Demand for short-term accommodation has risen significantly across Europe — but Berlin stands out as a particularly dynamic market. The German capital combines culture, politics, innovation and quality of life like hardly any other metropolis.

Berlin's growth region: Why a holiday home here is now particularly worthwhile

Demand for short-term accommodation has risen significantly across Europe — but Berlin stands out as a particularly dynamic market. The German capital combines culture, politics, innovation and quality of life like hardly any other metropolis. Anyone who owns or plans to buy a holiday property in Berlin today has ideal conditions for successful short-term rental.

In this article, you will find out why a holiday apartment in Berlin is particularly worthwhile now, which developments are driving tourism — and what you should pay attention to as an owner when entering this market.

1. Convincing figures: tourism growth in Berlin

Berlin recorded around 29.6 million overnight stays in 2023 — an increase of 16.1% compared to the previous year. International guests accounted for around 11.5 million overnight stays, and the trend continues to rise. Hotels alone can no longer meet this demand — the need for private and flexible accommodation is growing rapidly.

Growth drivers include:

The return of major trade fairs, conferences and events (e.g. Berlinale, IFA, ITB)

The growing scene of digital nomads, expats and project workers

A solid connection to international air traffic (BER)

The strong interest in sustainable, individual city tourism

At its peak, Berlin has around 80,000—90,000 overnight guests every day — many of them in holiday apartments, Airbnb apartments and serviced apartments.

2. Why invest right now?

Berlin is facing structural change in the tourism market: While the traditional hotel industry is reaching capacity limits, the private rental market is becoming more professional. At the same time, entry prices — compared to cities such as Munich or Hamburg — remain attractive in many neighborhoods.

Your benefits as an owner:

Early positioning in a market with growing competition

Good return opportunities in sought-after districts

Year-round demand — through a mix of business and leisure travelers

The increased flexibility of guests (home office, longer stays) also makes Berlin an ideal location for modern rental concepts.

3. The right strategy for Berlin

Success in short-term rental depends heavily on how well you adapt your apartment to the target groups in Berlin.

What is important in Berlin:

Top locations: Prenzlauer Berg, Kreuzberg, Mitte, Charlottenburg and Friedrichshain are particularly popular — central locations with good public transport connections.

Modern equipment: WiFi, desk, coffee maker, Smart Lock — guests expect functional and aesthetic standards.

Flexible use: If possible, also equip the property for medium-term stays (from 1 month) — e.g. for expats or project workers.

Tip: Apartments with sustainable furnishing concepts or regional flair also stand out positively on the market.

4. Don't forget the legal framework

Berlin is considered a pioneer in the regulation of short-term rentals. The misuse statute requires that you need a registration number with the responsible district office for every commercial or tourist rental. In many cases, a misuse permit is also required.

Arbio helps you to implement all local regulations in a legally secure manner — from application submission to transparent guest communication.

5. Conclusion: Now is the right time for Berlin

Whether for personal use, as a capital investment or for renting out via Airbnb & Co.: Anyone who invests in a holiday property in Berlin today secures a piece of the growing tourism market — and lays the foundation for profitable use in the long term.

With the right strategy and a professional partner like Arbio, getting started with short-term rental is easy, legally secure and efficient.

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