Rent prices in some major German cities have started to fall
According to a new study by housing portal Immowelt, rent prices in Germany have started to flatten out, and in some areas, even decline.
Tenants have hit their breaking point
According to housing experts, falling and stagnating rent prices in some of the most popular German cities could be due to many tenants finally reaching their financial breaking point.
Some of the German cities most known for having expensive rentals, such as Frankfurt, Hamburg, Munich and Stuttgart, have seen rent rises taper off through summer and autumn 2021, while buying a house in Germany has continued to get more expensive.
Current rent prices in Munich stand at around 16,50 euros per square metre, while apartments in Hamburg are somewhat more affordable at around 10,98 euros per square metre. As for Frankfurt, which is the second most expensive city in Germany, rents have even begun to decline slightly, dropping from 11,72 euros per square metre in the second quarter of 2021, to 11,60 euros by the third quarter. Rent prices have also dropped by 1 percent in Stuttgart too, Germany’s third most expensive city.
Immowelt releases quarterly reports
Immowelt released the new data as part of its quarterly Mietkompass survey, for which the housing portal looked at the rental prices of properties listed on its site, to assess the average prices for new tenants. To look at the prices in a comparative way, Immowelt took three-bedroom, second floor flats, that had an area of 80 square metres.
14 of the most popular German cities were surveyed, of which only five cities saw rent prices increase, six stayed about the same, and three went down in the second and third quarter of 2021.