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Germany’s Rental Squeeze Deepens as Rents Rise, Listings Recede, and Furnished Lets Hit Record

Experts say slow approvals and low completions will delay relief.

Overview

  • New GREIX data show advertised rents rose 4.5% year over year in Q4 2025, roughly twice inflation, with quarterly increases led by Cologne (+3.4%) and Munich (+1.9%).
  • The number of rental listings fell 7% from a year earlier and sits about 20% below 2015 levels, pointing to tenants holding leases and more off-market placements.
  • Furnished or fixed-term offers reached a nationwide high of 17%, nearly a quarter in major cities and about one third in Munich, where average asking cold rent is €23.35 per square meter.
  • The Pestel Institute’s Wohn-Monitor estimates a shortfall of roughly 1.4 million dwellings and says about 400,000 new homes a year are needed versus roughly 200,000 likely to be completed.
  • Berlin’s pledged ‘Bau-Turbo’ and €9 billion for social housing in 2026–27 are in place, but housing groups and researchers caution they will not quickly lift completions, as public polling strongly favors expanded state support.