Berlin Rent Prices 2024: How Expensive is Living in the Capital?
- Selma
- Mar 13
- 7 min read
Berlin has undergone a dramatic transformation over the past two decades. What was once known as "poor but sexy" and attracted artists, creatives, and free spirits from around the world has evolved into an international metropolis where affordable housing is increasingly scarce. This transformation is particularly evident in the evolution of rental prices.
After the fall of the Berlin Wall in 1989 and German reunification, Berlin possessed an exceptionally large stock of inexpensive apartments, especially in the eastern districts. The economic upheaval and initial emigration of many people from the former East Germany led to an oversupply of housing. As a result, Berlin was considered remarkably affordable for a long time compared to other European capitals like London and Paris, or even German cities like Munich and Hamburg.
However, this situation began to change gradually from the mid-2000s and then accelerated dramatically from 2010 onward. Berlin's growing international appeal, the influx of digital nomads, startup founders, and international investors, as well as the general economic recovery of the city, led to a drastic increase in housing demand.
Berlin Rent Prices 2024: An Overview
The average rental price for an apartment in Berlin in 2024 is 15.97 €/m², which is nearly 60% more expensive than the national average of 9.89 €/m². Small apartments are particularly in demand and therefore among the most expensive. Below is an overview of rental prices by apartment size:
Rent prices in Berlin vary significantly depending on apartment size and target group. Small apartments (20–35 m²) are the most expensive at 19.22 €/m². This is primarily due to high demand from singles, students, and commuters who prefer a compact, centrally located apartment. At the same time, the supply of small apartments is limited, further driving up prices.
Interestingly, prices increase again for apartments exceeding 100 m², with an average of 17.46 €/m², making them among the most expensive in Berlin. This is largely because larger apartments are often located in high-demand areas or offer premium features such as balconies, historic architecture, or luxury finishes. Additionally, large apartments attract wealthier households or shared living arrangements (WGs), enabling landlords to set higher rental prices.
Compared to the national average, rents in Berlin are significantly higher across all categories—sometimes nearly double. While in Germany, a 50–60 m² apartment costs an average of 9.52 €/m², the Berlin average in this category is 15.27 €/m².
While central districts like Mitte, Charlottenburg, and Prenzlauer Berg have the highest rents, outer districts still offer more affordable options.
Most Expensive Districts: Mitte, Charlottenburg, Friedrichshain-Kreuzberg – These districts are among the most desirable places to live in Berlin. High demand, luxurious new developments, and proximity to cultural and economic hotspots drive rental prices above 20 €/m². Exclusive apartments with views of the Spree or historic buildings are especially sought after.
Mid-Priced Districts: Neukölln, Wedding, Moabit, Lichtenberg – These areas were once considered affordable but are now experiencing rapid price increases due to gentrification and rising popularity. Some parts of Wedding, Tempelhof, and Südkreuz still offer relatively affordable options, but prices continue to climb.
Most Affordable Districts: Marzahn, Hellersdorf, Märkisches Viertel, Spandau – For those looking for lower rents, outer districts like Marzahn and Hellersdorf offer rates below 10 €/m². These areas provide a good price-to-value ratio, particularly for families and commuters. Spandau and Reinickendorf are also attractive for those who prefer a quieter environment with good transportation links.
Tip: Looking at outer districts or nearby cities can significantly reduce rental costs. Being flexible about location can save hundreds of euros per month!
Why Are Rent Prices in Berlin So High?
Several factors have contributed to the sharp rise in Berlin’s rental prices:
High Demand & Limited Housing Supply
Berlin is growing rapidly – thousands of people move to the city each year. Students, young professionals, and international workers all flock to Berlin, creating intense competition for housing. Also housing construction cannot keep up with demand. High construction costs, long approval processes, and land shortages make it difficult to build enough new apartments. As a result, vacancy rates remain low, and landlords can charge premium prices.
Gentrification & Rising Modernization Costs
Neighborhoods that were previously considered affordable are experiencing increasing gentrification. This is a structural transformation process where originally inexpensive districts become attractive to more affluent tenants through renovations and modernizations.
Existing housing is often modernized rather than newly created, causing older affordable apartments to disappear. Many landlords use modernizations as justification for rent increases. Examples include the installation of new heating systems, facade renovations, or the enhancement of courtyards. While these measures improve the quality of living, they often lead to massive rent increases that many tenants can no longer afford.
Examples of Rent Increases in Trendy Areas:
Neukölln’s rental prices have nearly doubled in the last 10 years.
Friedrichshain and Kreuzberg have transitioned from alternative neighborhoods to premium residential areas.
Wedding was once a budget-friendly secret, but now sees rising rents due to increased investment.
Berlin as an Economic Hub
Berlin has become one of Europe's leading startup and technology hubs. Companies like Tesla, Zalando, and Google have large offices in the city, attracting high-income professionals who can afford higher rents.
Higher-earning tenants contribute to rising rental prices, particularly in areas near business hubs and coworking spaces. Many corporations also offer relocation services, which increase competition for available apartments.
Examples of Rent Increases Due to Economic Growth:
Mitte and Kreuzberg have seen significant office space development, driving up residential rent prices.
Tesla’s Gigafactory in Grünheide has brought many new workers to Berlin, increasing housing demand in the city and surrounding areas.
Proximity to coworking spaces and innovation hubs makes certain districts particularly attractive to high-earning startup employees, further raising rent prices.
Outlook: How Will Berlin's Rents Continue to Develop?
Despite political efforts such as the rent cap (which has since been declared unconstitutional), rent control legislation, and increased new construction initiatives, there are no signs of fundamental relief in Berlin's housing market. Experts predict that rents in Berlin will continue to rise, although perhaps not at the rapid pace seen over the last decade.
The COVID-19 pandemic and the increasing prevalence of remote work have additionally led to increased demand for larger apartments, putting additional pressure on the market.
For apartment seekers, this means they must expect persistently high rents and should develop a comprehensive search strategy early on that includes less central locations. At the same time, it's worthwhile to know your rights as a tenant and to check whether rent increases or new rental prices are legally permissible.
Despite everything, Berlin remains relatively affordable compared to metropolises like London, Paris, or Munich – however, its former status as an "affordable big city" has long since become history.
Tips for apartment hunters in Berlin
Given the high rental prices in Berlin, it's more important than ever to pursue a smart strategy when searching for an apartment. The housing market is fiercely competitive, especially in popular districts like Mitte, Kreuzberg, or Charlottenburg. However, a structured approach and using all available resources can help you find a suitable apartment more quickly.
A successful apartment search requires patience, good preparation, and the right timing. Here are some important tips to help increase your chances of finding an affordable apartment in Berlin.
Use Homeboy App:
The best tip for a quick apartment search is Homeboy. This application aggregates listings from various platforms, so you don't have to click through countless websites. Additionally, you can set specific search filters, receive notifications for new listings, and gain an advantage over other apartment seekers.
Start Early:
Good apartments in Berlin are taken within a few days or even hours. Those who begin their search too late often miss the best offers. It's best to start looking at least two to three months before your planned move.
Leverage Your Network:
Many apartments are never publicly listed but are instead rented out through personal recommendations. Ask friends, colleagues, and acquaintances if they know of any available apartments. Additionally, it’s helpful to actively participate in Facebook groups and LinkedIn housing networks where private listings are often shared.
Know Rental Laws & Avoid High Additional Costs
Consider the Rent Control Law:
Berlin has a legal rent control mechanism ("Mietpreisbremse") designed to prevent new rental agreements from exceeding a certain percentage of the local comparative rent. Nevertheless, many landlords don't comply. Therefore, before signing a rental contract, check:
Is the rent more than 10% above the Berlin rent index?
Are modernization surcharges justified?
Are there hidden additional costs in the rental agreement?
Tip: Use the platform conny.de to have your rent reviewed and take legal action if necessary.
Keep an Eye on Additional Costs:
In addition to the base rent, high operating costs often apply. In Berlin, the average warm rent (including utilities) is approximately 20-30% higher than the cold rent (base rent). Before signing a contract, check:
Are all operating costs transparently listed?
Are heating and electricity costs already included?
Are there hidden additional costs (e.g., for janitor or garden maintenance)?
Comparing the warm rent with similar properties can help identify excessive additional costs.
Conclusion: Finding the Right Apartment Faster with a Good Strategy
Those who search early, use different channels, and familiarize themselves with rental laws and additional costs in advance have the best chances of finding an affordable apartment in Berlin. The competition is fierce, but with good preparation, you can still secure apartments even in sought-after neighborhoods.
Especially important: Use networks, try alternative housing platforms, and inform yourself about the rent control law. Many apartments aren't publicly advertised – this is where personal contacts and special platforms can help.
The Homeboy App: By using Homeboy various apartment listings can be searched on a single platform. With individual filters and notifications for new offers, you can respond faster to available apartments – a real advantage in Berlin's competitive housing market.
If you're flexible and also search in outlying districts or adjacent communities, you can save a lot of money. Districts like Marzahn, Spandau, or Reinickendorf often still offer affordable housing – with good connections to the city center.
With these tips, your apartment search will be faster and less stressful!
Ready to start searching for your first home today? With HOMEBOY, you can effortlessly browse the latest real estate listings across multiple platforms at the same time. Be the first to find and secure your new home!