As Managing Director of Black Label Immobilien, I would like to keep you up to date on the Berlin property market in 2024. Together with my team, we regularly analyse developments and trends in order to provide you with sound insights and practical recommendations. The current IVD market report provides a valuable basis for this, which I would like to share with you in this article.
The Berlin property market continued to attract a lot of attention in 2024 - and will undoubtedly continue to do so in 2025. The new market report from the German Property Federation (IVD) was particularly interesting and worth reading this year. Why is this important for you as a property enthusiast? This report provides the real figures: What was really sold, and what rents were actually paid?
The press has picked up on this report, as it represents a well-founded counterweight to many sensationalist headlines from supposed "experts". If you want to know what is really happening in your district, you cannot avoid this association report. It is the tool that good Berlin estate agents and experts use to make well-founded property appraisals.
IVD Property Price Service Berlin 2024
As a property owner, potential buyer or landlord, you benefit directly from this aggregated knowledge. You can view the report here:
Three key findings from the IVD Market Report 2024
1. rents are stable - no "explosion" in sight
One major issue is the stability of rents. Contrary to frightening forecasts, there were only marginal rent increases in existing properties in 2024. Around 90% of Berlin's tenant households are affected by the strict regulations, which keeps their housing costs stable. At first glance, this may seem like good news for tenants, but it makes it much more difficult to find accommodation. Hardly anyone moves out unless they leave Berlin or buy their own property.
The few flats that became available were often sold, as renting under current conditions is a loss-making business for many owners. Old properties in particular often require expensive refurbishment in order to fulfil legal requirements. Only new-build flats are seeing new contract rents rise - albeit only moderately.
2. purchase prices stabilise with an upward trend
Despite numerous crises - from inflation and the energy crisis to the economic downturn - housing prices in Berlin have remained stable. The dramatic price falls predicted by some experts did not materialise. Although there were minor markdowns of a maximum of 5-10% depending on location and condition, it was generally possible to sell reputably valued properties within 12 weeks at prices in line with the market.
A decisive factor: many property developers have withdrawn from the market instead of lowering prices. What is still on the market is being sold - a trend that is likely to continue.
3. transaction figures remain low
In a city with 3.5 million inhabitants and around 2 million flats, there were fewer than 10,000 property sales in 2024 - this corresponds to less than 0.5% of all flats. These low transaction figures are striking in an international comparison and show how restricted the market is in Berlin. Nevertheless, there were slight increases that indicate a gradual stabilisation.
My advice for you
If you want to live in Berlin for the long term, you should consider buying a property. Don't try to depress the price of a fairly valued property unnecessarily - the demand for housing is enormous and another prospective buyer will snap it up.
Bureaucratic relief and falling construction costs are so far only distant hopes. Letting also remains strictly regulated, as the recent extension of the rent cap shows. Market conditions are not expected to change fundamentally in 2025. Prices could rise moderately, while new construction will continue to stagnate.
If you have any questions or would like professional advice, we will be happy to assist you. Take the opportunity to understand the Berlin property market with expert insight and make the right decision.
