Berlin Rents Surge by 12.5% as Housing Shortage Worsens

Population growth and insufficient construction drive Berlin's rental market to record highs, with stark disparities between supply and demand.

The median rental price in Berlin rose to €15.74 per square meter in 2024, marking a 12.5% increase from the previous year.
This two-year rent hike of €4.20 per square meter is significantly higher than the €3.04 increase seen between 2015 and 2022.
Berlin's population grew by 26,951 residents in 2023, reaching 3.78 million, returning to pre-pandemic growth levels.
Newcomers increasingly occupy central areas, pushing long-time Berliners to more affordable outer districts, creating a 'divided housing market.'
Berlin fell short of its housing construction targets, completing only 15,965 units in 2023, far below the annual goal of 20,000.