Rent levels have risen by more than 7 percent across Germany since the beginning of 2023.
According to new data from the real estate platform Immosscout24, the rate of rent growth was breaking all records already in the first months of 2023. Between January and March, cost of renting used apartments in Germany increased by 7.4 – 7.7 percent. Furthermore, compared to rental prices for the same period last year, the numbers grew up by 12 percent for resale properties and 20 percent for new buildings. This trend affected both units from the owners and new buildings.
The strongest spikes in price levels were observed in such cities as Berlin and Stuttgart. Speaking to the Frankfurter Allgemeine Zeitung (FAZ), Immosscout24 Managing Director Geza Crockford said: “Berlin and Stuttgart are seeing sharp increases in rents in new rental apartments of around 8 and 9 percent in the first quarter.”
Outside of Berlin, this trend is even more pronounced in Germany’s most expensive city, Munich. Since the new year, the resale rent of apartments in Berlin has reached a record level of 12.56 euros per square meter per month, compared to 18.44 Euros in the Bavarian capital. The current national average is 8.01 Euros per square meter per month.
To date, in Germany, tenants moving into new homes spend more on rent than their neighbors in existing housing. For new buildings, the average monthly rent in the country is 11.01 euros per square meter. This is largely due to the increase in the cost of new housing construction. This, in turn, means that the German government at the moment does not set itself the goal of adequately organizing the construction of new housing to meet the growing demand.
