Rental Prices in Germany Continue to Rise

According to data from the German Economic Institute (IW), rental housing prices in Germany continued to rise between July and September, compared to the previous quarter — with the increase being most noticeable in major cities.

During this period, the prices of single and two-family homes rose by 0.9% from the previous three months. Although these homes were still 3.5% cheaper year-on-year, owner-occupied apartments became 0.6% more expensive quarter-on-quarter and 2.6% higher than a year earlier.

IW researchers noted that “the price recovery in the German housing market is gaining stability,” marking the third consecutive quarterly increase.

The study found that prices rose across both urban and rural areas, including all major metropolitan regions. Particularly strong growth was recorded in districts surrounding large cities, where prices for single and two-family homes climbed 4.4% year-on-year.

The report also highlighted that high rents in major cities are prompting many people to move to surrounding areas.

In the third quarter, rental agreements were up 1% compared to the previous quarter and 3.8% year-on-year.

The steepest rent increases were seen in:

• Düsseldorf: +5.6%

• Cologne: +5.1%

• Hamburg: +4.4%

The only exception was Berlin, where new rental contracts fell slightly by 0.2%. However, the institute warned that “it’s still too early to talk about relief” in the capital.

Source: Hürriyet

Photo: DPA