E&V Real Estate Trend Report Berlin 2025: Residential property remains the strongest asset class

Panoramic Berlin skyline at sunrise with the TV tower and cathedral dome rising above historic rooftops under a pastel sky.

E&V Real Estate Trend Report Berlin 2025

Residential remains a key market: investors act selectively but decisively

Current sentiment among Berlin market participants:

83.6% expect stable prices, 51.5% anticipate rising prices in the residential segment
74% view residential property as the most promising asset class
Regulation remains the biggest investment risk
Every second investor is active—focusing on portfolio optimization and, in part, ESG

The Berlin real estate market presents a differentiated picture in 2025. Residential property, in particular, continues to serve as a stable cornerstone. These insights come from the latest E&V Berlin Real Estate Trend Report, compiled by Engel & Völkers Commercial Berlin based on feedback from 236 market participants.

236
Berlin market participants were surveyed in mid-September about the developments they expect for the real estate market.
51,5%
of those surveyed, 83.6% expect rising prices for residential properties, while 83.6% expect them to remain stable.
71%
of the respondents identified both regulatory and political factors as well as interventions in tenancy law as the biggest sources of uncertainty.

Residential as the strongest and most stable asset class

Despite challenging market conditions, residential property remains the dominant investment in Berlin. 83.6% of respondents expect stable or rising prices, with 51.5% anticipating an increase. For the majority, residential is considered the most reliable and attractive segment in the capital. Office and retail properties are heavily affected by structural changes such as remote work, AI, recession, and shifts in consumer behavior, with a slow recovery expected only from 2027 or later.

Logistics properties present opportunities in selected areas, which investors are already recognizing. “Residential property is and remains the backbone of the Berlin market. Demand stays high, risk is low—investors act thoughtfully but strategically,” says Benjamin Rogmans, Managing Director and Head of Investment at Engel & Völkers Commercial Berlin. “Capital seeks stability, and it finds it in residential holdings—especially where portfolio optimization and value-add potential can be realized.”

Investors are acting selectively

Currently, every second respondent is active in the market, at least to a limited or selective extent. Core and Core+ strategies dominate, while one-third pursue Value-Add approaches to further develop existing assets.

41% plan additional acquisitions over the next 12–24 months, and 33% intend to strategically upgrade or renovate their portfolios. ESG-focused renovations continue to play an important role.

Market conditions remain decisive

71% of respondents cite regulation and political interventions—particularly in tenancy law—as the greatest sources of uncertainty. Rising financing costs, stricter lending criteria, and interest rate developments continue to be key influencing factors.

The majority remain confident that clear regulatory frameworks and falling interest rates would give the market a renewed boost.

Outlook

The Berlin real estate market in 2025 is in a transitional phase, marked by high selectivity but stable underlying momentum. Residential property has never been more in focus than this year. Notably, international investors are now twice as active in this asset class compared with last year.

Capital from the U.S., France, Israel, Switzerland, and Scandinavia is flowing back into the market, often through medium-term, strategic investments. “Smart money is back in Berlin, and it is clearly targeting residential property as a stable, highly sought-after, and development-ready asset class,” says Benjamin Rogmans.