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German Advertised Rents Cool in Q3 With Lowest Yearly Rise Since 2021

Researchers point to affordability limits, warning that scant new construction will sustain the squeeze.

Overview

  • Offered rents rose 0.5% quarter-on-quarter in Q3, which left them effectively flat after inflation, according to the IfW’s Greix index.
  • Year over year, asking rents increased 3.5% nominally and 1.2% in real terms, marking the softest annual gain since late 2021.
  • Apartments were rented out more quickly, with average listing duration slipping to about 24 days, highlighting persistent demand.
  • Among major cities, Leipzig led with a 1.1% quarterly rise and Düsseldorf with 0.7%, while Hamburg and Berlin posted slight declines.
  • Price levels diverged widely, with Munich averaging €22.96 per square meter and Leipzig around €10.14, as the index aggregates data from 37 cities and regions.