Ranked among PwC’s top 3 European Cities For Real Estate Investment (2019-2023)

The most populous city in the European Union

Europe’s start-up hub – receiving EUR4.9B VC investment in 2022

Receive the latest insights and research on the Berlin real estate market by downloading the investment case below.

The Germany Investor Guide

It covers all the necessary legal and tax matters as well as all the information you need in relation to acquisition costs, holding costs and exit costs when you decide to sell.

Furthermore, you can expect guidance on the process of arranging mortgage finance as well as key information on lettings and management.

To simplify the complicated process, IP Global has produced a guide to the logistics of investing in German property.

Berlin: the Capital of Europe’s Economic Giant

Berlin is an international hub for business, innovation and politics. The city operates as Germany's centre for government, technology, education and culture. Over the last decade, employment growth in knowledge-based and future-oriented sectors has provided the city with a solid platform for continued sustainable economic growth.

The high-living standard at a relatively low cost and lively, diverse communities attract talented people from all over Germany and the world. The city is now one of the most important European startup hubs, fostered through multiple large-scale technology and science centres. Berlin has also attracted many global firms’ offices and has especially become a frontrunner in the technology industry.

As a result of Berlin's strong population and economic growth, housing demand has soared while supply levels have been unable to keep up. To support Berlin’s development, the Senate Department for Urban Development and the Environment established its Berlin 2030 strategy. The goal is to make Berlin even more economically robust, more attractive to businesses, more socially balanced, and to further enhance its international reputation.

Berlin in a Snapshot


Berlin has 3.68 million residents as of 2021 (+11% in the last 10 years) and continues to grow with an expected population well in excess of 4 million by 2030.

Housing Market

As housing demand continues to grow year after year, a projected shortfall of more than 40,000 units is expected to persist in 2035.


Berlin's GDP per capita is expected to reach EUR66,363 by 2035, an increase of 119% since 2009.

Five Reasons to Invest in Berlin

Berlin remains a key city within IP Global’s core investment strategy. Its housing market has performed exceptionally well for investors over the past several years, with house prices and rents seeing strong and steady growth. With a structurally undersupplied housing market, growing population and incomes, and a favourable tax regime for real estate investors, Berlin as an investment destination remains very hard to beat.

Over the five years leading up to 2021, Berlin's average condominium price surged by 65%*, surpassing the European average. The city's housing stock continues to face ongoing pressure due to supply constraints and consistently high levels of inward migration.

Berlin’s position as an international hub for business, innovation and politics has only strengthened as it proceeds to draw in significant investments focused on improving its advanced economy and infrastructure. With governments and private institutions redeveloping entire districts to create jobs and foster innovation, as well as provide adequate housing and living spaces, the inflow of highly skilled migrants is very likely to persist, boding for a strong real estate investment case.

Berlin is the most populous city in the EU, with 3.69 million residents as of 2020, and is expected to exceed 4 million by 2030. This growth will put it 2 million residents ahead of Germany's second-largest city, Hamburg. With 83% of Berliners living in rental properties, the swelling population has intensified pressure on the already strained housing stock, pushing rents higher. Those hoping to invest in Berlin have been eager to capitalise on this robust rental market.

Despite the increasing rents, Berlin remains a more affordable option for renters compared to other major German cities such as Munich, Frankfurt, and Stuttgart, as noted by Savills.

Since 2009, Berlin has generated over 420,000 new jobs, with nearly 50% stemming from the technology-based, knowledge-intensive business services sector. This growth can be partially attributed to Berlin's prowess as a thriving start-up capital and one of Europe's most dynamic start-up hubs. In 2020 alone, start-ups secured over EUR3 billion in venture capital (accounting for 58% of Germany's total) and created 40% of the nation's start-up jobs. Owing to the high quality of these new job opportunities, incomes in Berlin experienced an impressive 34% between 2009 and 2017.

It is expected that the Professional, Scientific & Technical Activities sector will be Berlin's most productive sector with a GVA totalling EUR19.5 billion by 2035, an increase of 124% since 2000. This sector has also seen the number of jobs rise from 110,000 to 211,500 in the last 20 years and is forecast to hit 249,000 by 2035, an increase of 125% over the entire period.

Berlin proudly showcases a premier academic landscape on a national scale, with its universities holding strong positions in the Times' global rankings. Humboldt Universität, Charité, and Freie Universität Berlin rank among Germany's top 10, while Technische Universität Berlin occupies the 14th spot. As Berlin's oldest and most esteemed institution, Humboldt University boasts a rich academic heritage, including renowned past professor Albert Einstein. Collectively, these four universities are home to over 100,000 students and 20,000 educators and researchers. In total, Berlin's higher education institutions engage more than 250,000 individuals in work, research, and study.

Moreover, Berlin's student population reflects the city's diversity, consistently ranking as the top destination for international students, who comprise approximately 20% of the total student body. Berlin also serves as a hub for technological innovation geared toward sustainable futures, positioning itself as a leader in science and research. Over 300 research groups in the city are actively engaged in projects aimed at creating a sustainable urban environment, exploring areas such as renewable energy, energy networks and storage, turbomachinery, and energy efficiency. Clean energy technology companies in Berlin employ around 60,500 individuals, generating an annual turnover of EUR 29 billion.

The economic and population growth in Berlin is projected to outpace supply until at least 2030, exacerbating the housing shortage and causing vacancy rates to plummet below 1%. As of 2020, the estimated housing deficit in Berlin amounted to approximately 80,000 units. Due to the structural nature of this undersupply, the shortfall is expected to persist beyond 2035. Consequently, average prices for top-tier apartments in Berlin experienced a 12% increase in 2021 alone, with prices in this segment having doubled since 2015.

Berlin stands out as one of Germany's most sustainable cities, consistently surpassing national objectives regarding renewable energy consumption. By 2025, the city aims to derive 70% of its energy needs from renewable sources, far exceeding the national target of 40%. Berlin's climate protection goals and corresponding strategies are embedded in the Berlin Energy Turnaround Act, legally enshrining the city's ambition to achieve climate neutrality by 2050.

With a ratio of 317 cars per 1,000 residents, Berlin boasts the lowest reliance on automobiles for regular transportation among German cities. Residents can conveniently navigate the city via underground and overground trains, trams, buses, and 620 km of dedicated cycle paths.

Berlin's climate protection strategy also emphasises e-mobility and the successful integration of various energy sectors. The city currently hosts the highest number of electric vehicle charging stations in Germany and plans to establish thousands more in the coming years. Over 270 local energy generation projects, more than 1,500 communal heating/power stations or micro power plants, and approximately 6,000 photovoltaic power plants underscore Berlin's pioneering role in this domain.

Insider Views | Wealth Management Director Grant Reynolds Revisits Germany

Grant Reynolds has been with IP Global for over 15 years. He's seen us enter 28 new cities and how the markets have evolved since our first few properties. Today, we interviewed him about his recent trip to Berlin and Leipzig, markets that continue to provide a compelling case for investment. Q1. How has Berlin […]

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Yes, Berlin continues to be a focal point in IP Global's investment strategy. Over the past few years, the city's housing market has delivered outstanding results for investors, exhibiting consistent and robust growth in both property prices and rental rates.

Berlin property is widely considered a good investment due to several factors, supported by the following statistics:

  1. Strong rental market: With 83% of Berliners living in rental properties, the expanding population intensifies pressure on the already strained housing stock, pushing rents higher. Investors have been eager to capitalise on this robust rental market.
  2. Strong property market: Berlin's prime property market experienced the most significant price growth in Europe at 6.5% in 2020. Owing to its robust fundamentals and widespread international appeal, the city also held the highest growth projection in Europe for 2021.
  3. Population growth: Berlin's population has grown by 11% in the last 10 years, reaching 3.68 million residents as of 2021. The city's population is expected to exceed 4 million by 2030, further increasing the demand for housing.
  4. Economic growth: Berlin's GDP per capita is forecasted to reach EUR 66,363 by 2035, an increase of 119% since 2009. This growth, driven by the technology-based, knowledge-intensive business services sector, attracts more people to the city, boosting housing demand.
  5. Housing undersupply: As housing demand and completions continue to grow at comparable rates year after year, a projected shortfall of more than 40,000 units is expected to persist in 2035. This undersupply fuels the increase in property prices.

Yes, foreigners can buy property in Berlin with the expressed purpose of renting it out. There are no specific restrictions on foreign property ownership in Germany, which allows international investors to participate in the city's real estate market.

Yes, property prices in Berlin are rising. Over the five years leading up to 2021, Berlin's average condominium price increased by 65%, surpassing the European average. The demand for housing in Berlin continues to grow, resulting in an undersupplied market and increasing property prices. For example, average prices for top-tier apartments in Berlin experienced a 12% increase in 2021 alone, with prices in this segment having doubled since 2015.

The best places to invest in property in Berlin can vary depending on the investor's objectives, such as rental yield, the potential for capital growth, or a combination of both. However, some popular neighbourhoods and districts known for their promising investment potential include:

  1. Mitte: Located in the heart of the city, Mitte is home to many historical sites, government buildings, and cultural attractions. It attracts both tourists and professionals, making it a great location for short-term and long-term rentals.
  2. Prenzlauer Berg: This trendy district in the northeast is popular among young professionals, artists, and families. With its abundance of cafes, bars, and boutiques, Prenzlauer Berg offers a lively atmosphere and strong rental demand.
  3. Friedrichshain: As an up-and-coming district, Friedrichshain has witnessed significant gentrification in recent years. It is known for its vibrant arts scene and nightlife, making it an attractive location for young tenants and potential for capital appreciation.
  4. Kreuzberg: A diverse and culturally rich neighbourhood, Kreuzberg is popular among students, young professionals, and artists. Its central location and unique charm contribute to a strong rental market.
  5. Charlottenburg-Wilmersdorf: This affluent district in the west offers a mix of upscale residential areas and commercial zones. Properties in this area can provide stable rental income and potential for capital growth, particularly around new developments and transport hubs.

Our properties in Berlin

Yves Quarter


Yves Quarter is a tasteful conversion with an added new build element in Berlin’s Köpenick neighbourhood. The one & two bedroom apartments offer access to a communal landscaped courtyard, as well as the benefit of private balconies or terraces.

From eur 325,000

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The Ambassador


The residential tower is ideally positioned in the district of Mitte, otherwise known as the birthplace of...

From eur 210,000

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Einbecker 47


Consisting of studio and one-bedroom units, Einbecker 47 is a modern residence developed with the area's university...

From eur 166,000

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Download our in-depth timeline on Berlin’s thriving economy, large-scale regenerative projects and flourishing housing market throughout the years.

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