The rental market in Germany remains tight: Housing is scarce and prices are high, especially in urban centers. Despite falling purchase prices and stable interest rates, many people are reluctant to buy property. Although there is great interest in home ownership, people looking for a new home are once again opting for a rental solution.
There is still a shortage of living space in Germany, as the new construction target of 400,000 units per year has not been reached – prices remain high, especially in cities.
The slowdown in construction activity is contributing to the fact that available rental apartments remain scarce in many cities. At the same time, the picture for rental prices is mixed: Berlin even saw slight declines in the last quarter, while rents in Stuttgart rose significantly. Meanwhile, Munich remains the most expensive major city in Germany.
Smaller cities are also experiencing rising rents – such as Trier, Fulda and even Görlitz with its traditionally low prices.
For many tenants, the monthly costs are high – in some cases, it is worth comparing them with monthly real estate financing. Those with sufficient equity and financing options can benefit from the current market situation. Many sellers are willing to negotiate, which makes the switch from the rental to the owner-occupied market attractive and enables more affordable living in the long term. It may therefore be worth looking at property again.
In our short video, we take a look at examples of rental trends in various cities and regions in Germany. Would you like to find out more about the current rental market – especially in our region? Then please get in touch with us. We are constantly monitoring developments on the real estate market – for both rental and purchase properties – and can provide you with expert advice on where it is currently particularly worthwhile to rent or buy.
Would you like to know how the situation is developing in your region? Talk to us! We will guide you competently in your decision – whether to rent or buy.
