Overview

• In Q2 2025, new-build apartment prices rose year-on-year in about three-quarters of German regions, with some areas seeing gains above 30 percent.
• Munich and six surrounding counties rank among the nation’s priciest markets, while Potsdam posted the largest annual jump at 11.7 percent.
• National rents climbed 5.9 percent in 2024, with smaller cities like Zweibrücken, Schweinfurt and Pirmasens each recording double-digit increases.
• Low-income renters and middle-class households are under growing strain as rent hikes consistently outpace wage growth.
• The government plans to extend the rent brake and has launched a ‘Bauturbo’ to speed up approvals, while opposition demands for a federal Mietendeckel are intensifying.