Capital: Berlin
Berlin
Berlin is Germany's capital and largest city, known for its vibrant culture and growing tech scene.
- Last updated:
- Editorially reviewed
- Transfer Tax
- 6.0%
- €18,000 on €300,000
- Asking price/m² (median)
- €5,671
- Cold rent/m² (median)
- €19.17
- Gross rental yield (median)
- 4.1%
- No. 7 of 16 states
Asking prices and rents from online listings for apartments, as of November 3, 2026. Not notarised sale prices.
Berlin is Germany's capital and, with about 3.7 million residents (end of 2025), its largest city. According to the city's valuation board (Gutachterausschuss), median prices for condominiums rose by about 5 % in 2025 after a slight fall in 2024. The property transfer tax rate is 6.0 %.
Real Estate Market
The population grew by 0.4 % in 2025 because more people moved to Berlin than left. The Senate classifies the entire city as a tight housing market. The stock ranges from pre-war Altbau apartments in Charlottenburg to new builds in Europacity next to the main station, and rents and prices differ widely between districts.
- According to the Berlin-Brandenburg statistics office, the population grew by about 15,300 in 2025
- Because the housing market is classified as tight, the Mietpreisbremse (rent brake) applies across all of Berlin until the end of 2029
Transfer Tax Details
Berlin has charged a property transfer tax (Grunderwerbsteuer) of 6.0 % since 1 January 2014. Only Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein charge more, at 6.5 %. On a 400,000 euro apartment purchase, the tax comes to 24,000 euros. For returns in Berlin, rent regulation matters as much as the tax: the Mietpreisbremse, the cap on rent increases (Kappungsgrenze) and the ban on misuse of housing (Zweckentfremdungsverbot) apply across the whole city.
Investment Cities
As a city-state, Berlin has twelve districts rather than separate cities. According to the IBB housing market report 2025, their median asking rents differ considerably.
- Mitte and Prenzlauer Berg: Mitte had the highest median asking rents of the twelve districts in 2025. Prenzlauer Berg is an Altbau neighborhood in the Pankow district, where asking rents were also above the Berlin figure
- Neukölln and Wedding: Altbau neighborhoods close to the center. The Neukölln district's median asking rents were below the Berlin figure in 2025, and Wedding belongs to the Mitte district
- Pankow and Lichtenberg: Districts in the northeast and east. In 2025 asking rents in Pankow were above the Berlin figure and those in Lichtenberg below it
- Spandau and Marzahn: Outer districts in the west and east. Marzahn-Hellersdorf had Berlin's lowest median asking rents in 2025, Spandau the second lowest
Frequently Asked Questions
What is the property transfer tax in Berlin?
Berlin's Grunderwerbsteuer is 6.0 % of the purchase price. The rate has applied since 1 January 2014; before that it was 5 %. It is above the average of the federal states, and only four states charge more, at 6.5 %.
How does Berlin's rent control affect investors?
The Mietpreisbremse applies across all of Berlin until the end of 2029 whenever you re-let an apartment: the new rent may be at most 10 % above the local comparative rent, except for apartments first used and let after 1 October 2014 and the first letting after a comprehensive modernization. Rent increases in existing tenancies fall under a different rule, the Kappungsgrenze, which in Berlin limits them to 15 % in three years until May 2028. Calculate your yield with the rent the law allows.
Is Berlin still affordable compared to other European capitals?
We do not give officially comparable figures for other European capitals here. Within Germany, new condominiums in Berlin are about a fifth cheaper than in Munich. Prices did rise again in 2025, by about 5 % on the previous year.
Cities with the highest yield in Berlin
Gross rental yield of cities with at least 30 listings for sale.
Major cities in Berlin
Check an apartment in Berlin
A city's median says little about a single apartment. Enter the address, price and rent to see cash flow, net yield and taxes.