According to the latest data from Berlin's Institute for Real Estate Market Research (IBB), advertised rental prices in the German capital have stopped rising for the first time in years. In the fourth quarter of 2025, the average rent was 14.80 euros per square meter, remaining at the same level as the previous quarter. At the same time, property prices continue to rise, reaching an average of 6,150 euros per square meter. The number of building permits issued has also increased, which may indicate an improvement in supply on the tight market.
Stagnation of advertised rental prices
The average rent in Berlin remained at 14.80 euros per square meter in the fourth quarter of 2025, marking a halt to the long-term upward trend. This is the first such situation in years.
Increase in property prices
In contrast to the rental market, transaction prices for owner-occupied apartments continue to rise, reaching an average of 6,150 euros per square meter. This is a 1.5% increase compared to the previous quarter.
More building permits
The number of building permits issued for apartments in Berlin increased by 14% in 2025 compared to the previous year, reaching 16,500. This is a positive signal for increasing the supply of new units.
Differences between districts
The stagnation in rental prices is not uniform across the city. In central districts such as Mitte, Prenzlauer Berg, and Friedrichshain, prices are still rising, while in outer districts like Marzahn-Hellersdorf, declines have been recorded.
Berlin's housing market is experiencing a significant trend change after years of dynamic price increases. According to data from the Institute for Real Estate Market Research of Berlin and Brandenburg (IBB) for the fourth quarter of 2025, average advertised rental prices remained at 14.80 euros per square meter. This marks a halt to the long-term, strong upward trend that had been a source of social tensions in the German capital for years. Experts at the institute indicate that the stagnation may result from several factors, including an increased supply of new apartments due to a higher number of building permits and a certain market saturation where prices have reached a threshold level for many potential tenants. Since the political transformation and the relocation of the capital from Bonn, Berlin's housing market has experienced a prolonged boom, driven by population influx and limited supply. Between 2010 and 2022, rental prices increased by an average of over 80%, leading to the introduction in 2020 of the controversial, and later repealed, rent freeze law (Mietendeckel). In contrast to the rental market, the property ownership segment shows no signs of cooling. The average transaction price per square meter increased by 1.5% quarter-on-quarter, reaching 6,150 euros. This data confirms the continued high investment demand pressure on real estate in Berlin. At the same time, the number of building permits issued for new apartments in 2025 was 16,500, representing a 14% increase compared to the previous year. This increase in supply, if sustained in the coming years, could be a key factor stabilizing the market in the longer term. An analysis of the situation in individual city districts shows a varied picture. In central and trendy districts such as Mitte, Prenzlauer Berg, and Friedrichshain, rental prices are still recording slight increases. Meanwhile, in peripheral districts, for example in Marzahn-Hellersdorf, declines in advertised prices have already been recorded. This polarization indicates that the process of stabilization or correction will not be uniform across the entire city. IBB experts remain cautious in their forecasts, emphasizing that the current stagnation may only be a temporary pause in the long-term trend, especially in the context of still high migration to the capital and limited space for new investments. The coming quarters will show whether this is a permanent change in the market's dynamics.