Rents in major German cities have risen disproportionately in the past 10 years. This is confirmed by a current analysis by immowelt.de. While inflation stood at 14 percent, rents went through the roof in many major cities … Berlin is at the top, with rents more than doubling with an increase of 104 percent. But also in Munich, Hamburg or Frankfurt, rents far exceeded the general price increase. The asking rents of apartments (40 to 120 square meters) in 80 major German cities were examined. In 77 of the cities examined, rent increases were higher than inflation.
The great attractiveness, the continuing high influx and the lack of cheap living space have caused the prices in Berlin to explode. Ten years ago, tenants in the capital still paid 5.60 euros per square meter, today they have to reckon with a median rent of 11.40 euros. Politicians react to this with the planned rent cover. This is intended to reduce rents and reduce the burden on the population. To what extent the law is successful will be shown.
“The attractiveness of many major cities has remained unchanged and rents are rising. Over the past decade, the municipalities have obviously failed to set the right course for more affordable living space, ”says Prof. Dr. Cai-Nicolas Ziegler, CEO of Immowelt. “Rental price brakes and rent covers will not solve the problem – rather, incentives must be created to boost the construction of apartments in the low-cost segment.”
Munich remains by far the most expensive city in Germany
In contrast, Munich residents can only dream of Berlin rents. The prices in the Bavarian capital were already at today’s Berlin level in 2009. In the most expensive German city, however, rents rose by a further 61 percent, so that the average price per square meter is now 17.70 euros. This is the absolute top value, far from Frankfurt – the second most expensive of the cities examined at 13.50 euros. Although wages in Munich are also high, ten years ago the rents were cut. This situation has been exacerbated by the further increases.
Metropolitan regions on the upswing
The largest increases in rents are recorded in economically strong cities and regions. In addition to Frankfurt am Main (+44 percent) and Hamburg (+42 percent), the Nuremberg metropolitan region is also booming. In Nuremberg and Fürth (+52 percent each) rents are still below the 10 euro mark, in Erlangen (+47 percent) this has already been exceeded. The diverse educational opportunities and the wide range of jobs make the city triangle increasingly attractive – the steadily increasing number of inhabitants make this clear. A comparable picture is also emerging in Lower Saxony. In Hanover, Göttingen (+48 percent each) and Braunschweig (+43 percent), living has become significantly more expensive. The region stands out for its economic strength, a renowned scientific landscape and its location on major European transport axes.
Second largest increase in Heilbronn
In addition to the metropolises, many smaller cities have experienced an economic upswing. This attracts students and job starters in particular. The increased demand also leads to rising rents there. The best example is Heilbronn: with an increase of 67 percent, the price increase for asking rents is the second largest – behind Berlin. This is due to the increased demand, but also due to numerous new buildings that are offered at a high price. With an average rental price of EUR 10.70, Heilbronn is still cheaper than Stuttgart, around 50 kilometers away (EUR 12.70). Würzburg (+57 percent) underwent a similar development. The resident university and the numerous universities ensure that around a quarter of all residents are students. This leads to increased pressure on the rental market.
Split picture in the east and NRW
While the radiance of Berlin surpasses everything in eastern Germany, there is otherwise a very different development. Leipzig (+42 percent) and Dresden (+36 percent) continue to gain in attractiveness, while in cities like Chemnitz (+11 percent) or Cottbus (+14 percent) the population stagnates and the increases just correspond to inflation. Young adults in particular are attracted to the cheap rents of around 7 euros per square meter to Dresden or Leipzig. The job opportunities are also significantly better than in the structurally weak regions in Lusatia or the Ore Mountains. The only city surveyed with falling rents is Rostock (-5 percent). The price differences within the Hanseatic city are enormous: very cheap prefabricated apartments on the outskirts determine the rental market, expensive new buildings in the tourist magnet of Warnemünde are rather rare.
As in the East, structurally weak and economically strong cities meet in North Rhine-Westphalia. Rents in student cities such as Aachen, Paderborn (+42 percent each) and Münster (+40 percent) have risen sharply. The two Rhine metropolises of Cologne (+34 percent) and Düsseldorf (+36 percent) are among the most coveted cities, which means rents beyond the 10 euro mark. On the other hand, cities in the Ruhr area such as Gelsenkirchen (+19 percent), Duisburg (+22 percent) or Hagen (+17 percent) show lower increases. Rents are currently at a low level of around 6 euros per square meter.
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Comments
January 16, 2020, 10.30 a.m.
tannhäuser | Böhse landlord and owner!
That the market economy shows its ugliest face on this topic, when even state officials and police officers cannot afford an apartment in Munich …
Is there only the red-green Jacobean style solution? Property gone, turnip off?
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16.01.2020, 11.31 a.m.
Leo 1A5 | Offer u. demand
Why has the “WG” s only existed for years with students and now also with older citizens?
Maybe we will take over the Japanese living system at some point, because 20 people can fit in a 3 room apartment with 75sqm, but it saves heating costs and Japan is 20 years ahead of us.
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January 16, 2020, 11:52 a.m.
tannhäuser | Yes, that’s also a market economy ..
The only thing that bothers me is that those state servants (hence my example) who hold their heads daily do not earn enough to pay their rent in a city center location, while the decision-makers live at the top like maggots in bacon with a second home and holiday villa and no longer have any relation to those who piss every day and get on their faces.
Nevertheless, expropriation is not a solution. Why should someone who is lucky or unlucky enough to inherit a house be punished or made naked per se?
Not too long ago, property ownership was advertised as a pension. Are you now a capitalist candidate for expropriation?
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January 16, 2020, 2:08 pm
Reader X | It is also worth taking a look at the neighbors here
In Germany, one of the most capitalist countries in the world, apartments are primarily speculative objects, most of all, of course, in the big cities.
Politicians have been pretending to do something about it for years, invented a paper tiger called the rent brake. A law that was evaded as successfully as the minimum wage.
Everything that is not wanted politically does not work. And it is no secret that German politics has always been on the side of the reporter for decades.
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January 16, 2020, 3:17 p.m.
Mueller13 | Fairy tale of rent explosion
It should be noted that:
1. Rents in Germany have in fact not increased over the past 50 years (in relation to the general price index). Let’s take the sample country BaWü and if we set 2015 = 100% then the following price developments arise:
Rent: 1968 = 25.3; 2019 = 106.5
Price index: 1968 = 28.6: 2019 = 105.7
I summarize: The deviation from the general price development are minimal and negligible -> nothing explosion in rental prices
2. Above all, operating costs have increased (due to state influences, such as energy taxes)
3. The living space per inhabitant has risen exorbitantly: 1960 = 19.5m² per person; 2015 = 46m² per person: more m² per person -> higher rents
4. The cities no longer show any new construction areas because they tend to focus on densification and gap building: scarce supply -> higher prices
5. The building prices have increased significantly. This is due to higher land prices, expensive building regulations and more expensive building materials, higher craftsman costs: higher building prices -> inevitably lead to higher rental prices
6. There is currently a strong influx into cities (urbanization, influx of migrants who especially want to go into cities): higher demand -> higher prices
BUT – as a state you can slow it down, there are a few simple measures: connecting the environment better to the ÖVPN, designating new construction areas, abolishing building regulations, stopping the influx of migrants. But there is no interest in actually solving problems, it is better to install an anti-investment rental brake in order to stall the last construction projects. But that’s the way they are in Berlin and Berlin (deliberate double mention).
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January 16, 2020, 3:33 p.m.
PIMI | @ Mueller13
Where have you lived and lived so far? Can you see them anywhere from the planetarium in Jena? To copy your style – it should be noted that you live in the West due to your job – your omission to BaWü- have no idea from your own experience! Have the honor…
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January 16, 2020, 16:36
tannhäuser | Ugly face of the market economy?
Because the state is the biggest beneficiary of buying and selling.
Or have you never dropped your jaw when you saw “VAT” on your fuel or phone bill?
Yes, it is a market economy and the state works with it and lives from tax revenues.
We have to accept that, but we don’t like it. And certainly not for this reason book a crash course in business or economics with you.
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January 17, 2020, 8:34 a.m.
N. Baxter | Greatest
Exactly, who is earning% tual very well from the rising prices – correct it was already mentioned.
And the population explosion, primarily in the cities through imports, cannot be ignored.
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January 17, 2020, 9:05 a.m.
Wolfi65 | @ tannhauser
I have to agree with you there.
Years ago you should make provision for your age with the purchase of a property.
Now this fact may fall on the owner’s feet.
Since you cannot see too far into the future when buying a property in the city, this purchase has already become a game of chance.
I can see from your lines that you yourself are the owner of a property.
If so, nobody needs to explain what is currently happening on the real estate market.
You have to explain why you bought it.
Times are changing.
PS: Of course, my pity for police officers is limited, who can not afford a rental apartment in Munich with the state coal.
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January 17, 2020, 6.43 p.m.
PIMI | Real estate transfer tax
I would like to agree with some preliminary comments. The largest profiteer is the tax office, and that in Thuringia at 6.5% of the purchase price. In contrast to Bavaria, which is satisfied with 3.5%, the conditions are not right, and that is not because of Bavaria!
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