Investing in a flat: Why existing flats will regain value in 2025
- naturresidenz
- 23. Juni
- 3 Min. Lesezeit
Condominiums as a lucrative and secure capital investment
Anyone wishing to invest in a condominium as a capital investment in Germany can look forward to new and positive forecasts. According to the latest Postbank Wohnatlas 2025, compiled by the Hamburg Institute of International Economics (HWWI), prices for existing apartments across Germany will rise by an average of 0.4% per annum in real terms (adjusted for inflation) until 2035. This is a clear and positive signal for investors: investing in residential property remains a safe and stable form of investment, even in times of economic uncertainty.
Large and medium-sized cities offer solid growth opportunities
The forecast for large and medium-sized cities and their surrounding areas is particularly positive. In the so-called ‘Big Seven’, Germany's seven largest cities, real price growth of 0.6% per year on average is expected.
Berlin and its surrounding area offer impressive potential
A closer look at the regions shows that Berlin and its surrounding area in particular will continue to grow in importance in the coming years. The district of Barnim, directly northeast of the capital, is achieving a realistic price increase of 1.3% per annum, despite comparatively low purchase prices. With a purchase price-to-rent multiplier of only 23.9, these locations are among the most attractive in the whole of Germany. Investors who invest in a flat in Berlin today can count on solid value growth and high demand.
The price-to-rent ratio makes it an attractive entry point
The development of the so-called rent-to-purchase price ratio is particularly interesting. In 2024, buyers across Germany paid an average of less than 25 times the annual net rent for an existing flat. This means that despite high inflation and economic challenges, entering the property market as an investment is currently comparatively inexpensive. This is a clear advantage for prospective buyers, especially when compared to the highs of recent years.
These regions offer the best combination of price and development
According to the Housing Atlas, 40 of the 400 districts and cities analysed meet three key investor criteria: moderate purchase prices, favourable rental conditions and above-average price growth of at least 0.6% per year. For investors, this means that those who invest specifically in these regions will not only benefit from secure rentals, but also from long-term asset growth. Now is the right time to secure properties in these locations.
Small flats: particularly interesting for capital investors
Anyone looking for a flexible, easily rentable investment property should focus specifically on 1-room and 1.5-room flats. These are in high demand among tenants, especially in urban locations such as Berlin Steglitz, where single households, commuters and students account for a large proportion of rental demand. At the same time, smaller apartment sizes enable a favourable entry price, a solid rental yield and high flexibility when it comes to resale.
Existing flats remain a stable and smart investment
The Postbank Housing Atlas 2025 makes it clear: existing flats will continue to have very good prospects in 2025 and beyond. Attractive entry opportunities are available, particularly for capital investors, thanks to lower prices, stable high demand and clearly foreseeable increases in value. Whether in urban Berlin, medium-sized towns or the dynamic surrounding areas, now is a particularly attractive and favourable time to invest in existing properties.
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