Market development in Berlin in August 2025: existing vs. new-build properties
In August 2025, Berlin’s real estate landscape continues to be multifaceted. Price developments for existing and new-build properties in particular illustrate the different dynamics of the two segments. It is important for investors, owners, and buyers to take a close look at the market. Only then can they make the right decisions.
Price development at a glance
According to current data from Guthmann Estate, the market for existing properties – i.e., residential properties that already exist – will see moderate growth of around 1.3% by July 2025. The new construction sector, on the other hand, is falling short of expectations. Despite a rising number of building permits, price growth for new construction projects is slowing down. This is due, among other things, to declining demand, increased construction costs, and a higher supply reserve, which are slowing down price increases.
Specific price levels in selected districts
Below you will find an overview of the current purchase and rental prices for existing and new-build properties in four central Berlin districts.
Charlottenburg
- Existing purchase price: €6,200/m²
- Existing rental price: €20.15/m²
- New construction purchase price: €11,050/m²
- New construction rental price: €25.00/m²
Wilmersdorf
- Existing purchase price: €6,540/m²
- Existing rental price: €20.00/m²
- New construction purchase price: €11,290/m²
- New construction rental price: €25.80/m²
Berlin-Mitte
- Existing purchase price: €8,100/m²
- Existing rental price: €22.65/m²
- New construction purchase price: €10,730/m²
- New construction rental price: €30.90/m²
Prenzlauer Berg
- Existing properties purchase price: €6,630/m²
- Existing properties rental price: €20.70/m²
- New construction purchase price: €7,540/m²
- New construction rental price: €24.95/m²
The figures show that in all districts, the purchase prices for new-build properties are significantly higher than those for existing properties. The price differences are particularly significant in Berlin-Mitte and the western districts such as Charlottenburg and Wilmersdorf. Rental prices follow a similar trend and reflect the high demand for modern forms of living. Berlin-Mitte tops the list with almost €31/m² in the new construction segment.
Note: The prices quoted are median values. These serve as a guide and may vary depending on the location of the property, its features, and other individual factors.
Background to current price developments
Several factors are shaping the current market situation:
- Rising construction costs: The costs of materials and labor have continued to rise in recent months. As a result, many project developers are being forced to delay or adjust planned new construction projects.
- Interest rate developments: The persistently high interest rate level is making it difficult to finance real estate purchases, especially in the new construction segment. This is having a dampening effect on purchasing power.
- Regulatory uncertainties: Discussions about rent regulation and new building regulations are causing investors and project developers to exercise caution.
- Regional demand: Despite all the challenges, Berlin’s continued attractiveness as a residential and business location is ensuring stable demand, especially in established locations such as Charlottenburg, Wilmersdorf, Berlin-Mitte, and Prenzlauer Berg.
- Supply reserve in new construction: The number of approved but not yet completed new construction projects has increased. This is leading to a temporary expansion of supply and thus limiting price growth in the new construction sector.
In August 2025, the Berlin real estate market will remain an attractive environment for real estate investments, but one that must be viewed in a differentiated manner. While existing properties continue to show stable value development, consolidation can be observed in the new construction segment. We recommend that buyers and investors carefully analyze the respective location and property parameters.
Individual advice for your real estate investment
Would you like to learn more about current developments in the Berlin real estate market, or are you considering purchasing a property in Berlin? The Victor Investment team is at your disposal with comprehensive advice, regional expertise, and customized service. Arrange a personal consultation to develop the right strategy for your real estate investment: Contact us now!