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Wednesday, February 5

Rents rise faster in Berlin than anywhere else in Germany

With an 8.5 percent surge in late 2024, Berlin rents are rising at almost double the national average.

Photo: IMAGO / Hoch Zwei Stock/Angerer

Wednesday, February 5

Rents rise faster in Berlin than anywhere else in Germany

A new study from the German Economic Institute (Institut der deutschen Wirtschaft) has confirmed what anyone living in Berlin already knows: rents are skyrocketing.

The study found that Berlin rents rose more sharply in the fourth quarter of 2024 than in any other major German city. While the national average rent increase was 4.7 percent, Berlin saw an almost double surge at 8.5 percent. What’s more, this alarming trend shows no signs of slowing. The study notes that only 260,000 new apartments were built across Germany last year, with that number expected to drop to 230,000 in 2025 – both figures falling well short of existing demand.

Of course, this trend didn’t start yesterday. An inquiry by Caren Lay (Die Linke) last November had already revealed Berlin’s status as the frontrunner in rent hikes. In 2014, the price for a newly rented Berlin apartment was €8.10 per square meter; by 2023, it had soared to €16.35. Die Linke has criticised major parties like the SPD for failing to uphold the rent cap introduced in 2015, which was later struck down as unconstitutional by the federal court. Unlike other major parties, Die Linke is now calling for a city-wide rent freeze and additional measures to combat the spiralling cost of housing.