Berlin and Brandenburg Face Significant Rent Increases Due to Rising Construction Costs

Mieten for new and existing apartments climb sharply as fewer construction projects are approved, highlighting affordability challenges.

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.