The Berlin market for residential and commercial buildings experienced a noticeably increased level of activity in the first half of 2026. Figures presented by the expert committee confirm an increase in transactions, a higher average transaction volume, and a particularly strong second quarter. In parallel, following the elections for the Berlin House of Representatives, the question of future political frameworks for construction projects, investments, and modernisations is moving to the forefront of considerations.
Market Development and Transaction Volume
After a subdued first quarter of 2026, the second quarter developed with significantly more dynamism. The number of sales rose significantly from 125 to 168 transactions. The sales volume in this period increased from approximately EUR 411 million to around EUR 775 million. Similarly, the average volume per transaction grew from roughly EUR 3.3 million to about EUR 4.6 million. Benjamin Rogmans, Managing Director and Head of Investment Residential and Commercial Buildings at Engel & Völkers Commercial Berlin, stated that this development indicated a meeting of minds between buyers and sellers. He highlighted that not only the number of deals was increasing, but also the average transaction sizes, which signalled robust confidence in the market.
Although the transaction volume of the first half-year initially appeared to be below the previous year's level, this is primarily due to fewer portfolio deals. The traditional Berlin apartment building market, however, remained consistent. Excluding portfolio transactions, a turnover of approximately EUR 1.19 billion was achieved, nearly reaching the previous year's level. Rogmans emphasised that an exclusive focus on the total volume would misinterpret the actual development, as the traditional market was functioning and price discovery had been completed in many cases. Residential use benefits from its long-term stability, while other commercial uses continue to be subject to structural changes.
Regional Distribution and Political Implications
The positive market development is no longer limited to isolated prime locations but is increasingly affecting various districts. Particularly high sales increases in the first half of 2026 were recorded in Spandau with a plus of 71.8 percent, Steglitz with 65.8 percent, Köpenick with 54.2 percent, Lichtenberg with 47.9 percent, and Reinickendorf with 44.1 percent. At the same time, Mitte, Tempelhof, and Prenzlauer Berg continue to be among Berlin's strongest investment locations by turnover. This broader distribution of investments across various Berlin sub-markets is considered a typical sign of market revitalisation, as investors increasingly seek opportunities outside core locations.
The election result for the Berlin House of Representatives marks the beginning of a new political phase for the real estate market. From the perspective of market participants, it will be crucial to see which housing and economic policy guidelines the future coalition implements. Benjamin Rogmans pointed out that decisions regarding new construction, modernisation, and investments for the coming years are of critical importance. The need for additional housing remains consistently high, while project developers and investors continue to face high construction costs, challenging financing conditions, and extensive regulatory requirements. According to Rogmans, Berlin's housing issue will not be solved by political positions, but by the creation of additional homes.
Regardless of the political constellation of the future Senate, the fundamental strengths of the location for existing investors remain intact. Berlin as a capital city, seat of government, and a scientific and start-up metropolis continues to attract talent, founders, investors, students, and skilled workers. These structural advantages are not affected by an election result. The current market data underscore the high stability of the Berlin apartment building market. More deals, rising average sizes, and broader market activity indicate a robust investment environment. Rogmans concluded that the decisive question is not whether investments will be made in Berlin, but under what conditions. The incoming government will have to prove whether its political frameworks keep pace with the economic realities of housing construction.
