An article by Achim Amann, Managing Director of Black Label Immobilien
When buying a home, one thing is particularly important: your own budget. If you have over a million euros in your pocket today, you can still choose your dream flat in Berlin. But that has become the exception. I have been observing for years that the number of buyers with such high financial resources is falling sharply - mainly due to the rise in interest rates.
Of course, a lot depends on where you want to buy. In Charlottenburg, Prenzlauer Berg or Mitte, the price level for well-designed large family flats starts at over one million euros. Detached houses in the south-west of Berlin start at around 1.2 million euros. If you want to afford a chic house in Grunewald, you can expect to pay at least three million euros.
The majority are looking for affordable property - and have equity of between 100,000 and 200,000 euros. However, the reality is quite different for most people: Couples, young families and employees who come to us usually have equity of between 100,000 and 200,000 euros. They are looking for flats between 500,000 and up to one million euros - preferably with four rooms, 80 to 100 square metres, a balcony or terrace, underground parking and a lift.Â
But it is precisely these flats that are in high demand and rarely visible to the public. We sell many of these properties directly - via our website, newsletters or social media - often to existing customers. Those who only look at property portals miss out on many opportunities.
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My advice: start early, start small, build up assets
I would advise young people or couples in particular: don't wait for the perfect flat. Buy a smaller condominium early, enter the market and start building wealth. In Berlin, there are flats for between 150,000 and 500,000 euros - depending on location and condition.
For example, if you borrow 100,000 euros from the bank, you will pay around 6,000 euros a year at four per cent interest and two per cent repayment - i.e. around 500 euros a month. If you can finance 200,000 euros for two people and pay the ancillary purchase costs out of your own pocket, you can afford a small first home.
Those who are well prepared have the better cards
It is important to be prepared: Confirmation of financing, a clear budget, clean documents. Because in the end, three things often count when it comes to winning the bid:
- Who can buy the fastest?
- Who has the best credit rating?
- And who pays the best price?
However, I would advise against getting drawn into a competition for the highest price. Only buy if you can afford the loan in the long term.
Keep an open mind: it's not just the trendy neighbourhoods that offer opportunities
In city centre locations, supply is limited - and competition is fierce. If you are prepared to expand your radius, you can also find attractive flats at better conditions in peripheral locations or less sought-after neighbourhoods. Especially when renting, thinking outside the box can save you money.
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My conclusion
The property market has changed - but this also opens up new opportunities. If you are honest with yourself, have your finances under control and are actively looking, you can still realise your dream of owning a property today. We will be happy to accompany you on this path - and help you to find not just any property, but the right one.
Information on this can also be found in my Interview with the FAZ from July 2025
FAQ
What is the minimum amount of equity I need to buy a flat in Berlin?
You should be able to raise at least around 20 % of the purchase price and the ancillary purchase costs (notary, land transfer tax, estate agent if applicable) yourself. In practice, this means that for a flat costing 500,000 euros, 100,000 to 150,000 euros of equity is realistic.
More information
Which Berlin neighbourhoods currently still offer good value for money for families?
Neighbourhoods such as Lichtenberg, Reinickendorf, Pankow (except Prenzlauer Berg), Neukölln (peripheral areas), Tempelhof or Spandau often still offer family-friendly flats with good transport links and a little more living space for the money.
How do I find properties that do not appear publicly on property portals?
Is it worth buying a smaller flat as an investment to get started?
How do the current interest rates actually affect my monthly repayments?
Example: With a loan of 200,000 euros, four per cent interest and two per cent repayment, you will pay around 1,000 euros per month. However, the exact amount depends on the term, equity, fixed interest rate and your creditworthiness - financial advice is therefore essential
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