Rents: the increase in megacities is accelerating – WELT

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Rent increases are accelerating in German capitals

View of apartment buildings in Berlin and Widing.  Rents are rising particularly sharply in the capital View of apartment buildings in Berlin and Widing.  Rents are rising particularly sharply in the capital

View of apartment buildings in Berlin and Widing. Rents are rising particularly sharply in the capital

Source: dpa / Monika Skolimowska

Not enough living space Rents in Germany’s largest cities have been rising for years. A study shows that this increase has accelerated recently. The end of this trend is not in sight. On the other hand, purchase prices are falling.

hHi demand for living space, slow new construction, and reluctance to buy property: according to a new study, pressure has increased on the rental market in German cities. In the first half of the year, rental demand in Berlin, Hamburg, Munich, Cologne, Frankfurt, Dusseldorf, Stuttgart and Leipzig rose by an average of 6.7 percent, according to an analysis by real estate specialist Jones Lang LaSalle (JLL) published on Tuesday. In the same period of the previous year, the increase in rents was still 3.7 percent.

Momentum has recently been stronger in major cities than in metropolitan areas: There, rental demand for new buildings and existing apartments has risen 2.7 percent in twelve months. Advertised rents in the regions increased by 4.9 percent.

Rent demand has increased particularly strongly in Berlin and Leipzig, where, according to the study, double-digit percentage increases have been recorded. JLL explained that in Berlin, there was a net migration of 86,000 people in 2022, while more than 17,000 apartments were completed. The housing market in Berlin is getting tighter and tighter.

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Rent increases have been more moderate in other major cities, and rent prices have fallen slightly in Stuttgart. Asking rents does not yet mean a bargain, and sometimes the agreed rent deviates from this – but this is less common than buying a property.

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“In all of the major cities considered, there is a massive shortage of supplies caused by a stumble Living “It will be further strengthened,” said Roman Heydrich, a residential real estate expert at JLL. “Therefore, there is no end in sight to the rent increases,” she added. The pressures also come from rising lending rates that deter potential buyers from buying property and push them into the rental market.

The study also shows how affordable housing is in the eight largest cities. There, apartments for rent were offered at an average of €15.38 per square metre, about 50 percent more expensive than urban areas (€10.00) and 79 percent more expensive than rural areas (€8.61).

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the Purchase prices of new buildings and existing apartments kept under pressure. According to JLL, asking prices fell by seven percent in the first half of the year, while the same period last year saw an increase of 7.5 percent. While residential real estate in Berlin has gotten a little more expensive, there have been significant declines in all other major cities – most notably in Munich, Stuttgart and Dusseldorf. In big cities, prices rose sharply during the long real estate boom. According to JLL, prices have recently fallen much less in urban (-5.2%) and rural (-2.2%) areas.

Offer prices do not provide accurate information about the actual purchase price. “Real estate market reports issued by expert commissions, for which cases of real purchase are evaluated, sometimes show much higher price cuts,” said JLL expert Sebastian Grimm.

Residential real estate prices in Germany have been falling for months. According to the Federal Statistical Office, it fell by 6.8 percent in the first quarter compared to the same quarter of the previous year. Second quarter numbers are not yet available.

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