Rent prices in Germany have further increased
Rent prices in Germany have further increased in the first half of 2024, according to a study by consulting firm JLL. In large cities, the average asking rents rose by 6.3%, in counties by 5.6%, and in county-free cities even by 8.3%. JLL announced this on Thursday. In terms of metropolises, Berlin stands out particularly with a particularly strong increase.
In the metropolises Berlin, Düsseldorf, Frankfurt, Hamburg, Cologne, Leipzig, Munich and Stuttgart, the increase was less pronounced than in the second half of 2023, when advertised rents rose by 8.2%. However, the increase remains significantly higher than the average of the past five years. In county-free cities, the rent increase in the previous half year was only slightly above the five-year average at 4.8%, but it is now clearly outpacing it.
In Berlin, offers rents rose by 11.4% particularly strongly. The previous year, it was even 16.7%. Leipzig follows with a 9.8% increase, Frankfurt with 9.4%, Düsseldorf with 7%, Stuttgart with 5.2%, and Hamburg with 5%. In Cologne and Munich, the increase was the least, likely due to the already high rental levels in the two cities.
"The persistent imbalance between supply and demand leads to a high dynamics in the development of new rental contracts and to an increasing discrepancy to the strictly regulated existing rents," explained Sören Grobel from JLL. This further aggravates the situation on the housing market, as it reduces the motivation to move.
I decided to rent a place in Berlin for half a year, given the relatively moderate increase in rents compared to other city regions in Germany, as revealed in the JLL study. Despite the decrease in rental increase in Berlin compared to the previous half year, it still outpaced the five-year average.
