INVEST IN BERLIN

Official planning targets require 222,000 new homes by 2040, yet permissions have slowed, falling by 38% in 2024 vs 2023 while completions continue below need. This pipeline bottleneck supports sustained rent and price growth.

Berlin asking rents have risen sharply in recent years - with the average at €15.79/sqm/month in 2024 and stronger rental levels in new build stock (often €20+/sqm).

This supports income-oriented investment returns.

New-build condos in Berlin command a +37% premium over overall asking prices, reflecting strong demand for modern, high-quality stock. Investors see pricing power in product design and location.

Berlin’s economy has expanded beyond government and services into tech, life sciences, creative, manufacturing and finance sectors, with global firms and start-ups clustered around the city, reducing cyclical risk and underpinning workforce demand.

Berlin is recognized by large institutional investors and REITs as a core European residential market, with increasing allocations into living assets, signalling confidence in long-term fundamentals and liquidity.

Germany is Europe’s largest economy, generating a GDP of $5.01 trillion in 2025 making it also the third largest economy in the world behind China and the US; a stability and security that most global cities cannot match.

Berlin officially needs 222,000 new homes by 2040 yet new build permits fell by 40.6% in 2024 meaning future delivery will severely lag demand. The next few years will see Berlin’s worst bottleneck yet hit the property market, underpinning long-term rent and price pressure.

Berlin’s population is approaching 3.9 million, driven by domestic and international migration. Demand is driven by jobs, students and global talent, not speculative buyers which makes a critical difference to the stability of its property market. By 2040 its population will have tipped 4 million.

New-build homes are largely exempt from Germany’s rent-brake rules, giving investors pricing flexibility that older stock does not enjoy, a major differentiator versus cities like Paris or Amsterdam.

Berlin asking rents have risen by 50% since 2019, one of the strongest growth rates among major European cities, while still remaining below London and Paris in absolute terms. Investors should take note that this means there is still plenty of room for growth.

Berlin offers investors NO capital gains tax on apartments sold after 10 years of ownership, a major draw that no other European capital offers. CGT is 0% after 10 years, it applies to all private individuals, regardless of residency and remains one of the clearest and strongest regimes in Europe.

Despite rapid growth, new-build prices remain materially below London, Paris, Amsterdam, Zurich and many US gateway cities, offering relative value. Berlin is 15-20% cheaper per sqm than Paris and 10-15% cheaper than London which can translate into higher net yields and growth over time.