Berlin housing market

Condominiums in Berlin remain expensive despite falling demand

At the end of the second quarter of 2022, Immowelt registered falling demand for residential real estate, especially in expensive cities.

Falling demand is already having an impact on prices. A strong decline in interest was recorded in Berlin (-52%) and Hamburg (-47%). Across Germany, the inquiries for advertised residential properties have shrunk by 17% compared to the previous year. The main reasons given by the online portal are rapidly rising loan interest rates, high inflation rates and the ongoing uncertainty caused by the war in Ukraine. At the same time, however, the number of advertised apartments has increased significantly again and has increased by 29% compared to the same quarter of the previous year.

As a result, stagnating or slightly falling prices can be observed in 7 out of 14 major cities: Munich, D├╝sseldorf and Leipzig each have a minus of 1%, in Hanover by 2%. In Berlin, despite reduced demand, there does not seem to be a balance with supply. There was a slight price increase of 2% in the second quarter.

Source: Immowelt