German rents rise twice as fast as inflation in Q4 2025

Asking rents in Germany rose by an average of 4,5 percentage points in the last quarter of 2025 compared to the same period in 2024. Listings for temporary and furnished lets are increasingly dominant.

Furnished and temporary lets dominate listings in Germany

Finding an affordable place to rent is already very difficult in Germany, and recent figures suggest it isn’t about to get any easier. According to the Greix Rental Price Index created by the Kiel Institute for the World Economy (IfW), at the end of 2025, asking rents were 4,5 percent higher than at the end of 2024. This means asking rents rose twice as fast as inflation.

What’s more, the number of advertisements for furnished apartments or short-term rentals is higher than ever in Germany. 17 percent of rental listings are now for furnished apartments or apartments only available on a temporary rental contract. In the eight largest German cities, these make up a quarter of all listings, and in Munich, a third of all listings.

Due to a loophole in Germany’s rent brake law, there are no limits on how much landlords can charge tenants to rent a furnished apartment. Berlin Mayor Kai Wegner (CDU) has previously called on the federal government to close the loophole.

“You put a chair in there, and Bob’s your uncle, the rent brake no longer applies,” the mayor said at a community meeting in Berlin-Tempelhof in spring 2025. “This can’t be right, it’s not okay.”

20 percent fewer listings than in 2015

“People looking for a flat have it tough out there,” IfW project manager Jonas Zdrzalek said in a press release. Between Q3 and Q4 in 2025, the number of rental listings fell by more than 10 percent. If we look at figures from 2015, listings have declined by around 20 percent.

“Skilled workers from Germany and abroad may also find it difficult to relocate,” Zdrzalek explained. “The continuing decline in rental supply may also indicate that tenants with long-standing contracts are holding on to their apartments whenever possible.”

In many cases, tenants may hold on to their rental homes even when they would prefer to move, since there are few affordable options for moving. As such, swapping rental contracts has become increasingly popular, which also means properties are less likely to be listed.