Investment property · Advice for buyers

Flats as an investment, with your eyes open.

Price, commission and tenancy law, explained without promises of returns.

Private buyers pay at most half the commission Every figure with source and date Properties before they are advertised

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The numbers

Price divided by annual rent: one figure, two names.

Divide the purchase price by the annual rent excluding heating and ancillary costs and you get the price-to-rent multiplier. Turn the calculation round and you have the yield. Maintenance, management, loan and taxes still have to come off that.

15.9 to 24.6xAnnual rents in the purchase price, range across the districts with published valuesGuthmann Estate, nine districts with a published value, retrieved 03/11/2026
20.9xYears of rent in the purchase price of multi-family buildings, average of notarised sales in Berlin (2025: 22.4x)Guthmann Estate based on transaction data from the Berlin valuation committee (Gutachterausschuss), as of 13/10/2026
24.6xAnnual rents in the purchase price, multi-family buildings in Charlottenburg-Wilmersdorf (City West)Guthmann Estate based on transaction data from the valuation committee (Gutachterausschuss), as of 13/10/2026
3.3 to 3.9%Property yield rate (Liegenschaftszins), which valuers use to convert rents into a value; area group City, net cold rents of 8 to 12 euros per square metreGutachterausschuss Berlin (valuation committee), reference date 31/12/2024, official
€19.17 per m²Asking rent in Charlottenburg-Wilmersdorf, median value, range €10.00 to €28.20IBB Housing Market Report 2025, listing data, not agreed rents

These figures come from sales of multi-family buildings that actually went through. The asking prices and rents for owner-occupied flats work out at around 31 annual rents (IBB Housing Market Report 2025). The gap is not a negotiating discount: different property types are being compared.

The figures for all twelve districts: Market data Berlin. The Guthmann figures are not official; only the figures of the valuation committee (Gutachterausschuss) are official.

How we help: We work with the rent stated in the tenancy agreement, not the rent someone is asking. If you already own a flat, we assess it using the same calculation: Request a valuation.

Financing

The interest rate helps decide what remains of the income.

Besides price and rent, the monthly instalment, the fixed-rate period and the repayment determine what is left of the rent. Repayment is the part of the instalment that pays off the loan. How interest rates and conditions in Berlin have developed is shown in the market data.

Property and financing under one roof

Clarify the instalment, fixed-rate period and equity with our financing expert (licensed under § 34i GewO, German Trade Regulation Act) before you go to viewings.

Nationwide financing network

Through our nationwide financing network, we present you with offers from several banks side by side.

Support until approval

We put together the documents for the bank and support you until you receive the financing confirmation.

How we help: We clarify the instalment and fixed-rate period before you make an offer. Financing on the Buy page

The decision remains yours. We disclose any remuneration between us and a partner in advance. Mortgage brokerage under § 34i GewO (German Trade Regulation Act) is provided by Maximilian Vigansky personally. General information, not financing, tax or investment advice.

Commission and contract

As a private individual, you are a consumer, even when investing.

You pay at most half

  • Since 23 December 2020, private buyers of an owner-occupied flat or a detached house pay no more commission than the seller (§§ 656c and 656d BGB, German Civil Code). If only the seller instructed us and you take over part of the commission, you pay later than the seller. The seller must have paid first, and we must provide you with proof of this (§ 656d para. 1 sentence 2 BGB).
  • The agency agreement requires text form, for example an email. A commission notice in an email signature is not enough.
  • If the agency agreement is concluded without meeting in person, you may withdraw from it. You receive the information on this before we work for you.

Where the line is drawn

  • If you buy through a company or as a business, this split does not apply. We then agree the commission before marketing begins, and it is set out in the agency agreement. The text form requirement under § 656a BGB still applies.
  • It never applies to apartment buildings, plots and commercial property. If a private individual buys several flats at once, we check it case by case. See Apartment building and Portfolio and packages.
  • More in the guide Equal split principle for agent's commission.

Law relating to the property

Four rules that determine the income.

01

Rent cap (Mietpreisbremse)

When you re-let, you may charge at most ten per cent more than is usual in the neighbourhood (§ 556d BGB; Mietenbegrenzungsverordnung, the rent limitation ordinance for all of Berlin, valid until the end of 2029). Exceptions: new builds from October 2014, the previous tenant's rent, a modernisation.

How we help: Before you buy, we check whether the current rent matches the usual level in the neighbourhood, and whether an exemption applies. Rent cap guide · Berlin rent calculator

02

Levy after a modernisation

If you have modernised, you may add eight per cent of the costs per year to the rent (§ 559 BGB). Over six years, this may raise the rent by no more than three euros per square metre, or two euros if the initial rent is below seven euros. If you replace the heating with the help of subsidies, it is ten per cent and no more than €0.50 per square metre per month over six years (§ 559e BGB). Normal repairs do not count.

How we help: In the minutes of the owners' meetings, we separate repairs from modernisation before you count on a levy. Guide: modernisation levy

03

When the tenant has priority

If a let building is divided into individual owner-occupied flats, the tenant may buy their flat first (§ 577 BGB). After that, in Berlin you cannot give them notice on grounds of personal use (Eigenbedarf) for ten years. The period is counted from the sale (§ 577a para. 2 BGB; Berlin Kündigungsschutzklausel-Verordnung, the eviction protection ordinance, valid until 30/09/2033).

How we help: Before the purchase contract, we clarify whether the flat comes from such a division and whether the tenant has priority. Guide: right of first refusal

04

Social preservation areas

In 82 areas of Berlin, the district protects residents from displacement; this is called Milieuschutz, or social preservation area (Geoportal Berlin, as of 16/09/2026). Anyone who demolishes, converts or changes the use there needs approval (§ 172 para. 1 BauGB, Federal Building Code). It is granted if the conversion brings the flat up to the standard of an average flat (§ 172 para. 4 sentence 3 no. 1 BauGB). If you buy a single owner-occupied flat, the district has no right of first refusal (§ 24 para. 2 BauGB).

How we help: We check the address before the purchase contract and tell you what modernisation is still permitted there. Social preservation map (Milieuschutz) with address check

Before the decision

What you should see before you run the numbers.

The flat

  • Tenancy agreement with rent, advance payment for service charges, deposit and term.
  • Energy performance certificate, by the viewing at the latest, with efficiency class and energy source.
  • Land register extract with sections II and III, which list third-party rights and debts on the property.

The owners' association

  • The declaration of division (Teilungserklärung), i.e. the document that sets out which part of the building belongs to whom, together with the community regulations.
  • Minutes of the owners' meetings for the last three years, the budget plan and the statement of the service charge (Hausgeld), i.e. the monthly contribution to the owners' association.
  • How much money the owners' association has set aside for repairs and which renovations have been approved. Full list: Buying a property.

Additional costs when buying in Berlin: six per cent real estate transfer tax (Grunderwerbsteuer) to the state, plus notary, land register and commission. Example calculation in the guide to additional purchase costs. General, non-binding information, not tax, legal or investment advice.

Frequently asked questions

Flats as an investment: frequently asked questions.

Answers as of 6 November 2026

Do I also pay half the commission if I want to let the flat?

Yes, as long as you buy as a private individual. What matters is who buys, not what you later do with the flat (§§ 656c and 656d BGB, German Civil Code). The agency agreement requires text form, i.e. at least an email (§ 656a BGB).

What return does a flat in Berlin bring?

Multi-family buildings most recently cost 20.9 years of rent on average in Berlin, and 24.6 in Charlottenburg-Wilmersdorf (Guthmann Estate, as of 13/10/2026). 24.6 years of rent equal roughly 4.1 per cent a year before any costs are deducted. We cannot promise this. It depends on your loan, on maintenance and on your taxes.

May I increase the rent after the purchase?

Only within narrow limits. The rent cap (Mietpreisbremse) limits the rent when a flat is re-let. The rent increase cap (Kappungsgrenze) limits increases during an existing tenancy. After a modernisation, you may pass on part of the costs. If you demand too much, the tenant can object.

How do I find out about flats that are never advertised?

Through the investor search profile. Anyone who has told us in advance what they are looking for hears from us first, even before a possible listing.

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What really helps at this point.

Agent's commission in BerlinText form, acting for both sides, passing on the commission: the rules since December 2020. Rent cap in BerlinWhat a permissible rent is and how tenants object. Modernisation levyEight per cent, three-euro cap, distinction from maintenance. Additional purchase costs in BerlinReal estate transfer tax, notary, land register, commission, with an example calculation.

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