Berlin, January 31, 2026: Strong transaction volume, high demand for forward deals and intelligent new construction projects in Berlin and the surrounding area signal a noticeable recovery in Berlin’s residential market. PREA reports transactions in the land and new-build residential market in Berlin totaling 100 million euros within the last four weeks and sees the start of a very strong transaction year 2026.
For a good year now, sales prices between landowners and developers have once again been matching at a level that makes economically viable projects possible. Forward deals with a time horizon of 24 to 30 months until completion are particularly interesting at the moment – they allow investors to secure attractive new construction projects in the Berlin residential market at an early stage and benefit from the expected growth in rents and values.
In particular, we are looking for new construction projects with intelligent, marketable apartment floor plans to the KfW55 standard in Berlin and the surrounding area. Projects that combine energy-efficient construction methods with well thought-out floor plans are in particularly high demand – both in the forward deal segment and in transactions involving residential properties that can be developed at short notice.
In the forward deal segment, real estate prices are now rising again, while construction costs are adjusting to the new market conditions. This area of tension creates attractive entry windows for investors who are prepared to actively participate in the Berlin residential market over the next two to three years. PREA plans to place a further EUR 300 million exclusively in the Berlin market by the end of the current quarter and believes that this is just the beginning of a broader market dynamic.
Based on the current pipeline, existing investor demand and market data, PREA estimates that there is a potential of around EUR 5 billion in the Berlin market for new residential construction and land in 2026 alone. PREA has one of the largest portfolios in the residential market and a deep insight into current market developments. The database and feedback from institutional and private investors clearly show that, despite structural challenges, the Berlin residential market has stabilized and 2026 is expected to be a very strong year for transactions.
One key driver is the development of rents: as predicted in previous PREA studies, rents are approaching the benchmark of EUR 30 per square meter. Rents are already trending closer to EUR 30 than to EUR 20. This means that the rent level in Berlin is stabilizing, the risks of forward deals and property development projects are decreasing and the market is becoming even more attractive for long-term investors.
“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.”
“Our market and transaction data clearly show that the Berlin residential market is recovering faster than many expected. Anyone investing in residential properties and forward deals now is positioning themselves for a very good year in 2026,” adds Thomas Zienterski, Head of Real Estate at PREA.
Property owners, developers and investors looking to enter or expand their position in the Berlin residential market are invited to contact PREA for potential transactions in the area of residential land, new construction projects and forward deals. The PREA team provides support in the structuring, valuation and marketing of suitable properties and accompanies the entire transaction process.
