4 min read
25. April 2025

Transaction volume for residential & commercial buildings increases

New GAA data show: The multi-family segment up to €20 million is a clear market driver in 2025.

Sunlit street of pale buildings with a black-railed balcony on the left and a blooming cherry tree on the right.

Berlin | The market for residential and commercial buildings in Berlin is experiencing strong growth for properties up to €20 million. In the first quarter of 2025, residential and commercial buildings up to €20 million were traded at a volume of around €400 million (Q1 2024: €291 million). This significant increase corresponds to 148 properties compared with 129 properties in the same quarter of the previous year. In contrast, revenue from large-volume transactions above €50 million fell sharply from €360 million to €64 million, which is also reflected in the total turnover: total revenue in Q1 amounts to €591.2 million (Q1 2024: €769.2 million). These figures are based on the latest data from the Gutachterausschuss Berlin, available exclusively to Engel & Völkers Commercial Berlin.

Table of Content

Smaller properties dominate the market
Fewer large transactions
Looking ahead
Conclusion

Smaller properties dominate the market

“The high transaction volume for residential and commercial buildings up to €20 million shows that this segment has both active sellers and a very diversified buyer group. Overall, the Berlin transaction market is significantly more active compared to the previous year,” explains Benjamin Rogmans, Managing Director and Head of Investment for Residential and Commercial Buildings at Engel & Völkers Commercial Berlin.

Fewer large transactions

In contrast, there is a decline in large-volume transactions above €50 million. While two major transactions totaling €360.8 million were completed in the first quarter of 2024, there was only one large transaction with a volume of €64 million in the first quarter of 2025 – a decrease of 82.3%. This illustrates how dependent this market segment is on just a few deals. However, the decline compared to the same quarter last year does not reflect actual market sentiment. Demand for large-volume investment opportunities remains high, and institutional investors have ample capital. The limitation continues to be the insufficient availability of suitable properties to meet this demand.

Looking ahead

“The Berlin residential investment market in 2025 is showing more dynamism than in 2024. Properties in the €2.5 to €5.0 million range are increasingly in demand, reflected both in purchase prices and in the number of transactions. Large-volume investments are also being sought by many buyers. We expect a very positive business year for Engel & Völkers Commercial Berlin and anticipate growing demand from institutional investors – particularly from Anglo-American markets,” summarizes Benjamin Rogmans.

Conclusion

2025 begins with a trend opposite to that of the previous year. While larger properties and major transactions dominated the market in 2024, the first quarter of 2025 is characterized primarily by smaller properties with rising prices per square meter. The momentum in the smaller segments indicates that total transaction volume is likely to increase over the course of the year.