The sharp rise in residential rent prices in major German cities is slowing down compared to the rapid growth seen recently, according to an analysis by real estate specialists Jones Lang LaSalle (JLL).
However, outside the major cities, price increases have accelerated further in the first half of the year, the experts said.
Overall, rent prices in Germany are increasing, but purchase prices for residential property in major cities are falling.
The study analyzed around 35,000 rental and 41,000 purchase advertisements for new and existing buildings.
According to JLL, the average asking rent price for apartments in the eight major cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Düsseldorf, Stuttgart, and Leipzig rose by 6.3% in the first half of the year compared to the same period last year.
By contrast, the second half of 2023 saw a higher year-on-year growth of 8.2%.
According to the study, the largest increases in the first half of the year were once again seen in Berlin, with an average of 11.4%, followed by Leipzig (9.8%) and Frankfurt (9.4%).
Sören Gröbel, a research expert for residential property from JLL, said that one of the factors driving rents is the stagnation in residential construction.
The impact of political efforts such as the promotion of new construction and the planned building type E for simpler residential construction will only become apparent with time, Gröbel said.
“From the supply side, pressure on rental prices is likely to remain high in the medium term,” he added.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
