Of Germany’s 14 major cities, Berlin has recorded the biggest asking rent increase since November 2022, according to a survey conducted by the German property portal Immowelt. Currently, the average house price in Berlin is 12.55 euros per square meter, an increase of about 3 euros from 9.86 euros in November last year. This is the highest growth rate in Berlin’s history, meaning that Berlin’s monthly rent is the second highest among major German cities after Munich.
The reason for the explosive increase in housing prices in Berlin is the increase in the inflow of population after COVID-19, Ukrainian refugees, slowing construction of new buildings, and the effect of rising housing prices due to the end of the rent ceiling.
For a long time, Berlin has been recognized as a cheaper area than major cities in West Germany, which has caused a large influx of people. As a result, owners who have purchased Berlin properties at low prices are not expected to sell them for the time being.
Felix Kusch, managing director at Immowelt, said Berlin is still on the cheap side of the European capital, but significant solutions should be presented as soon as possible to restore the balance between supply and demand in the long run.