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Housing in large cities: asking rents are no longer rising as quickly

2021-06-30T16:59:20.123Z


For a long time, rental prices in major German cities only knew one direction. According to a report by the federal government, numerous new buildings have now slowed this development.


Enlarge image

Rental apartments in Berlin: an estimated 300,000 apartments will be completed in 2020 alone

Photo: Wolfgang Kumm / dpa

The Federal Constitutional Court had recently tipped the Berlin rent cap, but rents may not have increased so much in recent years.

In any case, the rise in asking rents in Germany has slowed down according to a current report by the federal government.

"Since 2019 there has been a noticeable decline in the dynamics of nationwide asking rents," says the draft of the fourth report on the housing and real estate industry in Germany, which the cabinet is due to adopt on Wednesday.

The paper is available to the dpa news agency, and the online portal “The Pioneer” reports on it.

Asking rents can be understood as the rental prices at which apartments are currently being offered.

New construction dampens prices

The tense situation on the housing markets of many cities and regions that has been observed since 2012 has initially deteriorated further, according to the report.

In large cities in particular, the high demand for living space has led to rising rents, they say.

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Since 2019, however, the increase in nationwide asking rents has slowed noticeably, it is said. In large cities in particular, increased new building activity has a dampening effect on the increase in rents. According to the report, the housing markets have reacted to the high demand: The number of apartments completed in 2019 rose by two percent compared to 2018 to around 293,000. Compared to 2009, this corresponds to an increase of around 84 percent. An estimated 300,000 apartments were completed in 2020. In short: the greater the supply of living space, the lower the rents.

At the same time, according to the report, the increase in asking rents for advertised apartments has decreased since 2019: in 2018, rents for re-letting rose by 5.4 percent compared to the previous year, by only 3.6 percent in 2019 and by 2.7 percent in 2020.

Initial rental rents for newly built apartments also showed declining rates of increase: In 2019, initial rental rents rose by 7.6 percent compared to the previous year.

The increase decreased to 5.4 percent in 2020.

apr / dpa

Source: spiegel

All business articles on 2021-06-30

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