The growth in advertised rents on the German housing markets maintained its momentum throughout 2025. This was reported by Immobilien Zeitung on 9 January 2026, citing an analysis by Immoscout 24. Both rents for existing and new-build properties rose sharply once again. In the fourth quarter of 2025, asking rents for new leases on existing flats rose by an average of 3.7 per cent compared with the previous year, with particularly strong growth in the major cities. According to Immoscout 24, the strongest increases were recorded in Stuttgart, Frankfurt am Main and Hamburg, at 5.4 per cent, 5.1 per cent and 5 per cent respectively.
Despite the already high rent levels in new buildings, asking rents in this segment also rose further, increasing by an average of 3.7 per cent compared with the previous year. The strongest increase was recorded in Cologne at 6.8 per cent, while the smallest increase was in Frankfurt at 2.7 per cent. Parallel to the growth in rental prices, demand for rental apartments declined in all regional categories in the fourth quarter, with the declines in independent cities and rural areas being significantly stronger than in metropolitan areas. In addition, demand from different income groups developed in opposite directions in some cases. While households with lower incomes of up to Euro 2,000 net per month in particular often gave up their search for accommodation due to the price level, demand from households with higher incomes of around Euro 4,000 per month rose.
“The figures illustrate the dramatic consequences of the failed housing policy of recent years, as well as the continuing opportunities for investors in new buildings in major cities and conurbations,’ says Jacopo Mingazzini, CEO of The Grounds. “On the one hand, it is becoming increasingly difficult for low-income tenant households to find a flat at all, while on the other hand, there is stable to growing demand from higher-income households, which, according to our observations, is strongly focused on energy-efficient new buildings. If the situation in the tight housing markets is to improve, there is no way around significantly higher new construction figures. Politicians should concentrate on creating reliable framework conditions and effective incentives for this.”
