Living in Germany is getting more and more expensive! Despite the corona pandemic, rental prices continue to rise in most cities. Despite the resulting job insecurities, landlords have not suspended upcoming rent increases.
This is shown by a current analysis by Immowelt for 80 major German cities.
In four-fifths of all major cities, prices per square meter for apartments from 40 to 120 square meters increased for new rentals.
Special case Berlin
Rents are also rising rapidly in Germany’s capital! The average price per square meter for rental apartments is currently 12.50 euros.
But Berlin is a special case. Because: The rent cap introduced there last year should actually prevent these exorbitant rental prices. Existing apartments are indeed becoming cheaper, but be careful: the supply of apartments is shrinking!
On top of that, the rents in unregulated new buildings (built from 2014) are now climbing all the more, as an Immowelt evaluation from November shows. Overall, asking rents in Berlin are growing by five percent.
Front runner Munich
In 2020 Munich will remain the undisputed most expensive city in Germany. Although the rental prices here are already enormous, they continue to rise despite the corona pandemic.
For new rentals in Munich you have to reckon with an average of 18.60 euros per square meter!
► The prices in the area around Stuttgart developed the most. Square meter prices rose by a full 12 percent in Reutlingen and by nine percent in Pforzheim. Both cities barely reach the 100,000 inhabitant mark, but are economically growing cities and are not far from the Stuttgart metropolitan area.
► Reutlingen and Pforzheim have always been popular for commuters. That should continue to develop thanks to the home office option. Because both cities are still cheaper than the state capital Stuttgart (see table).
Lose student cities
In a few cities, rental prices have declined compared to 2019 last year. This was particularly evident in student cities. Face-to-face events were canceled and students did not have to look for apartments in the respective cities.
► A slight decrease of three percent was recorded in Heidelberg (11.60 euros per square meter) and in Erlangen (10.60 euros).
▶︎ Over 25,000 students are enrolled in Potsdam. After the recent strong increases, also due to the proximity to Berlin, the level is currently leveling off at a decline of five percent at 9.90 euros – one reason is likely to be the lack of new students looking for accommodation.
The ongoing corona crisis seems to continue to bounce off the real estate market. Rent prices continued to rise in the crisis year 2020, so that living in Germany is becoming more and more expensive.
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