Rising rents: what 70 square meters cost in the city now

It’s not good news for people looking for a new apartment: rents in Germany continue to rise. According to an evaluation by Immoscout, asking rents increased noticeably throughout Germany in the second quarter – after there had already been an increase in the previous months. Existing apartments were offered an average of 2.5 percent more expensive than in the first quarter and new apartments by 2.2 percent. Compared to the offers a year ago, the rents are 7.2 percent (existing) and 6.3 percent (new building) higher.

The situation in the metropolises remains the most difficult. Rents there continue to rise despite the already high rent level, even if in some cases not quite as much as at the beginning of the year. “The pressure on the rental market is continuing, especially in the metropolitan areas. More and more people are being forced to look for a rental apartment outside of the metropolis.” says Gesa Crockford, Managing Director of Immoscout24.

This also has consequences for rent levels in the suburbs. A separate evaluation by Immoscout recently showed that rents in some smaller towns with good public transport connections to a metropolis have multiplied within a year. All Immoscout figures are rents at which apartments are offered and not rent increases in existing tenancies.

More than 1000 euros cold rent

In the metropolises themselves, asking rents have risen significantly more than the general rate of inflation within a year. Existing apartments in Berlin were recently offered 15.6 percent more expensive than a year ago, new apartments even 16.9 percent. In the capital, the housing shortage is particularly striking. If you look around on Immoscout, you will find in Berlin and .

But also in Munich and Stuttgart, in Cologne and Dusseldorf, the asking rents have risen by more than ten percent on average within twelve months. In Frankfurt and Hamburg, the increase is somewhat smaller, but still respectable (see table).

Immoscout uses a two-room apartment with 70 square meters as an example to show how high the rent level in the major cities is now. For a new apartment of this size you have to pay more than 1000 euros cold rent in each of the top 7 metropolises – in Munich it is even 1600 euros cold. Existing apartments with 70 square meters are offered in the metropolises for around 900 euros cold, in Munich for over 1300 euros.

Table: basic rent for a 70 square meter apartment, price development 12 months (Q3 2023 to Q2 2022)

Source: Immoscout

Purchase prices are rising again

Immoscout gives tenants little hope for the further development of rents. “If no new apartments come onto the market, demand will remain at the high level and in some cases will increase even further,” says Immoscout boss Crockford. She believes that the rising rents will make buying a home more attractive again, despite the high interest rates.

This is also indicated by figures on real estate for sale, which the portal has also collected. Accordingly, the – previously collapsed – demand for real estate for sale in most metropolises has risen again for the third quarter in a row. Anyone who wants to buy an apartment or a house in one of the seven major cities currently has to pay a slightly lower price than they did a year ago. “At the moment there is still an excess supply on the purchase market, which leaves room for price negotiations,” says Crockford. “However, it remains to be seen how long this situation will continue.”