Overview

• Rents for new apartments in Berlin and Brandenburg rose by over 15% in 2024, with average costs reaching €12.66 per square meter in Berlin and €12.87 in Brandenburg.
• Existing apartment rents increased more moderately, with Berlin seeing a 4% rise to €6.85 per square meter and Brandenburg experiencing a 3% rise to €5.81 per square meter.
• High construction and financing costs, along with reduced government subsidies, are cited as key drivers of the rent hikes, according to the Berlin-Brandenburg Housing Association (BBU).
• The number of building permits issued in Berlin and Brandenburg dropped to their lowest levels in over a decade, with Berlin seeing a 38% decline and Brandenburg a 20% decline in 2024.
• Advocates call for reduced regulatory requirements and increased state support to address the housing crisis, as affordability for new construction becomes increasingly unattainable.