Berlin – “The top market for real estate investment”
City overview
Germany's capital city, with a population of more than 3.7 million, is the second most populous city in the European Union. According to a report by PWC and the Urban Land Institute, Berlin was named the top market for real estate investment and development for three years in a row (2016-18).
With around 40,000 business registrations and more than 500 startup companies each year, Berlin is undisputedly Germany's founder capital and is expanding its nationwide lead. The capital is particularly appealing to founders in the creative sectors and technology, thanks to much lower real estate costs and office expenses than other major European cities. Berlin attracts young and highly qualified people from all over the world. Roughly 40 percent of its residents are younger than 35. The high quality of life with comparably low living costs, eclectic nightlife and international environment are the reasons why a lot of international entrepreneurs, creatives and venture capitalists decide to call Berlin their second home.
People from more than 190 countries make this city a truly international metropolis. 711,000 foreign nationals were registered in Berlin at the end of 2017, with an increase of 55,000 every year.
Real estate market trends & outlook
Berlin has a huge potential to grow into a new digital, technology and service hub, that connects with many other major hubs around the world. 250,000 jobs were created in the last decade, while the government's extensive regeneration campaign could lead to additional 400,000 new residents by 2030. Unemployment rates has dropped by 4% and reached record lows.
Berlin remains as the city with the highest real estate purchase price growth rates for condominium apartments since 2008. Even though, the growth of property purchase prices has slowed down, the growth rate is still 9.1% year-on-year with an asking price of around €4,000/sqm in the first half of 2018. Buying single-family homes in Berlin cost about €658,681 on average, an increase of 5.7% compared to previous year. Rental prices for apartments/houses in Berlin also grew by 9.1% year-on-year to their current level of €11.65/sqm/month in the first half of 2018.
Berlin real estate market is also becoming more and more competitive. Berlin's severe housing deficit, paired with a strong demand due to continual population growth, is a strong indicator for a bullish property market outlook. Coupled with low vacancy rates (1.2%) and low homeownership rate (14%), rent revenue will continue to rise, and real estate owners in Berlin can also make a significant capital gain when reselling. If you are living abroad but are also looking for a second home in Berlin, this is a great time to buy an apartment, as Berlin property prices are expected to continue to rise.
We’ve partnered up with multiple property listing pages and real estate agents to help you find a home. For instance, if you’re planning to buy a property in Berlin, particularly new build real estate, neubau kompass is a great site to check out!
How prices are growing in
major German cities?
Germany's strong economic growth has resulted in price increases across German cities: On average the prices doubled in the last 10 years. Rents also follow the house price development in Germany: the average increase amounts to 50% between 2008 and 2018.
The average annual Berlin property prices per square meter has increased from €1,600 in 2008 to €4,000 in 2018. Meanwhile, the average rent prices for apartments in Berlin per square meter also increased from €5.90 in 2008 to €11.65 in 2018.
About us
LoanLink24 is a german mortgage broker specialized in the Berlin real estate market. We also help expats and foreign investors get a mortgage. Our highly professional Berlin mortgage broker team provides excellent advices in English and German. Moreover, we leveraged advanced algorithm technology to find the best mortgage interest rates from over 400 regional and global German banks.
Our smart online mortgage platform is available round the clock to advise you throughout the German mortgage process. For instance, you can use our home loan calculator to check your loan amount and monthly repayments. What’s more, our service is in English and is completely free of charge.
LoanLink24 is registered and controlled by the surveillance authority in Berlin.
Got a question or a complex situation?
Our friendly home loan experts are happy to support you in finding a mortgage in Berlin. Call us on 0800 05 28000 or email us at service@loanlink24.com
How it works
More information on mortgages in Berlin
Can’t find what you’re looking for here? We’ve got more answers on our FAQs page.
When buying a property in Berlin, you always have to pay for additional fees, such as real estate tax, real estate agent fees, notary costs etc. In Germany, real estate purchase fees may be up to 15% of the property’s purchase price. Similar to a downpayment, purchase fees should be covered by the buyer’s own equity instead of a bank mortgage. In Berlin, the approximate additional purchase fees are as follow:
Real estate tax: 6%
Real estate agent fees: 7.14%
Notary costs: 2%
Total costs: 15.14%
For more information in regards to the additional fees you would pay when buying a property in Berlin, please check out our mortgage calculators for a more accurate calculation. For more information in regards to the additional closing costs you would pay when buying apartment in Berlin, please check out our closing costs calculator for a more accurate estimation.
First, the exact amount of your deposit depends on if you live and work in Germany.
I live and work in Germany:
You can borrow up to 100% of the property price. Overall, your deposit should cover the purchase fees, which will depend on the property’s location in Germany. Usually purchase fees are between 5-15% of the property price. Such fees include: stamp duty, notary fees and real estate agent tax.
I do not work in Germany:
Generally, you can borrow up to 60% of the property price. So, your deposit should cover 40% of the property purchase price as well as the purchase fees (5-15% of property price). As shown above, these fees include stamp duty, notary fees and real estate agent tax.
LoanLink24’s mortgage affordability calculator is tailored to buyers of different residency status to work out how much house they can afford in Berlin. By simply inputting a few numbers, you will find out your maximum affordability within seconds.
Altogether, the timeline depends on you. If you have all relevant documents ready the process can take only a few days. In case you want to be covered as fast as possible, please let us know. We have direct relationships to the credit departments of our partner banks and can accelerate the process.
As soon as you decide to buy, there are several good resources for locating a property in Berlin. A few of the most common resources are the major residential real estate pages like immobilienscout24.de or immowelt.de. If you are specifically looking for newly built apartments, real estate agency Berlin, such as neubau kompass, has an extensive list of new built properties.
Additionally, you can approach local real estate agents or the construction company. Also, please approach us. We have partners in Frankfurt, Berlin, Munich, Hamburg or Stuttgart who are ready to help.
Once you decide to purchase property in Berlin, contact the LoanLink24 Berlin Mortgage brokers via live chat, email or phone. Whenever you have a spare minute, you can also read our German mortgage blog to learn more.
property in Germany
Get the Loanlink24 guide of buying
property in Berlin
Buying a home is complicated and stressful - even for German native speakers. And given that real estate market in Berlin is very competitive, time is key to securing your dream home. Therefore, we’ve created a comprehensive and easy-to-understand guide for you to learn more about the process of buying property in Berlin: