In 2022, Berlin Mitte was the most expensive district for apartment rentals, with an average asking basic rent of 14.5 euros per square meter (excluding extra costs). The average for the city in this period was 11.54 euros per square meter.

In 2022, Berlin Mitte was the most expensive district in Berlin, Germany, for new rental contracts. Median rents show the middle value of rent expenditure, meaning that 50 percent of newly rented apartments in Berlin Mitte in 2022 had rental costs exceeding 15.19 euros per square meter, and 50 percent of apartments had rents below this value. Meanwhile, Friedrichshain-Kreuzberg witnessed the highest rental price increase since 2018.

Rents in Germany continued to increase in all seven major cities in 2024. The average rent per square meter in Munich was approximately **** euros — the highest in the country. Conversely, Düsseldorf had the most affordable rent, at approximately **** euros per square meter. But how does renting compare to buying? According to the house price to rent ratio, house prices in Germany have risen faster than rents, making renting more affordable than buying. Affordability of housing in Germany In 2023, Germany was among the European countries with a relatively high house price to income ratio in Europe. The indicator compares the affordability of housing across OECD countries and is calculated as the nominal house prices divided by nominal disposable income per head, with 2015 chosen as a base year. Between 2012 and 2022, property prices in the country rose much faster than income, with the house price to income index peaking at *** index points at the beginning of 2022. Slower house price growth in the following years has led to the index declining, as incomes catch up. Nevertheless, homebuyers in 2024 faced significantly higher mortgage interest rates, contributing to a higher final cost. How much does buying a property in Germany cost? Just as with renting, Munich was the most expensive city for newly built apartments. In 2024, the cost per square meter in Munich was almost ***** euros pricier than in the runner-up city, Frankfurt. Detached and semi-detached houses are usually more expensive. The price gap between Munich and the second most expensive city, Stuttgart, was nearly ***** euros per square meter.

The monthly rent per square meter on the primary shopping streets in Germany's capital measured between 70 and 290 euros in the first half of 2023. On Tauentzienstraße, retailers had to pay on average 290 euros per square meter for a new letting of 100 square meters on a ground level with a six-meter shopfront. Berlin is one of the most expensive cities for prime high street retail real estate in Germany.

This statistic shows the average rent for apartments in Berlin, Frankfurt, and Munich in Germany as of 2016, by apartment size. It showed that an apartment of 120 square meters was priced at 2,243 euros per month in Munich, which was significantly more than the same sized apartment costing 1,493 euros per month in Berlin.

In 2023, Frankfurt and Munich were the German cities with the highest prime rents for office real estate, but Berlin had the highest average rent. In Munich, the prime office rent amounted to 48 euros per square meter, while the average rent was twice lower, at 23.85 euros per square meter. Prime rents refer to the top price segment in the market, usually buildings in the most desired locations and of the highest specifications.

The average rent price of residential real estate in Germany was approximately two euros higher for newly built properties than existing ones in 2023. Rents have increased steadily since 2004 and in the fourth quarter of 2023, the average square meter rent for a newly constructed property reached 11.9 euros. The rent for existing housing was slightly lower at 9.9 euros per square meter. Among the major cities in Germany, Munich had the highest rents.

In 2024, the rental index in Germany reached 107.5 index points. The index was set to 100 in 2020, which means that compared to then, rent in Germany increased by 7.5 percent. Munich saw the highest average rent price among the larger German cities.

Amsterdam is set to maintain its position as Europe's most expensive city for apartment rentals in 2025, with median costs reaching 2,500 euros per month for a furnished one-bedroom unit. This figure is double the rent in Prague and significantly higher than other major European capitals like Paris, Berlin, and Madrid. The stark difference in rental costs across European cities reflects broader economic trends, housing policies, and the complex interplay between supply and demand in urban centers. Factors driving rental costs across Europe The disparity in rental prices across European cities can be attributed to various factors. In countries like Switzerland, Germany, and Austria, a higher proportion of the population lives in rental housing. This trend contributes to increased demand and potentially higher living costs in these nations. Conversely, many Eastern and Southern European countries have homeownership rates exceeding 90 percent, which may help keep rental prices lower in those regions. Housing affordability and market dynamics The relationship between housing prices and rental rates varies significantly across Europe. As of 2024, countries like Turkey, Iceland, Portugal, and Hungary had the highest house price to rent ratio indices. This indicates a widening gap between property values and rental costs since 2015. The affordability of homeownership versus renting differs greatly among European nations, with some countries experiencing rapid increases in property values that outpace rental growth. These market dynamics influence rental costs and contribute to the diverse rental landscape observed across European cities.

In Germany, the light industrial and logistics sector has been growing and occupying more real estate space, respectively. That is especially valid for Berlin, the city with the highest logistics take-up in 2022. Berlin was also among the top-three most expensive markets in terms of renting, with the prime rent at eight euros per square meter and average rent at 6.9 euros per square meter. Munich topped the ranking with prime and average rents of 10.5 euros and 8.7 euros per square meter, respectively.

In Germany, apartments were most expensive in Munich, with the average square meter price as high 9,620 euros. In Cologne, on the other hand, the average square meter price was about 5,240 euros. According to the house price index in Germany, house prices in the country have risen steadily in recent years.

Munich, Berlin, and Frankfurt am Main were the most expensive German cities for prime high street retail real estate in 2023. In the second quarter of the year, the monthly rent per square meter on the primary shopping street in Munich, Kaufingerstraße-Marienplatz, amounted to 340 euros per square meter. On Tauentzienstraße, Berlin, retailers paid on average 290 euros per square meter for a new letting of 100 square meters on a ground level with a six-meter shopfront.

Most of the German population rented their housing. In 2023, around ** million people did so, compared to roughly **** million who had their own house. The German real estate market does offer different housing options, but it is also an increasingly tough one for tenants and future homeowners to navigate amid the ongoing recession. Competitive and expensive Becoming a homeowner is getting more and more difficult in Germany. After almost a decade of uninterrupted growth, the market has entered a period of downturn. For years, homebuyers could access cheap credit, with mortgage rates as low as *** percent. However, in 2022 and 2023, mortgage rates have increased strongly to over **** percent, making it much more expensive to invest in residential property. In addition to that, prices for owner occupied houses have increased by over ** percent since 2015, house price growth had also overtaken that of rentals the same year, making renting the cheaper living option, especially for younger people. The summary of the housing situation sounds familiar worldwide: fierce competition in urban areas when searching for rentals, with demand far outstripping supply, as well as rising property prices for those considering a house purchase. Somewhere to live The decision to rent rather than buy may occur for various reasons. Tenants may simply not be ready financially to buy a home, be that a house or apartment, or they would not be considered by a bank for a loan based on their current earnings. They may be pressed for time and hope to find a place to rent quicker, while buying a home is a long-term commitment, leading to different types of costs and legalities. A ***************** of people lived in shared apartments in recent years, but figures had not changed so much as to rule this type of housing out as a popular option. Shared or not, the average rent prices of residential property in Germany have been going up year after year, both for new buildings and older ones.

In 2024, prime rent in Germany's leading office locations was forecast to be 40.9 euros per square meter. Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Munich, Cologne and Stuttgart are the locations in this context.

The value for 2024 represents a forecast value. The seven top locations shown include: Berlin, Hamburg, Munich, Cologne, Frankfurt am Main, Stuttgart and Düsseldorf. In 2024, the prime rent for retail properties in the aforementioned cities averaged around 251.60 euros per square meter. According to the source, the prime rent represents an average of the top 3 to 5 percent of lettings in the market, meaning that the figure quoted does not correspond to the absolute prime rent.

The sixth arrondissement of Paris was the area with the highest residential real estate price in the French capital as of May 2025. In this arrondissement, which includes several historical sites like Saint-Germain-des-Prés, the Académie Française, and the Jardin du Luxembourg, the average price per square meter amounted to over ****** euros. Paris is known for being one of the most expensive European cities to rent an apartment. The price difference in the twenty arrondissements of Paris The French capital is divided into twenty arrondissements, which correspond to administrative districts. Because of their geographical situations in regards with the economic centers of the city of Paris, as well as their environments and the living conditions they offer, arrondissements do not have the same average price per square meter. For example, the average square meter price for an apartment in cosmopolitan districts like the 19th and the 20th arrondissements, located in the northeastern part of the city, amounted to around ***** euros, compared to close to ****** euros in Le Marais (4th arrondissement). Paris was by far the most expensive city in France, regardless of the location of the accommodation. In 2023, the average price per square meter for rental flats reached ** euros in Paris and ** euros in Marseille, France’s second-largest city. The rise in rental prices in European cities It appears cities in Europe have seen their rental prices increasing over the past years. In Germany, for instance, if Berlin used to be described as “poor but sexy” (to quote Berlin’s former mayor Klaus Wowereit), it appears that the German capital is not unaffected by the rise in rents. From 2016 to 2022, the average rent price of residential property in Berlin went from *** euros per square meter to **** euros five years later.

Between 2008 and 2022, the homeownership rate in Germany decreased slightly. In 2022, about 46.7 percent of the population lived in an owner-occupied dwelling. This makes Germany one of the countries with the lowest homeownership rate and the biggest rental residential real estate market in Europe.

The largest age groups among Berlin’s residential population were aged 25-39 and 40-59 years. The latter was actually the most represented age group in the German capital. The age group with the least number of residents were babies aged younger than one year. Slowly growing population Berlin’s residential population has been growing in recent years, though at a slow pace. Generally, the urban population in Germany has been increasing, with over 77 percent living in cities. Berlin does not have the most expensive rent space in Germany, compared to Munich in the south or Frankfurt in central Germany, which could be a draw for younger age groups moving to the capital. On the other hand, just as in the rest of the country, the city’s age group structure is affected by a struggling birth rate. Uncertain future Based on recent figures, Berlin’s total population was almost at four million. Germany’s population count currently stands at almost 84.5 million and is forecast to decrease rather than increase in the 2020s.

The nominal price of residential properties in Germany in the fourth quarter of 2024 showed a modest increase of **** percent. This marks a recovery from previous declines, as the annual house price growth had turned negative in the earlier quarters of 2023, where house prices fell by over ** percent. Adjusted for inflation, the decrease was also noted at ***** percent in the fourth quarter of 2024. This trend could be observed across the major German cities.