Study: Demand on the rental market reaches record high
In Germany, the demand for rental space has significantly increased according to a study by real estate platform ImmoScout24. This trend is even more pronounced in smaller cities than in the top 8 metropoles. This primarily leads to higher rental prices for new buildings. However, prices for commercial real estate have slightly decreased.
The demand for rental apartments in Germany is on the rise. This leads to higher rents for new buildings, as shown in a study by real estate platform ImmoScout24. "The demand pressure on the rental market has reached a new record high and illustrates the tense situation," said ImmoScout24 managing director Gesa Crockford. "The increasing demand is no longer just a phenomenon of metropolitan areas." Both their hinterland, regional centers, and economically well-connected locations are attracting more and more seekers. The demand for rental space in the hinterland of the top 8 metropoles increased by 17% between April and June within a year, and in other cities by 19%.
Rental prices for new buildings on the platform of ImmoScout24 rose nationwide in the spring by 2.7% compared to the beginning of the year. Within a year, they even rose by 8.7%. Therefore, a two-room apartment with 70 square meters in a new building was offered for rent for 856 Euro cold rent per month. This corresponds to a square meter price of 12.23 Euro. However, in Munich, the traditionally most expensive pavement under Germany's metropolises, the rent in a new building averaged 1756 Euro with 25.08 Euro per square meter. The rent for existing buildings remained unchanged nationwide in the second quarter, but was 4.2% above the previous year. Therefore, the average 70-square-meter apartment cost 599 Euro, at 8.56 Euro per square meter.
Despite significantly increased demand, prices for many commercial real estate properties decreased slightly in the spring. In seven of eight metropoles, the asking prices for ownership apartments in the existing stock remained relatively stable from April to June, as ImmoScout24 reported further. Nationwide, however, prices here fell by 1.1%, and for new buildings by 2.1%. This is due to the fact that there are fewer new construction projects and these are increasingly being built on the outskirts of the city and not in the city center. "Thus, there is less dynamism in price development."
Overall, ImmoScout24 sees signs of a revival on the market. "The residential real estate market for purchases is gaining momentum, the waiting phase is over for both buyers and sellers," said managing director Crockford. Both contact and financing inquiries on the internet platform are therefore increasing significantly. "People want to buy again." At the same time, more single-family homes are coming onto the market. This is particularly evident in metropolitan areas.
The interest in buying - measured by contact inquiries at ImmoScout24 - increased in the largest eight cities in the annual comparison by 47%, which is the highest level since 2017. This trend is continuing in the hinterland of the metropoles (+36%). The purchase prices for existing houses were 0.9% above the previous level nationwide in the second quarter, but 0.6% below the level of the previous quarter for new houses.
- In Berlin, the rising demand for rental apartments has led to a significant increase in rent prices for new buildings, as reported by Gesa Crockford, managing director of ImmoScout24.
- Despite the higher demand for rental apartments, real estate prices for commercial properties in Berlin have seen a slight decrease, according to data from ImmoScout24.
- For individuals considering purchasing an apartment in Berlin, the interest in buying has increased significantly, with contact inquiries up by 47% compared to the previous year, according to the report from ImmoScout24.
