dpa | Rents in Germany rose significantly in many places at the end of 2025. In the fourth quarter, asking rents rose by 4.5 percent compared to the same period last year, around twice as high as general inflation, shows the GREIX rental price index, which is published by the Kiel Institute for the World Economy (IfW). Compared to the third quarter, the increase in the 37 cities and regions examined was 1.0 percent.
At the same time, the portion is temporary and furnished rental offers grown to record levels. Nationwide, more than one in six advertisements (17 percent) in 2025 were in this segment, according to the institute. In the eight largest cities the proportion is almost a quarter, and in Munich it is even around a third. “Those looking for accommodation are currently having a difficult time,” says Jonas Zdrzalek, project manager FAT at the IfW Kiel. “The classic offer is declining, prices are rising and the conditions are becoming tougher with more and more fixed-term contracts or furnished offers.”
The number of advertisements has fallen significantly
Offers from more than 100 real estate platforms and broker websites are bundled for the GREIX index. Over 60,000 advertisements are analyzed every quarter.
According to the information, asking rents rose quarter-on-quarter in seven of the eight largest German cities, particularly in Cologne with 3.4 percent and Munich with 1.9 percent. In Hamburg and Frankfurt the increases were around the national average of one percent.
The average rent was highest in Munich at 23.35 euros per square meter, ahead of Frankfurt at 17.36 euros – significantly more than the average of 14.41 euros. Overall, asking rents have risen 14 percent more than general inflation since 2015. “At New rentals in large cities are particularly likely to be given to low earners or people in training and studies are increasingly reaching their limits,” said Zdrzalek.
In addition, according to the study, supply is decreasing. In the fourth quarter of 2025, the number of advertisements was seven percent lower than in the same quarter of the previous year. Compared to 2015, there are even around 20 percent fewer rental advertisements. This is a sign that people with old contracts are keeping their apartments and many properties are being given away without an advertisement.
Rents increased by 42 percent in five years
The real estate specialist Jones Lang LaSalle (JLL) is also recording a significant increase in rents. In the second half of 2025, the asking rents in the eight metropolises, including Berlin, Munich, Stuttgart and Leipzigclimbed an average of 4.4 percent compared to the same period last year. But not only in the largest German cities, JLL also recorded significantly increasing rents in the independent cities outside the metropolises (plus 3.4 percent) and in the rural districts (plus 4.4 percent).
The asking rents for new apartments in particular rose sharply, although less than a year ago, shows the analysis, for which around 35,000 rental offers were evaluated.
JLL estimates that there will be little change in the upward trend this year. However, very expensive rents are likely to be more difficult to enforce because the market is reaching its limits in the premium segment, for example. Over five years, rents in major cities have already risen by an average of 42 percent.