How is the real estate market in Berlin-Dahlem developing? The following market report examines price trends in the district, classifies current market figures for the Berlin real estate market, and provides an objective outlook for 2026.
Dahlem – Location Overview
Dahlem is considered one of Berlin’s established and high-quality residential areas and ranks among the most sought-after submarkets in the southwest of the city. The streetscape is characterized by spacious villas and classic period buildings. In addition, there are individual residential buildings from the 1970s, constructed on formerly larger plots of land. Overall, the building stock is mature and predominantly high-end.
Freie Universität Berlin is an integral part of the district. On weekdays, students and staff shape the atmosphere of Dahlem on their way to institutes and lectures. The university’s international orientation is noticeable in everyday life and contributes to the vibrancy of the neighborhood without altering its calm character.
Sports facilities, green spaces, and a well-developed network of bicycle paths define the surroundings and offer high recreational value. Transport connections are good. Bus lines and the U3 underground line provide convenient access to City West and other central locations in Berlin.
Price Development in Dahlem – Market Observations
The development of real estate prices in Berlin-Dahlem has shown a differentiated picture since 2021. Following a high price level in 2021, prices rose significantly again in 2022. Subsequently, however, a noticeable market correction set in.
According to our observations, since 2023 many purchase prices have been achieved that were around 15 to 20 percent below the peak levels of 2022. This development was not always immediately visible on property portals, as asking prices often remained significantly above the purchase prices later notarized.
In parallel with price developments, financing conditions also changed significantly from 2023 onward. Banks adopted a more cautious approach and required higher equity contributions. Nevertheless, many transactions were realized, with buyers receiving additional support through private loans from family members, while banks financed the remaining share.
Classification: Berlin Real Estate Market – Current Market Figures
To classify local developments in Dahlem, we refer to publications by the Expert Committee for Property Values in Berlin (Gutachterausschuss für Grundstückswerte in Berlin). The market reports are based on notarized purchase contracts and therefore provide a realistic picture of the actual development of the Berlin real estate market.
The evaluation for the first to third quarters of 2025 shows that the Berlin real estate market has regained significant momentum. The number of transactions increased by approximately 13 percent year-on-year to 16,514 purchase cases. Transaction volume rose by around 19 percent during the same period to approximately €11.0 billion. At the same time, purchase prices remained largely stable overall, with slight increases in individual submarkets.
These figures refer to the overall Berlin market and serve to classify developments in individual districts such as Dahlem or other locations in the southwest of the city.
Berlin Real Estate Market – Market Data (Q1–Q3 2025)
Indicator | Development |
Number of purchase cases | 16,514 (+13% year-on-year) |
Transaction volume | approx. €11.0 billion (+19%) |
Purchase prices | largely stable |
Market trend | increasing market activity |
Outlook 2026 – Berlin and Berlin-Dahlem
For 2026, the Berlin real estate market as a whole is expected to continue stabilizing. Following the significant correction phase since 2022 and the increasing market activity in 2024 and 2025, price levels are likely to move largely sideways. Individual submarkets may show slight adjustments, depending on property type, location quality, and financing conditions.
For the Berlin-Dahlem submarket, much points to continued stable development in 2026. The limited supply of high-quality properties meets sustained but more selective demand. Sales are primarily concluded where location, quality, and price are well balanced.
Source: Expert Committee for Property Values in Berlin (Gutachterausschuss für Grundstückswerte in Berlin), “The Development of the Berlin Real Estate Market in the 1st to 3rd Quarter of 2025,” published on 02 December 2025.
Note: The Expert Committee does not publish separate purchase price indicators for individual districts such as Dahlem or Zehlendorf. The figures presented refer to the overall Berlin market and serve for general market classification purposes.
