Does it Make Sense to Buy an Apartment in Berlin?

Berlin is a very liveable German city. It’s one of the happiest cities in the world. As the capital of Germany, the attitude towards life in Berlin keeps attracting more foreigners.

A lot of companies have their headquarters in Berlin. This is because the city keeps growing by the day. Germany’s capital attracts young professionals from across the globe.

What is real estate like in Berlin? Is it worth buying an apartment in this city? These will be fully discussed in this guide. Read on.

A Glance at Berlin’s Real Estate

The real estate market in Germany varies in different cities. Every area in Germany has its unique features. Acquiring an apartment here also has different conditions. Prices also vary. Whether you want to buy or rent a property in Germany, there are different restrictions.

If you desire to own property in a European city, then Germany is a great place to choose. Among the best spots in Germany for real estate is Berlin.

After merging the East with the West, properties in Berlin are gradually becoming the real deal of the century. You have several options to explore. These properties range from one-bedroom apartments to big apartment blocks. 

Why Real Estate in Berlin is a Great Choice ?

Is buying a property in Berlin worth it? Here are six reasons why you need to buy an apartment in Berlin.

Top European city

Germany remains the second country worldwide with the highest trade turnover. It also has the biggest gross domestic product in the EU. Berlin, being its capital, is a leading city in Europe.

Berlin is a city of international carnivals and festivals. It’s known for business conferences and exhibitions. Berlin is a city of museums and collections. The city blends antique monuments with modern architecture. After London and Paris, Berlin was ranked third in 2008 (for European cities and future religions). The rating was conducted by fDi Intelligence magazine. 

Prices are low 

The cost of buying properties in Berlin was ridiculously low between 1991 and 2000. This had a direct connection with the history of Berlin. It has to do with the terrible reunification and its partition following the destruction of the city’s wall when it fell. 

However things changed since that time and the city is now enjoying a strong momentum both on economic and demographic sides.

In Berlin, the capital of Germany, the  square meter costs today about 5500 euros per sqm, which is a medium price. Compare this to the price in Paris twice as high. In London, you would end up paying 3 times the price of the similar flat in Berlin. That’s ridiculous! Isn’t it? That’s one of the reasons more investors and buyers are attracted to real estate in Berlin. The property market keeps increasing annually due to the huge housing shortage especially in central areas such as Mitte, Prenzlauer Berg, Kreuzbeg, Schöneberg, Charlottenburg and Friedrichshain.

Safe investment 

German law is stable. This makes investments here safer. This is also typical of the Berlin real estate market. The market is highly stable and offers safety for investments. 

Investment risks are reduced when there is reliable legislation. The same is possible for a stable economy. For up to a century now, laws relating to owning and purchasing properties in Germany have remained stable. Both buyers and vendors are protected by German legislation. There is no cheating. Risk is also reduced to zero. 

Good return on investment  

Buying an apartment in Berlin offers you high returns. Studies show that among the citizens of Berlin, only twenty percent live in their apartments. Others rent the apartments they live in.

Also, all over the nation, the number of citizens who own their apartments is roughly 43 percent. This should tell you something. Owning an apartment in Berlin has great potential for yielding a good profit. Foreign investors keep buying more German properties, especially in most sought-after areas like Mitte, Prenzlauer Berg, Friedrichshain, Schöneberg and Charlotteburg.

The German legislation is fair toward foreigners

German legislation favors foreigners. No matter where you are from, you can buy properties, whether commercial or residential. There is no restriction to this. Also, real estate can be purchased by a legal or natural person. All you need to buy a property in Germany is money and a passport! 

Potential for capital growth 

The population of Berlin keeps increasing every year. This also makes the demand for properties in the city high. Price growth also comes into effect. 

Experts say the price will double every five years. There has been a boom in the real estate market in recent years. Different factors contribute to Berlin properties’ high capital growth potential. In this view, Also, with the tremendous demand for properties, you will probably cash in on its potential for capital growth when selling a property in Berlin. In this view the German tax rules are quite advantageous as you can sell the property with full tax exemption after 10 years of ownership. This represents a major advantage for property sellers and a major factor to take into account for property value assessment in Berlin


As you can see, you will probably get more returns from your investments in Berlin properties than in any other city in Europe and benefit from the safety of investment in Germany. Prices are low compared to other leading European capitals so there is still a  huge profit potential .  The government’s legislation favors all buyers whether they are locals or foreigners.  Finally, you can reach out to an English-speaking real estate agent to help out choosing the area where you would like to buy, selecting the right property and to walk you throughout the purchase process in Germany. Some real estate agencies such as First Citiz Berlin offer English-speaking services and manage for you the overall process from A to Z.