Between January and March 2023, the nationwide asking rents for existing flats rose by 7.4 percent, and 7.7 percent for newly built flats, according to a new assessment from real estate platform Immoscout 24.

As compared to a year ago, nationwide asking rents for existing properties rose by up to 12 percent and for new builds by up to 20 percent.

In addition to noticeable price increases, the demand and the competition for flats has been particularly high, wrote Immoscout 24. As a result, people were increasingly looking for a new place to live in the suburbs of larger cities.

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Extreme increases

Flat hunters in Germany’s seven largest metropolises were most affected by price hikes, wrote the real estate platform. 

“Berlin and Stuttgart are recording extreme increases of around eight and nine percent for new rental flats within the first quarter, which have never been seen before,” Immoscout 24 managing director Gesa Crockford told the Frankfurter Allgemeine Zeitung (FAZ). 

In Berlin, asking rents for existing flats have reached a record high of €12.56 per square metre, while Munich is by far the most expensive at €18.44. The national average sits at €8.01.

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For newly built rentals, flat seekers will have to dig deeper into their pockets: nationwide the average is currently €11.01 per square metre, and the numbers creep up to €17.64 in Berlin and €22.30 in Munich.

Prices also went up for buyers

Meanwhile, the market for buy-to-let properties has recovered somewhat, following year-on-year price declines of up to 10 percent at the end of 2022. 

Across Germany, asking prices for existing and new flats stood at 2.3 percent higher in the first quarter than in the previous quarter. 

The average asking price for existing owner-occupied flats was €2,778 per square metre and €3,992 for those which were newly constructed.

Munich also holds the title of the most expensive city for apartment buyers, with square metre prices at €7,346 for old and €9,443 for new flats.

Properties with a poor energy efficiency rating, however, saw prices decrease slightly, Crockford told FAZ.

She added that it was hard to forecast how costs for buyers would develop in the coming year, but that “In the metropolises, I would not assume there will be falling prices.”

Vocabulary

noticeably – spürbar

metropolitan area/conurbation – (der) Ballungsraum 

condominium/owner-occupied flat – (die) Eigentumswohnung

Asking rents – (die) Angebotsmiete

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