Berlin, 28 January 2026. In January 2026, PREA successfully structured and brokered two mezzanine financing deals from private investors for new residential construction projects in Berlin and the surrounding area. The respective financing volumes are in the mid seven-figure euro range. Both projects are already under construction and were sold as part of forward deals.

The transactions underline the growing confidence of institutional and private investors in the recovery of the Berlin housing market. The conditions achieved range between 10 and 12 percent interest and thus reflect realistic, market-driven mezzanine conditions. Higher expected returns with a multiplier on money (MoM) of 1.5 or more are currently not considered economically viable.

The two most recent mezzanine financings are examples of how the market environment for new residential construction in Berlin is changing:

• Financing of ongoing new construction projects with realistic mezzanine conditions of between 10 and 12 percent interest
• Average seven-figure ticket sizes per project in Berlin and the surrounding area
• Forward deals that ensure early acceptance for property developers and predictable entry points for investors
• an environment of falling construction costs, rising sales prices and stabilized demand, which significantly reduces the risk

Against this backdrop, new construction projects in the Berlin area appear to be clearly calculable again. Falling construction costs, rising sales prices and stabilizing demand make the risk in the segment appear significantly lower than in previous years – especially where projects are based on solid cost calculations and marketable residential concepts.

“2026 will be an excellent transaction year for the Berlin residential market. Investors are looking for forward deals,” explains Gabriel Khodzitski, CEO of PREA. “We are seeing strong demand for new-build projects that will be completed within the next 24 to 30 months.”

PREA sees Berlin as one of the most attractive locations for new financing in the current year. A transaction volume of around five billion euros is expected for the residential and real estate sector in the capital alone. Projects with a sustainable profile are particularly in demand – KfW 55 standard, affordable apartment sizes and intelligent floor plan solutions are the focus of investors and developers alike.

The latest developments confirm the trend: new construction projects in the Berlin area are paying off again. The improved cost structure and the increased rent level in the top 7 cities – with a new median benchmark of around 30 euros per square meter – signal a stable and calculable market basis. PREA expects this dynamic to be reflected in all forms of financing – from mezzanine and traditional debt capital to forward deals.

With the successful structuring of the latest mezzanine transactions, PREA has once again consolidated its role as a link between investors, developers and banks. The result is tailor-made financing strategies that align both yield requirements and market realities.

PREA is currently examining further mezzanine financing in the Berlin area. Project developers and investors who want to structure new construction projects or forward deals can contact PREA to jointly set up market-driven and sustainable financing. In this way, PREA makes a concrete contribution to ensuring that urgently needed housing in Berlin and the surrounding area can be realized more quickly.