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.

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 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 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.

Rent Inflation in Germany remained unchanged at 2.10 percent in October. This dataset includes a chart with historical data for Germany Rent Inflation.

In 2023, Berlin Mitte was the most expensive district for apartment rentals, with an average asking basic rent of **** euros per square meter (excluding extra costs). The average for the city in this period was ***** euros per square meter. That was higher than the average rent in the Germany.

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 **** euros. The rent for existing housing was slightly lower at *** euros per square meter. Among the major cities in Germany, Munich had the highest rents.

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.

The rental of construction machinery and equipment has developed positively over the past five years. Overall, the industry has grown at an average rate of 5.2% per year since 2020. In the current year, the industry's total turnover is also likely to increase moderately despite the ongoing economic weakness in building construction since 2022. IBISWorld expects it to amount to €6.8 billion, which corresponds to an increase of 2.4% compared to the previous year. The profit margin of industry players is currently below the average of the past five years. This development is due to the significant rise in costs for operating materials and supplies since the Russian invasion of Ukraine, as well as an increase in personnel expenses over time.Many customers of construction machinery rental companies, such as construction firms, are increasingly focussing on flexibility and cost efficiency when procuring machinery. They rent machines more often because they shy away from the capital commitment associated with purchasing construction machinery. However, new, partly digital rental and sales models have also made the rental of construction machinery more attractive. Accordingly, the majority of industry players have had well-utilised machine fleets in recent years.In the coming years, IBISWorld also expects slight growth in the sector. At the same time, changes in the industry structure are becoming apparent. On the one hand, these developments are being driven by the increasing spread of digital business models, while on the other, international players are increasingly forcing their way into the industry, which is traditionally characterised by SMEs, and intensifying competition for many smaller companies in the sector. Increased customer requirements in terms of machine availability and service quality are coming up against an industry that has been quite fragmented to date, which is likely to encourage consolidation trends in the long term. IBISWorld anticipates an average annual growth rate of 2% in the period from 2025 to 2030. Industry turnover is expected to amount to 7.5 billion euros in 2030.

The overall average cost of logistic space per square meter per month increased slightly across Germany between 2014 and 2023. Munich had the highest overall rent, amounting to *** euros per square meter.

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The present study deals with a special part of sectorial planning: provision of housing. The provision of housing in the Federal Republic of Germany (BRD) is divided in three different areas. Those areas are: Construction and housing industry, the social structure of the inhabitants and the physical structure of housing and housing estates. Governmental intervention measures mainly address those three areas: they try to regulate the housing provision and the rental prices through financial subsidies, the social distribution of housing through definition of target groups and the housing standards through urban planning and technical guidelines. Therefor the scientific investigation of housing provision needs to be about economic, sociological and urban and architectural aspects and needs to relate those aspects. The study of Kerstin Dornhöfer uses an integrated approach of the investigation of housing provision looking at those three aspects. The objective of the study is to develop criteria for the evaluation, planning and implementation of measures for housing provision. “The state controlled housing provision has its origin in the historical development before the Second World War. Besides the material basis of housing provision in the BRD also knowledge about and experiences with comprehensive steering instruments and its effectiveness resulted from the historical development of housing supply and its state controlled steering. This raises the question to what extent this knowledge and experiences had an impact on governmental policies concerning housing provision in the BRD. The description and analysis of the investigation is based on the following guiding questions:- Which steering instruments the BRD uses to achieve higher effectiveness concerning the socio-political postulate of improving the housing circumstances for the broad masses of people?- Could the dependence of housing provision and is governmental steering on the development of the total capital and on landed property , construction and housing construction capital be eliminated or at least gradually controlled?- What was the impact of governmental steering in the BRD?- How did it come to the current discrepancies in spite of all reform efforts and directing interventions?- What conditions were problematic for the improvement of housing circumstances for the broad masses of people? What are the relevant determinants for housing provision? The first part of this study deals with the description of housing provision for broad masses of people since the foundation of the BRD. This time is divided into four periods; each period begins with an important change in laws that indicated a change in in the governmental steering and transformations of economic and social circumstances. The description of the different periods helps to see the governmental steering instruments and its effectiveness regarding the historical circumstances. In the second part of the study the governmental objectives and steering instruments will be questioned and the circumstances of implementation will be identified based in three criteria. Those criteria are: (1) Housing standards and housing quality; (2) rental price (income-rent ratio); (3) Social distribution (broad masses of people as the target group of governmental steering). The question behind this is; if the thesis, which resulted from the historical development of housing provision before the Second World War, that governmental steering only takes place when the economic circumstances require and allow the public intervention and when public pressure forces governmental intervention, is also valid for the BRD.” (Dorhöfer, K., a. a. O., S. 11-13). Data tables in HISTAT:A. Federal Republic of Germany A.01 Development of population, housing stock and occupation density, BRD and West-Berlin (1950-1975)A.02 Ratio of housing stock and private households by size (1950-1974)A.03 Housing completions in the Federal Republic of Germany (1950-1975)A.04 Financing of housing construction in the Federal Republic of Germany, in percent (1950-1975)A.05 Building owners of housing in the Federal Republic of Germany, in percent (1950-1975)A.06 Price indices for residential buildings, cost of living, land without buildings and rents (1950-1975)A.07 Average monthly expenditures per four person worker-household with average income (1950-1975)A.08 Total cost of an apartment in social housing and average land prices in DM (1950-1975)A.09 Average living area, number of rooms per apartment, equipped with central heating system and bathroom in the BRD (1952-1975)A.10 Proportion of apartments per number of rooms per apartment in the Federal Republic of Germany (1952-1973)A.11 Construction activity of non-profit housing companies (1951-1975)A.12 Number of non-profit housing companies and number of members of housing cooperatives (1950-1975)A.13 Housing stock of the nonprofit housing companies and monthly rent (1951-1975) B. West- Berl...

This statistic shows the average rent for apartments in Munich districts in Germany as of September 2017, by apartment size. Schwabing West apartments were the most expensive to rent in general with apartments over *** square meters costing on average 3166 euros per month. The only exception was apartments that were 100 square meters with Alstadt - Lehel costing on average 2701 euros per month as of September 2017.

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 *** square meters was priced at ***** euros per month in Munich, which was significantly more than the same sized apartment costing ***** euros per month in Berlin.

The present study deals with a special part of sectorial planning: provision of housing. The provision of housing in the Federal Republic of Germany (BRD) is divided in three different areas. Those areas are: Construction and housing industry, the social structure of the inhabitants and the physical structure of housing and housing estates. Governmental intervention measures mainly address those three areas: they try to regulate the housing provision and the rental prices through financial subsidies, the social distribution of housing through definition of target groups and the housing standards through urban planning and technical guidelines. Therefor the scientific investigation of housing provision needs to be about economic, sociological and urban and architectural aspects and needs to relate those aspects. The study of Kerstin Dornhöfer uses an integrated approach of the investigation of housing provision looking at those three aspects. The objective of the study is to develop criteria for the evaluation, planning and implementation of measures for housing provision. “The state controlled housing provision has its origin in the historical development before the Second World War. Besides the material basis of housing provision in the BRD also knowledge about and experiences with comprehensive steering instruments and its effectiveness resulted from the historical development of housing supply and its state controlled steering. This raises the question to what extent this knowledge and experiences had an impact on governmental policies concerning housing provision in the BRD. The description and analysis of the investigation is based on the following guiding questions: - Which steering instruments the BRD uses to achieve higher effectiveness concerning the socio-political postulate of improving the housing circumstances for the broad masses of people? - Could the dependence of housing provision and is governmental steering on the development of the total capital and on landed property , construction and housing construction capital be eliminated or at least gradually controlled? - What was the impact of governmental steering in the BRD? - How did it come to the current discrepancies in spite of all reform efforts and directing interventions? - What conditions were problematic for the improvement of housing circumstances for the broad masses of people? What are the relevant determinants for housing provision?

The first part of this study deals with the description of housing provision for broad masses of people since the foundation of the BRD. This time is divided into four periods; each period begins with an important change in laws that indicated a change in in the governmental steering and transformations of economic and social circumstances. The description of the different periods helps to see the governmental steering instruments and its effectiveness regarding the historical circumstances. In the second part of the study the governmental objectives and steering instruments will be questioned and the circumstances of implementation will be identified based in three criteria. Those criteria are: (1) Housing standards and housing quality; (2) rental price (income-rent ratio); (3) Social distribution (broad masses of people as the target group of governmental steering). The question behind this is; if the thesis, which resulted from the historical development of housing provision before the Second World War, that governmental steering only takes place when the economic circumstances require and allow the public intervention and when public pressure forces governmental intervention, is also valid for the BRD.” (Dorhöfer, K., a. a. O., S. 11-13).

Data tables in HISTAT: A. Federal Republic of Germany A.01 Development of population, housing stock and occupation density, BRD and West-Berlin (1950-1975) A.02 Ratio of housing stock and private households by size (1950-1974) A.03 Housing completions in the Federal Republic of Germany (1950-1975) A.04 Financing of housing construction in the Federal Republic of Germany, in percent (1950-1975) A.05 Building owners of housing in the Federal Republic of Germany, in percent (1950-1975) A.06 Price indices for residential buildings, cost of living, land without buildings and rents (1950-1975) A.07 Average monthly expenditures per four person worker-household with average income (1950-1975) A.08 Total cost of an apartment in social housing and average land prices in DM (...

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Europe Commercial Real Estate Market Size 2025-2029

Europe commercial real estate market size is forecast to increase by USD 91.4 billion at a CAGR of 5.7% between 2024 and 2029. European commercial real estate market is experiencing significant growth, with increasing private investment pouring into the sector. The primary catalyst fueling market growth is the increasing aggregate private investment.This trend is driven by a robust economic environment, favorable demographic shifts, and the ongoing recovery from the COVID-19 pandemic.

Market Size & Forecast

  Market Opportunities: USD 31.78 billion
  Future Opportunities: USD 91.4 billion 
  CAGR : 5.7%  

However, this growth comes with challenges,rising interest rates pose a threat to affordability and profitability, potentially dampening investor enthusiasm and increasing borrowing costs. As a result, companies must navigate this complex landscape by carefully assessing potential investment opportunities, considering alternative financing options, and adapting to changing market conditions. In order to capitalize on the market's potential and mitigate risks, strategic planning and agility will be essential for success.

What will be the size of Europe Commercial Real Estate Market during the forecast period?

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European commercial real estate market continues to evolve, presenting dynamic opportunities across various sectors. Property risk assessment and building inspection reports play crucial roles in mitigating potential hazards, ensuring compliance with safety standards. Property tax appeals and portfolio diversification help investors minimize risk and maximize returns. Facility management services, property valuation techniques, and property value metrics enable effective asset management. Data-driven investment strategies, including transaction closing costs, space planning solutions, and development approval processes, facilitate informed decision-making. Capital expenditure planning, portfolio optimization, operating expense control, lease contract review, energy consumption audits, and commercial lease terms are essential for maintaining profitability.
For instance, the adoption of energy management systems in commercial buildings has led to a 10% average reduction in energy consumption, contributing to cost savings and environmental sustainability. Commercial real estate market is expected to grow by 3% annually, driven by these evolving trends and the ongoing demand for efficient, sustainable, and compliant properties.

How is this Europe Commercial Real Estate Market segmented?

Europe commercial real estate market market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029,for the following segments.

Type

  Rental
  Lease
  Sales


End-user

  Offices
  Retail
  Leisure
  Others


End-User

  Corporate
  Investment
  Government


Location

  Urban
  Suburban


Geography

  Europe

    France
    Germany
    Italy
    UK

By Type Insights

The rental segment is estimated to witness significant growth during the forecast period. European commercial real estate market is characterized by dynamic lease renewal negotiations, construction project management, and insurance considerations for green building certification and property refurbishment costs. Zoning regulations compliance and vacancy loss calculations are crucial elements in property acquisition strategy, while property tax optimization and valuation models inform building lifecycle cost analyses. Property management software and tenant occupancy rates are essential for portfolio performance metrics, and market rent surveys guide tenant retention strategies. Portfolio risk management, building code compliance, property data analytics, and rental income projections are integral to asset management strategies. Due diligence processes and capitalization rate analysis are vital during urban planning regulations and space utilization analysis.

In the rental segment, growth is expected to reach over 5% annually, with office rents in the UK, Benelux markets, and peripheral Europe experiencing the highest quarterly growth of 1.8%. However, investment markets remain cautious due to economic uncertainties and rising inflation and finance rates, despite the leasing market's strength and increasing rents. For instance, rental income in the office sector in Paris grew by 3.5% in 2021, reaching €1,122 per square meter per year.

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Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

European commercial real estate market continues to be a significant global investment destina

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In 2022, Altstadt-Lehel was the most expensive district for rent in Munich, Germany, with an average monthly rent of about ** euros per square meter of living space (excluding extra costs). In comparison, some of the more affordable districts, such as Feldmoching-Hasenbergl and Aubing-Lochhausen-Langwied, had average rents of under ** euros per square meter.

This statistic shows the average rent for apartments in Frankfurt districts in Germany as of September 2017, by apartment size. Westend - Sud apartments were the most expensive to rent in general with apartments over *** square meters costing on average 2126 euros per month. The only exception was apartments that were under ** square meters with Bockenheim costing on average *** euros per month as of September 2017.

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 ***** euros per square meter and average rent at *** euros per square meter. Munich topped the ranking with prime and average rents of **** euros and *** euros per square meter, respectively.

Prime rents in the major office markets in German cities are expected to grow year-on-year between 2025 and 2029, according to a May 2025 forecast. The Bavarian state capital Munich is expected to achieve the highest rental growth by 2029, at *** percent per annum-*** percentage points above the average rental growth forecast for the major European markets. In Europe, central city offices had better investment and development prospects than suburban offices.