Berlin Rents Surge 12.5% as Housing Shortage Worsens

Population growth and insufficient construction drive a deepening divide in Berlin's housing market, with new residents displacing long-time locals.

The median offered rent in Berlin increased by 12.5% in 2024, reaching €15.74 per square meter, according to the Investitionsbank Berlin (IBB).
Berlin's population grew by 26,951 in 2023, reaching 3.78 million, returning to pre-pandemic growth levels.
High rents in central Berlin, averaging €20 per square meter, are forcing long-time residents to relocate to suburban districts.
The city's housing construction fell short of its annual goal of 20,000 new units, with only 15,965 completed in 2023, the lowest in a decade.
Officials cite high interest rates and construction costs as key barriers to addressing the housing crisis, which disproportionately impacts families and low-income residents.