Residential and commercial real estate market in Berlin 2025/2026: Market situation & outlook

Portfolio market under review: high demand, selective transactions

The lower significance of large-volume transactions in the total volume is less a reflection of a lack of demand than the result of structural shifts on the seller and buyer side. The majority of listed portfolio holders had already completed necessary portfolio adjustments by 2024. At the same time, several large residential portfolios were on the market in 2025, but most of them did not come to fruition. The processes were characterized by intensive scrutiny, particularly with regard to ESG risks, capex requirements, and exit capability. In several cases, the deal fell through at an advanced stage, often due to the withdrawal of equity partners. The result: fewer large transactions were notarized, even though demand was high. A significant portion of the portfolio processes initiated in 2025 are still in advanced stages and are expected to be notarized in the first half of 2026. Others will be continued in partial sales or individual marketing.

Individual properties up to €20 million driving the market recovery

Individual transactions up to €20 million – the classic Berlin rental property market – saw a significant upturn in 2025. The transaction volume in this segment amounted to around €2.18 billion, up approximately 28% on the previous year. The market confirmed a largely constant price level. Following the correction in previous years, no further downward trends can be observed, while demand has picked up noticeably.

The increased activity continues to be met with selective and demanding review processes. Buyers are acting in a disciplined manner, financing is being carefully structured, and investment decisions are following clear economic criteria. It is precisely this combination of higher demand and unchanged critical selection that points to increasing stabilization of the market.

This development is supported by a broad spread of small and medium-sized ticket sizes. The majority of transactions are in the range of up to €7.5 million, while larger individual deals remain rare. The market is therefore not growing on the basis of individual outliers, but rather on the basis of functioning individual transactions with realistic prices.

“The Berlin apartment building market has once again proven its resilience in 2025,” says Benjamin Rogmans, Managing Director and Head of the Residential and Commercial Property Division at Engel & Völkers Commercial Berlin. “Pricing, financing and demand are once again in a healthy balance.”

Results from transactions accompanied by Engel & Völkers Commercial

In addition to the official market data, the transactions accompanied by Engel & Völkers Commercial Berlin provide an insight into specific market activity. The basis for this is 128 residential and commercial property sales completed in 2025, from which conclusions can be drawn about buyer and seller structures.

Shift in buyer structure

While price levels remained largely stable in 2025, the buyer structure changed significantly. The market was increasingly dominated by professional and semi-professional investors. Family offices and institutional buyers noticeably expanded their market share, with around half of all buyers now belonging to this segment.

At the same time, international demand also increased significantly. The proportion of foreign buyers doubled compared to the previous year. Overall, this development points to a return of experienced investors who are approaching the Berlin market selectively, strategically, and with clear investment theses.

Seller structure and holding period

On the seller side, private owners continued to dominate the market, accounting for around 70% of transactions. The long holding period of the properties sold is striking. Almost 80% of residential and commercial buildings had been owned by the sellers for more than ten years, and almost half for more than 20 years.

The motives for selling were predominantly strategic in nature. The focus was on portfolio streamlining and age-related decisions by long-standing owners. In addition, there were the dissolution of communities of heirs and targeted liquidity procurement, as well as isolated cases of tax reasons in connection with inheritances. However, there were hardly any indications of distress sales or structural selling pressure.

Looking ahead to 2026

A further upturn in the Berlin residential investment market is on the horizon for 2026, albeit under unchanged conditions. Market activity is likely to increase above all where realistic prices, resilient properties, and viable financing concepts come together. While small and medium-sized units will continue to form the core of transactions, increasing movement is to be expected in the large-volume segment, particularly with structured portfolio approaches. “The market is continuing to normalize,” says Rogmans. “Deals are being concluded where economic logic and market prices are once again aligned.”

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The publication is aimed at owners, investors, and market participants who want to not only assess the Berlin residential and commercial real estate market retrospectively, but also make informed decisions for the coming years.