RENTS in Germany have once again risen at an accelerated pace, with eastern parts of Germany and the capital Berlin being particularly affected, the German Economic Institute (IW) announced. “In the third quarter, rents nationwide rose by 5.8 percent compared to the same period last year,” the statement from the German Economic Institute (IW), based in Frankfurt am Main, said.

The accelerated rise in rental prices is linked to rising interest rates and inflation, which is causing many to give up on the possible purchase of their own apartment and turn to the rental housing market. Pressure on the rental property market has also increased due to the arrival of over a million refugees from Ukraine, who are mostly settling in larger cities.

“Increased demand is also affecting price increases. The momentum is intensifying,” said real estate expert Michael Voigtländer. Rental prices rose the least where prices had already reached the limits of citizens' purchasing power. This is most the case in cities such as Munich, Frankfurt, and Cologne with their surrounding areas.

Rents rose the most in regions where it had previously been possible to find relatively affordable housing, such as the federal states of Brandenburg (price increase of 9.1 percent) and Mecklenburg-Western Pomerania (10.3 percent).

In the capital Berlin, the rise in rents also continued, which in this quarter are 8.3 percent higher than in the same period last year. Rental prices in Berlin have doubled over the past 10 years, so that on average 12 euros in rent is paid per square meter.

Source: index.hr