The latest BNP H1 2026 Residential Report shows that Germay’s housing shortage continues to reinforce the stability and growth potential of residential property, with Berlin leading the market.

0.3% Vacancy and Rental Performance

Berlin remains the most competitive housing market in Europe, with the vacancy rate of 0.3% citywide, reflecting a nationwide housing shortage that drives rental demand up while supply remains severely restricted.

Based on this low supply the median new-build asking rents have reached €20.50 per square metre, marking 56% increase in new-build rental values compared to 2017 levels and demonstrating sustained upward pressure on yields.

Capital Values and Transaction Volume



For property ownership, pricing for premium assets remains resilient. The median asking price for new-build condominiums holds firm at €8,060 per square metre.

Buyers demand for Berlin's real estate market remains strong relative to other major German cities. Berlin recorded €599 million in residential transaction volume in the first half of the year alone—the highest volume among all major German cities. This high level of transaction activity confirms the market's ongoing depth and liquidity. 

Supply Bottlenecks Support Long-Term Growth

In 2025, only 9,520 homes were build across Berlin, . This figure sits well below the historical delivery level and falls short of Berlin’s actual housing goal of 20,000 homes per year. As the new local supply can’t expand fast enough to match the demographic demand, the pressure on the existing housing stick remains high.

The current data validates the choice to hold residential property in Berlin. Acquiring real estate in a major European capital with 0.3% vacancy, strong transaction liquidity, and a permanently restricted supply pipeline provides a stable, long-term foundation for wealth preservation and capital appreciation.