Why Berlin apartments are a safer bet than Berlin offices right now

Here's a number that stood out to us this month: commercial property investment in Berlin — offices, retail, that kind of thing — dropped by more than half in the first six months of 2026 compared to last year. Meanwhile, residential property quietly did the opposite, pulling in around €600 million and keeping Berlin at the top of Germany's housing investment rankings.

Why does this matter if you're buying an apartment, not an office building? Because it tells you something about where real, durable demand actually sits in this city.

Offices are exposed to things like remote work trends, company downsizing, and corporate budget cycles — all of which can turn on a dime. Housing is exposed to something much more stubborn: people need somewhere to live, and Berlin has been building far less than it needs for over a decade. That structural shortage doesn't disappear just because interest rates move around.

For an overseas buyer, this is reassuring in a specific way. You're not betting on an office market that rises and falls with quarterly corporate earnings calls. You're betting on a housing shortage that multiple governments — city and federal — have openly admitted they haven't solved yet. That's not exciting news for Berlin's renters, but if you're buying, it's exactly the kind of demand you want underneath your investment.