3 min read
09.12.2025

Milieu protection & sale prices: what Berlin property owners should know

How much does milieu protection really affect the sale price of your apartment building? New data from Berlin show that location quality remains the most important factor.

Low-angle view of a white historic building with arched windows and decorative facade, framed by a leafy green tree and bright blue sky.

In Berlin, there are currently 82 so-called social preservation areas. Strictly speaking, the correct term is “areas for the preservation of the composition of the residential population.” The legal basis for this is § 172 of the Federal Building Code (BauGB). For the creation or subdivision of condominium or partial ownership in existing residential buildings with more than five apartments, a citywide permit requirement also applies in Berlin under § 250 BauGB. The current Conversion Ordinance will come into effect on January 1, 2026, and remain valid until December 31, 2030. Certain modernizations also require official approval.

These complex approval processes, combined with the significantly limited options for municipal preemption following the Federal Administrative Court ruling of November 9, 2021, considerably restrict the scope of action for apartment buildings in social preservation areas. Property owners considering a sale frequently ask how being located in a social preservation area affects the achievable purchase price.

An analysis of transactions conducted by Engel & Völkers Commercial in Berlin over recent years provides insight. The following results are based on our transactions and market observations up to and including 2020. Comparing the average prices per square meter of properties in social preservation areas with those of unrestricted properties shows only a marginal effect for 2020. Prices in preservation areas were on average slightly below those of unrestricted properties but remained at the same level as in 2018 and 2019.

Until 2019, the topic of preemption rights was less prominent. At that time, the average prices per square meter in social preservation areas were even higher than those of residential and commercial buildings in other locations. One reason for this is that highly desirable residential areas were often designated as social preservation areas, where purchase prices per square meter had historically been above the citywide average due to strong demand.

Currently, there is generally still demand for residential properties in social preservation areas, although not every investor is suitable for this market. “Buyers of properties located in social preservation areas usually have a very long-term investment horizon. For these investors, location quality is the primary factor,” summarizes Rackham F. Schröder, Managing Director at Engel & Völkers Commercial in Berlin, regarding buyer motivation.

He advises all owners of properties in social preservation areas to “keep a close eye on the current market price of their property and its price development, so they can assess in time whether selling the property might be the more economically sensible alternative to retaining it.”