This thesis deals with the financialization of residential real estate and its impact on the local housing market. The thesis is divided in a theoretical and an empirical part. The first part, based on a literature analysis, describes the concept of financialization and its main characteristics. Afterwards it is analyzed which conditions lead to a financialization of residential real estate and which actors are involved. The empirical part, a case study, is used to investigate the impacts of financialization on the housing market of Berlin. Financialization is a complex phenomenon and it affects different levels, such as states, corporations and private households. Its main characteristics are deregulation and liberalization of capital markets, a shift in economical and societal priorities towards the financial system, and the increase of financial investment opportunities.^ The conditions leading to a financialization of residential real estate are the establishment of financial market-based financing opportunities for real estate investments, the increasing involvement of institutional investors in the real estate market, the extensive privatization by the public sector, the privatization of the pension system, low interest rates, a lack of investment options (especially in the wake of the global financial crisis), and the increasing value of residential property as an alternative investment for private households. As a result of financialization Berlin¿s housing market is faced with a steady demand from institutional investors, private households who are interested in home ownership, but also national and international private investors.^ Main impacts of financialization include the increasing significance of condominiums, especially in the wake of the global financial crisis, the increasing conversion of rental apartments into condominiums, but also the increasing use of rental apartments for tourists. Although the municipal administration of Berlin tries to control the impact of the financialization on the housing market, most of the interventions, including a lot of exceptions, are ineffective.