Berlin is a city in constant reinvention, politically, architecturally, and economically. Its past is layered, its present is global, and its real estate market reflects ambition and structure. For international buyers, this means opportunity with boundaries, growth with guidance, and access without shortcuts. The bottom line? Yes, you can buy property in Berlin as a foreigner — legally, safely, and with full ownership rights. But to do it well, you need strategy, clarity, and local expertise.

This guide from the real estate agency “Invest AB” breaks down every step of the Berlin property buying process for international buyers: from budget planning to mortgage options, viewings, legal steps, and most importantly, how to prepare for resale from the very beginning.

Follow this step-by-step process to buy property in Berlin as a foreigner. 

1) Define Your Budget and Strategy Before Buying Property in Berlin

2) Berlin Real Estate: Set Your Goals and Choose the Right District

Berlin is not one market; it’s many micro-markets. Prices and potential vary from street to street. While average prices in 2025 range from €5,000 to €9,000 per square meter, new construction projects and luxury properties often exceed €10,000/m².

So ask: Do you want a modern flat in a high-rise or a historic walk-up in need of renovation? Would you prefer central convenience or long-term value in an emerging district?

At this stage, your agent should act as both advisor and realist — helping you navigate trade-offs between size, location, renovation scope, tenancy status, and long-term value.

3) Berlin Property Prices in 2025: What You Get for Your Money

The Berlin real estate market continues to show strength in 2025, with steady demand and limited supply driving sustained value growth. For foreign buyers, Berlin real estate for expats remains one of the most attractive and stable investment categories in Europe.

Here’s an overview of average price ranges by district:

⭐ Mitte: €6,500 – €9,000/m²
⭐ Charlottenburg: €6,000 – €8,000/m²
⭐ Prenzlauer Berg: €5,800 – €8,500/m²
⭐ Friedrichshain: €5,500 – €7,000/m²
⭐ Kreuzberg: €5,500 – €7,500/m²
⭐ Neukölln: €4,500 – €6,500/m²
⭐ Schöneberg: €5,500 – €7,500/m²
⭐ Wedding: €4,000 – €5,500/m²
⭐ Marzahn: €3,500 – €5,000/m²

Prices depend on location, building condition, tenancy, and energy performance. A skilled agent will guide you through what these figures mean in real terms and how they align with your budget.

5) Buying a Rented Apartment in Berlin: Tenant Laws and What to Know

Berlin has some of the strongest tenant protections in Europe. If you purchase a rented apartment, you cannot simply terminate the lease.

Here are the key legal rules to know:

The notice period for termination by the owner increases with the tenancy duration:

⭐ Under 5 years: 3 months
⭐ 5 to 8 years: 6 months
⭐ Over 8 years: 9 months

Conversion protection (Kündigungssperrfrist) may also apply. If a rented building is converted into individual condominiums, the new owner may not terminate the tenant’s lease for personal use for at least 10 years after the property is registered in their name.

This regulation protects tenants from displacement. A professional agent will guide you through these legal nuances and help assess whether tenant-occupied properties make sense for your goals.

6) Submitting an Offer and Signing the Notary Contract in Berlin

7) Additional Costs When Buying Real Estate in Berlin

The purchase price is only part of your investment. Buying a property in Berlin involves approximately 12% additional transaction costs, which are rarely financed by banks.

These include:

⭐ 6.0% real estate transfer tax (Grunderwerbsteuer)
⭐ 1.5–2.0% for notary and registration fees
⭐ Up to 3.57% agent commission

You should plan to cover these costs from your own funds and be prepared to transfer them shortly after the contract is signed.

8) After You Buy: Managing, Renting or Living in Your Berlin Property

Once ownership is transferred, your options depend on whether the property is vacant or tenanted.

⭐ Vacant: You may move in, rent it out, or begin renovations.
⭐ Rented: The lease continues under German tenancy law, and personal-use termination is subject to strict conditions.

Many international buyers opt for professional property management services. A trusted firm will handle tenant relations, repairs, bookkeeping, and local compliance, letting you stay hands-off while your investment is properly maintained.

9) Your Exit Strategy: How to Sell Your Berlin Apartment Tax-Free

From the moment you buy, you should have your exit strategy in mind. Whether your horizon is five or fifteen years, plan with tax, value growth, and resale positioning in view.

Germany offers generous capital gains exemptions:

⭐ If you hold the property for 10 years, any capital gain on resale is completely tax-free, regardless of your residency.
⭐ If you use the property as your main residence, you can also sell tax-free before 10 years, provided:
⭐ You lived there from the year of purchase through the year of sale, or you lived in the apartment for at least two full calendar years before selling

This makes personal use a strategic advantage, especially for expats relocating to Berlin.

Before selling, always request a professional property valuation to define a realistic and competitive price. At INVEST AB, we use up-to-date market data and buyer insights to prepare properties for successful exits – from pricing to positioning.

Why Berlin Remains One of Europe’s Best Real Estate Markets for Foreign Buyers

Berlin is no longer an insider tip, but it remains undervalued compared to London, Paris, or Zurich. It offers legal clarity, tenant stability, rising value, and cultural depth – all within a secure and transparent real estate system.

Buying property in Berlin as a foreigner isn’t just legal — it’s smart. But it requires preparation, strategy, and the right partners. Know your budget. Define your goal. Understand the rules. And surround yourself with experts who act in your interest.

When you’re ready, the multilingual, full-service team at INVEST AB is here to guide you through each step of the process, from first call to final signature and beyond.

FAQ

Now you know how to buy property in Berlin as a foreigner. Which neighbourhood is on your list?