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Asking Rents Reaccelerate in German Cities

The rebound in asking rents signals growing pressure on affordability and renewed calls for stronger tenant protection.

Overview

  • The Kiel Institute's Greix index shows asking rents for newly listed flats rose 1.2% quarter-on-quarter and 3.7% year-on-year in Q3 2026, the strongest quarterly jump since early 2025.
  • The increase is led by existing (Bestands-) apartments rather than new builds, with Greix reporting existing-unit rents climbing faster while new‑build offers lag and stay longer on the market.
  • Price pressure is concentrated in major cities: Hamburg recorded the highest annual rise at about 6.7%, and Berlin and Düsseldorf saw notable quarterly gains of roughly 2.1% and 2.0%, respectively.
  • Supply remains the core constraint as new construction lags political targets — 2025 completions were roughly 173,000 versus a 400,000 goal — and many approved projects remain unfinished in places such as Munich.
  • Higher mortgage and construction rates have pushed 10‑year lending costs from about 3.3% in March to roughly 4.5%, keeping would‑be buyers in the rental market and prompting Justice Minister Stefanie Hubig and tenant groups to press for tougher Mieterschutz measures.