Immowelt annual comparison: Rents continue to rise – Potsdam in the midfield

Immowelt annual comparison: Rents continue to rise – Potsdam in the midfield

According to a report by www.maz-online.de,

The real estate provider “Immowelt” recently published its annual comparison of asking rents for existing apartments in 80 major German cities. The current analysis shows that asking rents have increased in 56 of 80 cities examined in 2023, some even by a remarkable 10 percent. The situation is further exacerbated by high demand and the lack of new housing units. Potsdam recorded a 2.4 percent increase in rent, bringing it to 10.27 euros per square meter. However, compared to other large cities, Potsdam is still positioned in the middle field.

The effects on the real estate market are diverse. Rents in Berlin rose by 2.6 percent, making the city one of the most expensive rental markets in Germany. Rents have also increased in Stuttgart and Hamburg, with Stuttgart offering more expensive rental apartments. In western Germany, cities such as Kaiserslautern, Dortmund and Hagen are seeing the largest rent increases, likely due to influx and increased demand for rental apartments. On the other hand, there was a slight decrease in asking rents in 22 of the cities examined. Munich and Frankfurt are seeing slight declines, possibly indicating that the limits of affordability are approaching in these high-priced cities. Nevertheless, Munich remains the most expensive German city to live in.

The general trend of rising rents in major cities is expected to continue as demand is high and supply is limited. This could lead to more people moving to surrounding areas, which in turn could lead to an increase in property prices outside major cities. The development of the real estate market in the coming years should therefore be monitored closely in order to be able to react appropriately.