Just a few months ago, prospective buyers could hope that property financing would become cheaper again. This hope is currently suffering a significant blow: interest rates for property loans are rising again, and with the recent European Central Bank interest rate hike the situation has worsened once again. Anyone looking to buy a flat or a house in Berlin or Potsdam today is therefore faced with a difficult question: buy now or wait a bit longer?
Wait and see sounds sensible at first. We are still in a buyer's market: more choice, longer selling times, negotiable prices. So why not wait another year and bet on prices falling further? Because when buying property, the purchase price isn't the only deciding factor – at least as important is the price of the borrowed money. And that is currently rising again.
Interest rates are rising and 5 % is no longer unthinkable
On 10 September 2026 the ECB has its Base rates increased by a further 0.25 percentage points. Interest rates for ten-year mortgage financing are now back at around 4 % (Source: Dr Klein). Whether they will continue to rise to 5 % cannot be reliably predicted, but it should not be ruled out.
Source Interest rates for property financing (10-year fixed interest rate), 2006–2026, full-year averages. Source: baufivergleich.de, Dr. Klein, Interhyp (as of 10.09.2026)
For you as a buyer, a different question matters more: Are you willing to gamble your purchasing decision on financing being cheaper in a year?
An example calculation shows what is at stake. With financing of 400,000 euros and an initial repayment rate of 2 %, the monthly instalment at an interest rate of 4 % is around 2,000 euros, and at 5 % it is already around 2,333 euros – 333 euros more per month, or around 4,000 euros a year.
An apartment that costs 20,000 euros less in a year's time might not actually be cheaper if financing is more expensive at the same time. Purchase price and financing must therefore always be considered together.
The advantage that buyers have right now
Rising interest rates would be a bigger problem if the market were overheating at the same time. It isn't. Supply is large, properties are remaining on the market longer, and many sellers have to engage with buyers' actual willingness to pay. They can compare things, examine documentation at their leisure – and do not simply have to accept an asking price.
The perfect time would be simple: low prices, low interest rates, plenty of choice, little competition. Only rarely do these conditions occur simultaneously – and no one can reliably predict when. If interest rates eventually drop significantly again, some of the waiting buyers are likely to return; demand will pick up, and today's scope for negotiation will diminish.
It is not possible to reliably quantify how long the current window of opportunity will remain open – a few months, perhaps a year or two. More crucial than trying to catch the lowest interest rate or price (which, in any case, is only recognisable in hindsight) is therefore a different question: Can you find a property today that suits you, can it be solidly financed, and is the price negotiable? If so, postponing the purchase simply in the hope of better times can prove costly.
Buy now – but not at any price
Rising interest rates are no reason for hasty decisions. A bad property does not become better due to the prospect of 5 % interest, an inflated purchase price does not become more sensible, and a tightly calculated financing arrangement does not become more solid. However, continuously waiting is also a decision – and it can cost money.
Whoever is looking to buy property anyway, has sufficient equity and can afford the repayments in the long term, should take advantage of the current buyers' market: Search now, calculate precisely, negotiate persistently. Because interest rates are already rising – nobody knows how far. Buyers currently have something they have lacked for a long time: choice and bargaining power.
That could be worth more than waiting for the supposedly perfect moment.
Do you want to buy a property in Berlin or Potsdam?
The Black Label Real Estate Team help you determine your realistic budget, assess asking prices and identify room for negotiation – not based on general market data, but on the specific location, property and your situation. Because it is not about timing any old market, but about soundly financing the right property at the right price.
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