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Nachrichten, Termine, Experten
Nachrichten, Termine, Experten
idw - Informationsdienst
Wissenschaft
Rents in German cities are now rising at the same rate as the general cost of living. Meanwhile, the supply of apartments is low, and they are being relet at nearly record speed. This is reflected in the latest update of the GREIX Rental Price Index, published by the Kiel Institute for the World Economy. The index analyzes asking rents for apartments based on data from the "VALUE Marktdatenbank" across 37 German cities and regions.
Compared to the previous quarter (Q3 vs. Q2 2025) asking rents for apartments rose by 0,5 percent. However, adjusted for inflation, they stagnated. Compared to the same quarter last year, rents increased by 3,5 percent in nominal terms and by 1,2 percent when adjusted for inflation, marking the lowest annual increase since late 2021.
"Price dynamics in the rental market have cooled significantly following the sharp increases of recent years," said Jonas Zdrzalek, the head of the GREIX project at the Kiel Institute. "On average, rents are now rising at the same rate as inflation. At the same time, apartments are being rented more quickly, highlighting the continued high demand for housing."
Uneven development in major cities
In a quarter-on-quarter comparison, the eight largest German cities exhibited varying developments. Rents rose most sharply in Leipzig (1.1 percent) and Düsseldorf (0.7 percent). Munich, Frankfurt am Main, and Cologne saw a 0.5 percent increase, while Stuttgart experienced a 0.3 percent increase. Meanwhile, there were slight declines in Hamburg (-0.2 percent) and Berlin (-0.3 percent).
Rental prices vary greatly. Munich had the highest average rent in the third quarter, at € 22.96 per square meter, followed by Frankfurt am Main, at € 17.55. Stuttgart (€ 16.11), Berlin (€ 15.82), Hamburg (€ 15.62), and Cologne (€ 15.21) were in the middle of the pack, while Düsseldorf (€ 14.40) and Leipzig (€ 10.14) were at the lower end. The weighted average price per square meter across all cities was € 14.16.
Notable changes in smaller towns
Potsdam (+3.4 percent) and Erfurt (+3.2 percent) experienced notable rent increases. North Rhine-Westphalia also saw significant hikes, with Hamm (+1.8 percent), Mönchengladbach, and Wuppertal (+1.6 percent) all rising well above average. Meanwhile, declines were recorded in Bielefeld (-1.3 percent), Bocholt (-0.6 percent), and Münster (-0.4 percent).
At € 14.48/m² in Potsdam, € 14.27/m² in Augsburg, and € 13.74/m² in Münster, some smaller cities are on a par with major cities. The lowest rents are in Chemnitz (€ 6.15), Gelsenkirchen (€ 7.42), and Duisburg (€ 8.21).
Time-on-the-market almost at an all-time low—supply shortage high
Compared with the previous quarter, the number of rental properties on offer rose by 3.8 percent, but it was low in the long-term comparison, at around 15 percent less than in 2015. In Hamburg and Leipzig, the number of listings has nearly halved since then.
The average listing duration fell to just over 24 days in the third quarter, which is almost one day less than the previous quarter and four days less than the same quarter last year.
From a historical perspective, this figure is extremely low. When data collection began around ten years ago, the average listing duration was 34 days. However, it briefly fell to an even lower level than it is now.
"These figures show that the supply shortage continues despite moderate price increases. Even with only moderate rent increases, the market for apartment seekers is extremely tight, especially in major cities," says Zdrzalek. "Without a noticeable increase in new construction, the situation is unlikely to improve."
Read the full report now: GREIX Rental Price Index Q3 2025: Rents only slightly higher time on market keeps falling (https://www.kielinstitut.de/publications/greixrental-price-indexq32025-rents-onl...)
GREIX Rental Price Index
The GREIX Rental Price Index provides a detailed analysis of rental price trends in 20 cities and regions. Price changes can be viewed in interactive graphs for various time periods and based values (index and price per square meter). Discover now: https://www.kielinstitut.de/institute/research-centers/macroeconomics/macrofinan...
Methodological note
The price development of the GREIX Rental Price Index is calculated as an index. This allows statistical methods (hedonic method) to be used to mitigate price distortions that often arise when using average price per square meter. For instance, if a high number of apartments in a prime location or in an extraordinary condition are sold, this can inflate average prices per square meter. However, such fluctuations may not reflect a general increase in real estate values. Using hedonic regression methods, specific property characteristics do not cause upward or downward distortions in the price trend.
About the GREIX Rental Price Index
What is the GREIX rental price index?
It is a rental price index for Germany, based on listed apartment rents from several platforms. It tracks rental price developments in individual cities since 2012 and is based on millions of listings. This dataset can be used to analyze trends in the rental market and compare them with the known price development of the GREIX sales price index.
What data and methods are used to create the indices?
Data is analyzed using the “VALUE Marktdatenbank” (https://www.value-marktdaten.de/portfolio/immobilienmarktdaten/). This database contains an extensive collection of carefully prepared real estate market data from over 100 sources. Prices are analyzed using the latest scientific methods and statistical procedures (hedonic regression method). Therefore, GREIX stands for the highest scientific data quality.
Who finances the GREIX rental price index?
The GREIX rental price index is a Kiel Institute for the World Economy project. The aim is to increase transparency in the rental market. Different price indices for 20 cities and regions are freely accessible at https://www.kielinstitut.de/institute/research-centers/macroeconomics/macrofinan.... The dataset will gradually be expanded to include more cities.
Media Contact:
Elisabeth Radke
Head of Outreach
T +49 431 8814-598
elisabeth.radke@kielinstitut.de
Kiel Institute for the World Economy
Kiel Office
Kiellinie 66
24105 Kiel
Germany
Berlin Office
Chausseestraße 111
10115 Berlin
Germany
Contact
+49 431 8814-1
www.kielinstitut.de
Jonas Zdrzalek
Kiel Institute Researcher
jonas.zdrzalek@kielinstitut.de
Steffen Zetzmann
Kiel Institute Researcher
steffen.zetzmann@kielinstitut.de
https://Discover the GREIX Rental Price Index: https://www.kielinstitut.de/institute/research-centers/macroeconomics/macrofinan...
Price development market segments
Copyright: Kiel Institute for the World Economy
Price development major cities and GREIX
Copyright: Kiel Institute for the World Economy
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