Rents in German cities rise by 50 percent in 10 years

Rents in major German cities have risen by an average of 50 percent in the past 10 years, despite the nationwide rent brake being introduced in 2015. Politicians across the political spectrum are calling for reform.

Rents in German cities 50 percent more expensive than in 2015

Figures from the Federal Institute for Research on Building, Urban Affairs and Spatial Development have revealed that rents in the 14 largest German cities are on average 50 percent more expensive than they were in 2015.

Average rents in Munich (22,64 euros per square metre) and Frankfurt (19,62 euros per square metre) are still the most expensive in the country. However, Berlin, Leipzig and Bremen have seen the biggest increase in rents over the past decade.

In 2025, average rents in Berlin are 18,29 euros per square metre and a stunning 107 percent more expensive than they were in 2015. In Leipzig, today’s average rents are 66,7 percent more expensive and in Bremen, 57 percent more expensive than in 2015.

Dresden is the German city which saw the smallest average rent price rise over the past decade, but still recorded a rise of 28,4 percent. According to ImmoScout24, the average rent in Dresden today is 9,01 euros per square metre.

Rent brake has too many loopholes, say politicians

In response, politicians are calling on the federal government to strengthen the country’s existing rent brake (Mietpreisbremse). Caren Lay (The Left Party) commented that the current rent brake is so flimsy that it doesn’t offer tenants any effective protection.

“The explosion in rental costs means that tenants in major cities are bleeding out every cent, moving is impossible, and it is only leading to further social division in our society,” Ley said. 

The rent brake was first introduced by the CDU-led grand coalition in 2015. Under the law, if a landlord charges a tenant more than 10 percent above the legal amount determined by the local rent index (Mietspiegel), the tenant is entitled to a rent reduction and refund of any overcharged rent they have already paid.

However, tenants who live in newly-built properties rented for the first time after 2014, modernised properties, properties rented for less than a year, properties where the rental contract was signed before the law took effect, and those previously rented at an illegally high price, are not protected.

Certain cities have attempted to implement their own rent caps, including Berlin in 2020, but the legislation was overturned by the Federal Constitutional Court in Karlsruhe. Since then, Berlin Mayor Kai Wegner (CDU) has called on the federal government to introduce a nationwide rent cap.