Rents rise rapidly: A look at housing costs in Germany's metropolises

Rents rise rapidly: A look at housing costs in Germany's metropolises

A shock for all those seeking apartments! In the German metropolises, rental prices explode and make the purchase prices look pale. The rents for new apartments have risen by shaken 32.3 percent since 2021 - the purchase prices, on the other hand, only by a loan 3.2 percent! This makes it clear how much the rental landscape has changed.

The pressure on tenants: inside is growing rapidly. An analysis by Immoscout24 shows that the price gap between buying and rental prices has decreased enormously from 2022- from almost 40 percent to 12.9 percent. A trend that for many means that living becomes financial burden.

rising rents burden the buyers

Why do rents go through the ceiling? Some things are related to the low interest rates and the ongoing demand for apartments. While purchase prices rose faster a few years ago, the situation has changed radically for two years. "The strong increase in rents makes real estate purchase as an investment or home more attractive," explains Dr. Gesa Crockford, Managing Director of Immoscout24. In the metropolises, the difference between purchase and rental prices of over 30 percent has shrunk to a low single-digit percentage range!

But that's not the only problem. In the past six years, the average rent for existing apartments in Germany has increased by 26.8 percent, while the purchase prices for condominiums have been attracted by shocking 76.5 percent at the same time. This discrepancy reached its peak in 2022 with a difference of 39.2 percent. But now everything is different!

particularly dramatic developments in the metropolises

Especially in the five largest cities in Germany - Berlin, Frankfurt am Main, Hamburg, Cologne and Munich - developments are particularly shocking. There, the gap between rental and purchase prices has dramatically approached. The purchase price for existing apartments rose by 65.5 percent between 2016 and 2021, while rents only increased by 21.6 percent. From 2021, prices for condominiums decreased, while rents continued to rise.

The example of the new apartments speaks equally volumes: In this area, rental prices have attracted 32.3 percent in the top 5 metropolises from 2021 to 2024, while the purchase prices only rose by 3.2 percent in the same period.

But despite the shocking numbers, there is no prospect of improvement. Immoscout24 recently revealed that rental apartments in the 40 largest German cities receive 21 times more inquiries than condominiums. A clear signal for the high -pressure situation on the rental market!

In this tense market, more and more real estate buyers want to take the direct leap into the purchase, but the competition for rental apartments remains hot. If you don't take care of it, you can quickly find yourself in a competition that further expensive the living space. One -sided numerical superiority for rental apartments - that screams after a turn in the real estate market!