Reside
Study: renting is clearly increasing
The rental prices for residential properties have risen sharply again in many places in Germany. These cities are particularly strong growth.
According to an analysis, living in Germany is becoming increasingly expensive. In the fourth quarter of 2024, rents increased by an average of 4.7 percent compared to the same period last year. This emerges from a study by the Institute of German Economy (IW).
The highest increases were therefore available in Berlin (+8.5), Essen (+8.2) and Frankfurt (+8). Above average increase in rental prices were also recorded in Leipzig and Düsseldorf. According to IW, rental development showed slight weakening in the seven largest cities, but growth in other major cities and their surrounding area is still dynamic. Rents had already increased steadily in previous years.
“The rental market remains in great demand, while the offer is increasingly scared due to falling construction preparations,” the study authors write. It can also be assumed for 2025 that this trend will continue. According to IW, only 260,000 new apartments were completed in 2024. In 2025, the number should even decrease to 230,000 units. The completions remained significantly behind the actual need.
Buyer “reserved and price sensitive”
According to the study, the purchase prices remained comparatively stable in the fourth quarter of 2024. For condominiums, they were 0.4 percent lower than a year earlier, one and two-family houses were 0.6 percent more expensive. “After a phase of strong price declines, supply and demand seem to be more to be balanced again,” it says. This is mainly due to the slightly fallen financing costs.
Buyers continued to act “reluctant and price sensitive” and can afford more due to fallen interest and increased income. Seller, on the other hand, adapted to the new events and are often willing to make price confessions.
dpa
Source: Stern
