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RENTING

EXPLAINED: How rents are changing in Germany’s five biggest cities

Rents in Germany have been on the rise recently, but there are significant differences between the country's five most populous cities: Berlin, Hamburg, Munich, Cologne and Frankfurt am Main.

New apartment buildings in the district of Freiham in Munich.
New apartment buildings in the district of Freiham in Munich. Photo: picture alliance/dpa | Carsten Hoefer

Berlin

Rents in the capital have shot up recently.

At the beginning of March, real estate portal Immowelt published a report which showed that, between November 2022 and February 2023, the average rental price per square metre in Berlin rose from €9.86 to €12.55 – an increase of 27 percent.

Prior to this spike in rental prices, Berlin was in the middle of the ranking for rents in German cities with more than 500,000 inhabitants. Now, it’s the second most expensive city in Germany to rent in.

READ ALSO: Berlin rental prices rose by ‘almost a third’ in three months

According to the most recent report on Berlin’s real estate market by realtors Engel & Völkers, there are currently 137,000 apartments too few in Berlin, which is contributing to the increased prices.

Over the last ten years, rents in the capital have increased by approximately 60 percent.

A recent report by real estate portal Immoscout24 also found that, in 2022, rents for new build apartments in Berlin averaged around €17.19 per square meter – an increase of 0.6 percent compared to 2021.

According to the report, the most expensive district in 2022 was Mitte, where the average rent was €15.47 per square metre, followed by Charlottenburg-Wilmesdorf (€15.00) and Friedrichschain-Kreuzberg (€14.85).

Hamburg

Rents in Germany’s second-biggest city by population, have also been moving upwards, though not quite as steeply as in Berlin. In the three months from November 2022 to February this year, the average rental price in the city sunk by one percent from €11.53 per square metre to €11.46.

The longer-term picture, however, shows a steady rise in rents.

According to the Immoscout24 study, over the past five years, landlords in Hamburg have increased basic rents by an average of 18 percent.

View of new apartment buildings in Hafencity, Hamburg.

View of new apartment buildings in Hafencity, Hamburg. Photo: picture alliance/dpa | Marcus Brandt

In 2022, rents for existing buildings rose by 11.9 percent and for new buildings by 8.5 percent. The price per square meter is currently €12.86 for existing buildings and €14.98 in new ones. Broken down by neighbourhood, there are smaller differences than in Berlin.

The two cheapest districts in Hamburg are Bergedorf and Harburg, where the price per square metre for existing apartments costs €11.59 and €11.70 respectively. For new build apartments, the cost in these districts is €14.35 and €14.30 respectively.

READ ALSO: OPINION: Germany’s ruthless housing market is tough on new tenants – but there are winners

In the city’s most sought-after locations – HafenCity, Harvestehude, Uhlenhorst and Rotherbaum –  there are no rental units to be found for under €19 per square metre.

Munich

With a current average rental price of €17.39 per square metre, Munich is by far the most expensive city in Germany to rent in.

Though in the three months between November 2022 and February this year, rents rose by only 4 percent, last year, rents rose by an average of 9.2 percent for existing apartments and 12.8 percent for new builds. In 2022, tenants paid around €17.77 per square metre for existing apartments and as much as €21.37 for new builds.

READ ALSO: Why Germany is seeing the ‘worst housing shortage in 20 years’

When broken down by district, some of the price increases for rents in Munich are enormous. In the Schwanthalerhöhe district, for example, rents for new build apartments rose by 24.1 percent in 2022. Twelve other neighbourhoods also saw an increase of at least 20 percent in the price per square metre of new build apartments last year.  

However, there are still some relatively reasonable rental prices available in Munich. In the districts of Aubing-Lochhausen-Langwied and Feldmoching-Hasenbergl, the price for existing apartments is less than €16 per square meter. For new-build apartments, the most affordable neighbourhoods are Milbertshofen-Am-Hart and also Aubing-Lochhausen-Langwied, where the price per square meter is under €18.

Cologne

Compared to the three largest cities in Germany, rents in Cologne have been increasing at a more steady pace. In 2022, rents rose by an average of 5.9 percent for existing apartments and 9.5 percent for new buildings: the current average price per square meter is €11.69 and €13.72 respectively.

Newly built apartments in the Ehrenfeld district of Cologne.

Newly built apartments in the Ehrenfeld district of Cologne. Photo: picture alliance/dpa | Rolf Vennenbernd

For existing apartments, rents have been falling for six months in every district, but most sharply in Kalk, where there has been a drop of 4 percent. Currently, the city’s cheapest districts are Chorweiler, Mülheim and Kalk, where rents per square metre are less than €11 per square metre in existing buildings, and below €14 for new constructions.

READ ALSO: Why rents for some properties are starting to fall in Germany

Meanwhile, the Ehrenfeld and Nippes districts saw the biggest price jumps for new buildings in 2022.

Frankfurt am Main

In Frankfurt, rents rose by a comparatively moderate 5.9 percent for existing apartments and 6.2 percent for new builds in 2022. The price per square metre is currently on average €13.16 for existing apartments and €15.66 for new buildings. In the Central-West district of the city, rents actually fell by 0.1 percent last year and the price increase in new constructions was also the lowest in this district.

The most affordable district for tenants is Bergen-Enkheim, with a price per square meter of €10.60 for existing buildings and €13.65 for new builds. The next cheapest districts are Harheim, East and West. The most expensive district in Frankfurt for tenants is the city centre, where the average basic rent (without utility costs) is €20.78.

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RENTING

What to know about changes to cable TV fees in Germany this July

Millions of people renting an apartment in Germany will have received letters in recent months about a significant change to cable TV connections happening from July. Do you have to take action?

What to know about changes to cable TV fees in Germany this July

Up to now, many tenants in Germany have been paying cable TV connection fees as part of their Nebenkosten – additional costs – in their rental contract. 

That’s due to a rule called the ancillary cost privilege (Nebenkostenprivileg) dating back to the 1980s which meant landlords in Germany could set up agreements with telecom companies to supply cable network to entire buildings and charge their tenants. 

It typically costs tenants around €5-€9 per month, depending on the contract. 

The law was abolished as part of an amendment to the Telecommunications Act (TKG) and came into force on December 1st, 2021. However, the transition period lasts until June 30th 2024. From July 1st, a new system applies where landlords will no longer be in charge of these contracts and fees. 

READ ALSO: The five weirdest and best German TV shows for improving your German 

Do I have to take action?

If you’re affected, you should have received notice from your landlord about the change. You may also have been contacted by service providers urging you to set up an individual contract to avoid losing your cable TV connection. 

If you want to continue having access to cable TV in your home, you might have to arrange a new contract – but remember that you can shop around to do so, you don’t have to stick with your current provider. 

Will the costs change?

A downside of this change is that your cable costs are likely to go up. An individual contract for cable TV could be a few euros more or even double what tenants currently pay (depending on their current deal with the landlord). 

That’s because landlords are generally able to negotiate better deals for a full building or set of apartments as part of ‘multi-user’ contracts.

READ ALSO: Why tenants in Germany could face higher costs for cable TV this year

However, consumer rights groups expect prices to fall in the long term due to more competition. 

Do I have to pay this new fee?

There’s no obligation. If you want to continue accessing cable TV channels, you can opt for alternatives such as DVB-T2 HD, which offers around 40 channels in high definition with an indoor or rooftop aerial, or satellite television. 

Meanwhile, experts say that if you only use your cable connection for broadband Internet and/or the telephone, you can stick with the contract. If the TV signal is not used, the provider should install a corresponding filter box on the connection. 

Around one in five households in Germany uses the Internet to stream TV rather than using a cable or satellite connection – and this figure has doubled in the past five years. 

It is also possible to take out a contract for cable TV and another for Internet and telephone with a different provider. 

If you have any queries, you should contact a service provider or consumer rights group for advice as soon as possible to look at your options. 

Be wary of salespeople trying to strike a quick deal

The consumer advice centre is warning against so-called media consultants visiting people at home or calling because they may at times put consumers under pressure to sign cable contracts.

Consumer protection organisations advise consumers taken by surprise not to act too hastily. 

If you have any doubts, take some time to think about your options and only conclude contracts after you’ve made a firm decision. 

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