also notable is the growing share of international investors. At Engel & Völkers Commercial Berlin, approximately one in three deals supported in the first half of the year went to foreign buyers – a clear sign that Berlin is increasingly regaining international attention.

Portfolio sales indicate institutional demand for large-volume investments

A particularly positive signal: the volume of portfolio sales in the first half of 2025 increased more than sevenfold to €538.6 million. While the number of deals remained manageable, the high volume clearly demonstrates that demand for large-ticket transactions exists – especially among institutional buyers.

Development over the course of 2025: continuity confirms trend reversal

A comparison with the first half of 2024 underscores the positive market development: the number of transactions in H1 2025 is higher, as is investor interest, not only in the mid-market segment. While caution and waiting dominated in the first half of 2024, a sustainable market activation is now evident. Transaction activity is spreading more broadly across different buyer groups – from institutional investors to private property holders. Particularly encouraging is that this momentum is based not on speculative price movements but on well-founded valuations and economic resilience.

Outlook: favorable starting point for the second half of the year

Despite continuing macroeconomic and regulatory challenges, the market is developing steadily and structurally sound. Buyers and sellers are meeting on equal terms, price realities are now accepted, and investors are acting with clear focus. “We anticipate an active second half of 2025 – driven by investors who identify opportunities with precision and sellers who act with realistic expectations. Those who act professionally benefit from clear frameworks and predictable market processes,” summarizes Rogmans.

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