Demand for rental apartments is rising steadily, particularly in the independent cities. While rents in Berlin have recently been under less pressure, Cologne, Leipzig and Stuttgart have seen particularly strong rent increases.
The rental markets in Germany's major cities are showing strong momentum at the start of 2025. "This development underlines the high pressure on the housing market and the need to expand supply through increased new construction activities. Affordable and smaller apartments in particular are in demand," says Dr. Gesa Crockford, Managing Director of ImmoScout24.
Rental price growth is particularly dynamic in Stuttgart: in the first quarter of 2025, asking rents for new lettings in existing properties will rise by 1.9%, the highest rate since 2022. In Cologne, asking rents for new builds will rise by 2.4% and in Leipzig by 2.3%.
People looking to rent in Germany are still facing strong competition - especially in the metropolitan areas, where demand has risen by six percent within a year. In their surrounding areas, interest rose by four percent. The independent cities are also showing strong momentum. Here, demand rose by seven percent within a year. Only rural areas recorded a slight decline of three percent in the same period.
The trend is towards single households: more people in Germany are living alone and paying a higher average rent per square meter for their home. According to the Federal Statistical Office, the rent per square meter was 6.2 percent higher than for households with several people. One possible reason for the higher rent per square meter for single households: People living alone live in smaller apartments, which are often more expensive in relation to the living space.
Single households are particularly widespread in large cities. In cities with more than 100,000 inhabitants, more than half (52%) of households will be single households in 2022, compared to 46% in 2011.
Photo: © Udo Röbenack, Pixabay.
