In order to understand investments in apartments in Berlin one must also understand the German psyche about home ownership. After WWII government funded or encouraged housing projects took off and resulted in the availability of good quality rental homes. The preference is to rent homes regardless of one’s economic status. In Bavaria, for example, where people are relatively better off, they still prefer to live in rented houses. Demographics play a key role. As in other German cities, there is a movement of local people to other more prosperous areas while there is an influx of immigrants looking for work in a prospering Berlin. This translates to more demand for rental homes.


Another factor to consider is mortgages. Berlin is positively placed in this regard with low interest rates, easy access to funding and extended repayment schedules, all of which encourage investors to consider Berlin apartments for sale as a positive investment avenue.

Yet another factor to think about is location. Location influences prices of apartments in Berlin, their resale value and also their rental value. Right at the top are the posh localities of Grunewald, Friedrichshain-Kruezberg, Prenzlauer Berg, Charlottenburg-Wilmersdorf followed by Steglitz Zehlendorf, Neukoln and Reinickendorf with Spandau and Marzahn Hellersdorf at the low end. This is convenient in that investors can invest in any of the three tiers according to their capacity and how they manage to leverage funds through mortgage and rentals or leases.


Tax is another cornerstone of investment policy, both income tax and property taxes. Forming a company as an investment vehicle for each property is an ideal way to balance tax incidence.

Are these the only considerations? By no means. There are others such as past trends, current movements and future indicators all of which have a bearing on forming a suitable tactical strategy. An expert local Berlin realtor will give the best advice integrating all these factors and a wise investor starts here.