Rental prices in Berlin further increased: In July 2022 average rent of EUR 11.74 per square meter in the existing

Rental prices in Berlin further increased: In July 2022 average rent of EUR 11.74 per square meter in the existing

The rents in Berlin continue to rise, as can be seen from an examination of the real estate portal Immowelt. In July 2023, the average rent for existing apartments was 11.74 euros per square meter. That is 3.9 percent more than in the previous year. Berlin is one of 69 German cities in which rents rose last year. A total of 80 cities with more than 100,000 inhabitants were examined.

According to Immowelt, the prospects for a future reduction in rents are low. The large influx to Germany and the lack of housing construction additionally strain the already tense rental market. In particular, the low construction preparations are alarming. Immowelt Managing Director Felix Kusch asks the Federal Government to focus more on this problem. Otherwise, living in cities will become priceless for many people.

The situation in Munich, the most expensive city in Germany, is particularly precarious. The average rents of offer rose by 5.2 percent within one year. Instead of 16.68 euros, tenants now have to pay 17.55 euros per square meter in the portfolio. In Hamburg and Berlin, rents have increased by 3.9 percent each last year. Average prices of 11.27 euros per square meter are currently called in Hamburg.

Also in other German cities such as Stuttgart, Frankfurt am Main and Cologne, the square meter rents for existing apartments are high. In Dresden, for example, 7.88 euros per square meter are required, which corresponds to an increase of 1.7 percent compared to the previous year.

In contrast, many cities in East Germany are still comparatively cheap. However, due to the increasing economic upswing in the region, rents could soon increase. More and more large companies are settling in the east, which leads to an increasing attractiveness of the big cities. The specialists who move to the east due to the future -oriented jobs meet there in cheap rents that are gradually increasing.

The cheapest rental apartments are currently offered in Chemnitz, where the square meter price is an average of EUR 5.46. Due to the high vacancy rate, the price has only increased by 1.5 percent, but also in Chemnitz there is potential for rising rents, according to Immowelt.

However, there are also some major cities in which rents are falling. A total of eleven cities have a decline in the range rents. The decline is stronger in three high -priced student cities. This may be due to the fact that many students can no longer cope with the increasing living costs. The largest price reduction was recorded in Freiburg with 6.1 percent.

Overall, the rental market in Germany remains tense, especially in cities such as Berlin and Munich. In East Germany, rents could also increase in the future, as more and more companies are settled there and the economy is gaining drive.