Comparing Median Rents in Germany: Cities with Lowest and Highest Rent
Are you looking to rent in Germany? Whether you’re seeking the lowest rent possible or want to explore cities with the highest rent and rent increases, this blog post is for you.
Key Takeaways
- The average rent growth between 2010 and 2022 for the cities with the lowest rent increases was 1% – 2% per year.
- The largest rent increase in the last twelve years took place in Berlin, where rents rose by 112% or almost 10% per year.
- Hagen and Chemnitz are the only two cities that remain among the cities with the lowest rents.
- Unsurprisingly, Munich and Frankfurt are the cities with the highest rents in 2010 and will remain so in 2022.
Introduction
If you’re renting in Germany, finding affordable rent and minimal rent increases is crucial. On the other hand, real estate investors seek higher rents that increase significantly to maximize passive income. In this blog post, we will dive into four different aspects of median rents in Germany:
- the cities with the lowest rent,
- the cities with the highest rent,
- the cities with the lowest rent increase since 2010, and
- the cities with the highest rent increase since 2010.
By analyzing data from various studies, including ImmoWelt studies comparing rents from 2010 to 2020, as well as other studies covering rents from 2020 to 2022, we aim to provide valuable insights into the German real estate market.
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Cities with Lowest Rent in Germany
Let’s begin by exploring the ten cheapest cities to rent in Germany. Comparing the rents in 2010 and 2022, we can see significant variations. However, some cities remain consistently affordable, despite changes in rent prices over time. For example, Leipzig, with an increase of 46% over the past 12 years, has emerged as one of the top 20 German cities with substantial rent increases.
Investors are drawn to Leipzig due to its growth projections, exemplified by property development projects such as those by the Eteon Group. By investing in Leipzig through the GermanReal.Estate Marketplace, you can benefit from attractive interest rates and seize opportunities in this promising market.
Cities with Highest Rent in Germany
Moving on, let’s focus on the most expensive cities to rent in Germany. Unsurprisingly, Munich and Frankfurt consistently rank as the most expensive cities in the country. However, it’s noteworthy that Berlin, once considered more affordable, has experienced a drastic shift in rental prices. In 2010, Berlin had a rent of 5.90€ per square meter, but in 2022, it soared to 12.50€ per square meter, placing it fourth on the list of the most expensive German cities to rent.
As a result, experts advise against purchasing properties in the city centers of these expensive “A” locations and recommend exploring more favorable “B” or “C” locations to maximize investment potential. To understand the location ranking, you can read the linked article.
Cities with Lowest Rent Increase in Germany
Next, let’s look at the German cities that experienced the lowest rent increases from 2010 to 2022. Let’s look at Chemnitz for this. At a supposed 13%, the rent increase doesn’t seem so bad, but if we break this down to the individual years, it means a rent increase of only 1% per year.
Even in the better cities with the lowest rent increases in Germany, the rise is only just under 24%, such as Jena and Solingen. Here the increase per year is only about 2%.
Cities with Highest Rent Increase in Germany
Now, let’s turn our attention to the cities that witnessed the highest rent increases in Germany. Frankfurt and Offenbach are at the lower end with a 4.5% year-over-year increase, followed by other cities that experienced substantial growth rates. Surprisingly, Heilbronn, a city between Stuttgart and Mannheim, stands out with a remarkable 64% increase in rents.
However, the most astounding rent increase over the last decade occurred in Berlin, with a staggering 112% or almost 10% year-over-year increase. This trend underscores the booming rental market in Berlin, as confirmed by ImmoWelt recent study highlighting a significant 27% increase in rents in just the last three months.
Conclusion
In conclusion, understanding the rental landscape in Germany is essential for both renters and real estate investors. While some cities remain consistently affordable, others have experienced drastic shifts in rental prices over the years. Leipzig has emerged as a promising investment opportunity with significant rent increases, while Munich and Frankfurt maintain their positions as the most expensive cities to rent in Germany.
In conclusion, the German rental market offers a diverse range of cities with varying rent prices and growth patterns. While some cities remain affordable and stable, others have seen dramatic increases in rental costs. For renters, it’s crucial to explore options in more affordable locations, such as Leipzig or other “B” and “C” cities, to find the best value for your money. Meanwhile, real estate investors should consider the potential for growth and profitability in cities like Frankfurt and Berlin but also keep an eye on emerging opportunities in less expensive locations.
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