Living and Investing in Berlin: Real Prices, Real Costs, Real Facts

By Irem Demirci

Berlin in Numbers - What It Actually Costs

Berlin is often described as expensive but manageable. Below are realistic price ranges people encounter today.

1. Apartment Purchase Prices

Prices vary strongly by district, building age, and energy efficiency.

Average Prices per Square Meter

  • Citywide average - €4,800 to €5,500 per sqm
  • Central districts (Mitte, Prenzlauer Berg, Kreuzberg) - €6,000 to €8,500 per sqm
  • Well-connected outer districts (Pankow, Lichtenberg, Neukölln) - €4,000 to €5,500 per sqm
  • Further outer areas (Spandau, Marzahn) - €3,500 to €4,500 per sqm

Typical Purchase Budgets

  • 1-bedroom apartment (45 to 55 sqm) - €220,000 to €350,000
  • 2-bedroom apartment (65 to 80 sqm) - €320,000 to €500,000
  • Family apartment (90 to 110 sqm) - €450,000 to €750,000+

Key price drivers:

  • Altbau vs new build
  • Renovation level
  • Energy certificate
  • Distance to U-Bahn or S-Bahn

2. Rental Prices

Berlin remains a renter-dominated city, which keeps demand high.

Average Cold Rent (excluding utilities)

  • Citywide average - €14 to €18 per sqm
  • Central districts - €18 to €25 per sqm
  • Outer districts - €11 to €15 per sqm

Monthly Rent Examples

  • Studio or 1-bedroom (45 sqm) - €700 to €1,100
  • 2-bedroom (70 sqm) - €1,100 to €1,600
  • Family apartment (100 sqm) - €1,500 to €2,200

New rental contracts are usually much higher than older ones, which is why many long-term renters consider buying.

3. One-Time Purchase Costs

Buyers should budget 10 to 12 percent on top of the purchase price.

  • Property transfer tax (Berlin) - 6 percent
  • Notary and land registry - approx. 2 percent
  • Agent fee (if applicable) - 3 to 4 percent

Example:

  • €400,000 apartment - approx. €40,000 to €48,000 additional costs

4. Monthly Living Costs

Berlin is still cheaper than many European capitals, but no longer low-cost.

Typical Monthly Expenses (per person)

  • Groceries - €250 to €350
  • Public transport (monthly ticket) - €49
  • Utilities (electricity, heating, water) - €120 to €200
  • Internet and mobile - €40 to €60
  • Health insurance - mandatory, income-based

Average monthly spending (excluding rent) - €1,400 to €1,900

5. Financing Basics

For buyers using mortgages:

  • Typical down payment - 20 to 30 percent
  • Long fixed-rate periods - 10 to 15 years
  • Banks focus on income stability and affordability

Most buyers prioritise predictable monthly payments rather than maximum leverage.

6. Why People Still Choose Berlin

Search behaviour shows people now ask:

  • Is Berlin worth it long term?
  • Can I build a stable life here?
  • Does buying make sense compared to renting?

Berlin continues to attract people because of:

  • chronic housing shortage
  • strong rental demand
  • diversified job market
  • excellent public transport
  • long-term livability

Final Takeaway

Berlin is no longer Europe’s cheapest capital, but it remains one of the most balanced.

With clear price ranges, strong rental demand, and predictable living costs, Berlin appeals to buyers who value stability over speculation.

If you understand the numbers and plan realistically, Berlin remains a solid place to live and invest.