Inherited house in Zehlendorf or Lichterfelde: sell, let or move in?

Inheriting a house in Zehlendorf or Lichterfelde usually means two things: a substantial asset and a task that often lands in the middle of a period of grief. Whether selling, letting or living in the house yourself is the right solution should not be decided by gut feeling, but by four questions: Who has a say in the decision? What condition is the house in? What does the market offer in autumn 2026? And what are the tax consequences of each option?

First, establish: who decides, and what exactly is being inherited?

Where several people inherit, a community of heirs (Erbengemeinschaft) comes into being. Major decisions about the house, namely selling it, letting it or one co-heir taking it over, must in principle be made jointly by all those involved. If no agreement can be reached, a partition auction may ultimately follow, which rarely produces the best outcome for the family. Before you discuss the options, three foundations should therefore be in place:

• proof of inheritance, such as a certificate of inheritance or a notarial will with the record of its opening, and the correction of the land register,
• a realistic market value as a shared basis for negotiation among all co-heirs,
• an assessment of the building fabric, heating and roof, as well as the documents, such as planning permissions, floor plans and the energy performance certificate.

Especially with older villas and terraced houses, such as those that characterise the Villenkolonie in Lichterfelde or many streets in Zehlendorf, the need for refurbishment largely determines which option is economically viable. After a change of ownership, energy-efficiency retrofitting obligations under the Buildings Energy Act (Gebäudeenergiegesetz) may also apply; which ones apply in your specific case should be checked by an energy consultant on site. A well-founded property valuation provides the figures on which all parties can rely.

Selling: what the Berlin market offers in 2026

According to the Berlin valuation committee (Gutachterausschuss für Grundstückswerte), more houses for one or two families were sold in 2025 than in the previous year: up 7 % by number and up 8 % by transaction value. The average purchase price was around 3.830 € per square metre of value-relevant gross floor area, roughly 1 % more than before. Important: this figure refers to gross floor area, not living space, and is a city-wide average. It says little about the price of a specific house in Zehlendorf or Lichterfelde.

In 2026 the pace has slowed. In the first quarter, the valuation committee recorded 555 sales of houses for one or two families, 8 % fewer than in the same period of the previous year, with prices virtually unchanged. For the first half of 2026 it reports around 10.330 sales across all market segments (down 5 %) and transaction value around 12 % lower, at 6,1 bn €. For sellers, this means that prices have held so far, but buyers are examining properties more closely and negotiating harder, especially where refurbishment is needed.

For communities of heirs, selling is often the clearest route, because the proceeds can be divided cleanly and nobody remains permanently responsible for maintenance and tenants. The drawback: re-entering the market later means incurring purchase costs again, and any future increase in the value of the location no longer benefits the family. You can read how a structured sale works under Selling a property.

Letting: ongoing income with clear limits

Demand for rental housing in the south-west is high. According to an analysis by Guthmann (as at 13.10.2026), asking rents in Steglitz-Zehlendorf in 2026 averaged 17 € per square metre, compared with 8,10 € according to the 2022 census. These figures relate to flats; let detached houses are a separate, small segment.

Legally, the rent cap (Mietpreisbremse) applies across Berlin from 1 January 2026 to 31 December 2029, based on the Rent Limitation Ordinance (Mietenbegrenzungsverordnung) of 11.11.2025 (Haufe). On a new letting, under § 556d BGB (German Civil Code) the rent may in principle be no more than 10 % above the local comparative rent; for existing tenancies, the cap on rent increases limits them to 15 % within three years. High advertised rents are therefore no yardstick for what can be agreed in a legally compliant way.

Practical questions also arise: landlords bear the costs of maintenance, management and the risk of vacancy, and within a community of heirs it must be settled who takes on these tasks. If you later decide to sell after all, bear in mind that a let house appeals mainly to investors, whereas owner-occupiers generally look for properties with vacant possession. You can find more on tenant selection and support under Letting with IBV.

Moving in yourself: a tax advantage with a long commitment

For spouses and children, the family home can, under certain conditions, pass free of inheritance tax entirely (§ 13 para. 1 no. 4b and 4c ErbStG, the German Inheritance Tax Act). For children, the exemption applies only up to 200 m² of living space. The key condition is that you live in the property yourself for ten years. If you move out earlier, let the property or sell it, you lose the exemption retroactively and in full (Stiftung.de, as at 09.10.2026). A job-related move after just a few years can therefore prove expensive.

Irrespective of this, the personal tax-free allowances apply, which remain unchanged in 2026: 500.000 € for spouses, 400.000 € per child, 200.000 € for grandchildren (§ 16 ErbStG, according to anwalt.de). For houses in Zehlendorf or Lichterfelde, the value may exceed these thresholds, particularly if further assets are added. Reform proposals from politicians have been put forward, but there is no law as yet.

If several heirs are involved, the person moving in generally has to pay out the others. This is more expensive today than a year ago: the finance broker Dr. Klein quotes a best rate of 4,09 % effective for a ten-year fixed interest period (as at 26.10.2026), compared with 3,38 % in October 2025; Interhyp shows 4,5 % (as at 15.10.2026). Worked example: for a buy-out of 400.000 €, interest at 4,1 to 4,5 % comes to roughly 16.400 to 18.000 € in the first year, not including repayments, refurbishment and incidental costs.

Taxes on a sale, and a look at the surrounding area

A sale can also have tax consequences. Whether income tax is payable on a capital gain depends, among other things, on when the deceased acquired the house and how they used it. This question should be clarified with a tax adviser before the property is marketed.

Some heirs sell the family home and look for something more suitable in the surrounding Brandenburg area. At IBV, eight properties for sale in Teltow are currently listed (as at 26.10.2026), priced between 335.000 € and 849.000 €. Our article House prices 2026 gives an overview of the market in Kleinmachnow, Teltow and Stahnsdorf, and the page Leaving Berlin offers further guidance.

Decision guide: which option suits you?

• Selling is the obvious choice if co-heirs have different plans, considerable refurbishment is needed or nobody has the time to manage the property.
• Letting is suitable if the community of heirs is in long-term agreement, reserves for maintenance are available and the legally permissible rent covers the running costs.
• Moving in yourself is worthwhile if you are certain you want to live there for ten years, the buy-out of the co-heirs is affordable and the house and its layout suit your daily life.

Your next step: have the market value of the inherited house determined before the family makes any decisions. IBV Immobilien has supported owners in the south-west of Berlin for over 20 years and produces your property valuation with IHK (Chamber of Industry and Commerce) certification and in a transparent, traceable manner, as a neutral basis for all co-heirs. For an initial confidential conversation, please feel free to use our contact form. Please note: this article is not a substitute for legal or tax advice in individual cases; please clarify questions on inheritance tax, family homes and capital gains with your tax adviser or a specialist solicitor in inheritance law.