Berlin's rental prices now one of the three most expensive in Germany
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Loading... - michael mia
- 07 Oct 2024
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Berlin has now become one of the most expensive cities for renters in Germany, ranking third behind Munich and Frankfurt, according to a recent report by housing platform Immoscout24. Asking rents in the capital have reached an average of €14.19 per square meter, surpassing previous high-cost cities like Stuttgart and Cologne. Munich remains the most expensive, with rents averaging €20.97 per square meter, followed by Frankfurt at €14.97 per square meter.
The increase in Berlin's rental prices is particularly significant for new builds, where rents have now crossed the €20 per square meter mark for the first time, reaching €20.16 per square meter—a 3.3% increase from the previous quarter. In comparison, new builds in Frankfurt are at €18.90 per square meter, while Munich has the highest for new developments, sitting at €25.80 per square meter.
A recent analysis by UBS identified Munich and Frankfurt as cities where housing is notably overvalued. In its price-to-income assessment, the report found that a skilled worker in Munich would need to work eight years without expenses to afford a 60-square-meter flat near the city center, while in Frankfurt, it would take six years.
Berlin's skyrocketing rental costs come despite the German government extending the rent brake law (Mietpreisbremse) until 2029, aiming to curb rental price hikes in popular areas. However, the German Tenants Association (DMB) has noted that many tenants are not protected by this law, especially those in newly built properties rented after 2014 or recently modernized homes. As a result, 75% of Berlin tenants are estimated to be paying more than the legal rent limit, highlighting the city's growing affordability crisis.
