The development of rents currently reflects the mood of the entire real estate market. Although the momentum of rent increases has slowed somewhat, supply remains far too low. Marketing, on the other hand, is taking place in record time.
Many people want to move, but find few suitable offers on the rental market. This has resulted in sluggish mobility, which is now even crippling the economy. However, switching from the rental market to the purchase market is not a solution for many interested parties, as financing interest rates and real estate prices are still too high for most.
Currently, rents in German cities are only rising as fast as the general cost of living. This is according to the latest update of the GREIX rent index published by the Kiel Institute for the World Economy.
Compared to the previous quarter (Q3/2025 to Q2/2025), asking rents rose by 0.5 percent. Adjusted for inflation, they stagnated. Compared to the same quarter last year, rents rose by 3.5 percent in nominal terms and by 1.2 percent adjusted for inflation. This is the lowest annual increase since the end of 2021.
In a quarterly comparison, the trend varied across the eight largest German cities. Rents rose most strongly in Leipzig (+1.1 percent) and Düsseldorf (+0.7 percent). In Munich, Frankfurt am Main, and Cologne, the increase was 0.5 percent in each case, and in Stuttgart it was 0.3 percent. There were slight declines in Hamburg (-0.2 percent) and Berlin (-0.3 percent).
Rent levels vary widely: Munich was at the top of the list at €22.96 per square meter, followed by Frankfurt am Main at €17.55. The middle range is made up of Stuttgart (€16.11), Berlin (€15.82), Hamburg ( ) (€15.62), and Cologne (€15.21). The average price per square meter across all 37 cities and regions was €14.16.
Conclusion: The real estate market is in a "waiting position" and needs noticeable impetus to overcome its stagnation. For prospective buyers, the market is currently relatively predictable, allowing them to search successfully and act prudently.
Photo: © Stephanie Albert, Pixabay
