Authored by the expert who managed and guided the team behind the Germany Property Pack
Everything you need to know before buying real estate is included in our Germany Property Pack
Germany is one of Europe's biggest rental markets, with over half of households renting rather than owning.
In this article, we cover current rental prices in Germany, neighborhood trends, tenant preferences, and landlord costs, all updated for January 2026.
We constantly update this blog post to reflect the latest data and market shifts.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Germany.
Insights
- Germany's market-active vacancy rate sits at just 2.0 to 2.3%, meaning only about 1 in 45 rentable apartments is available in January 2026.
- Rental listings in Germany clear in roughly 24 days on average, down from 34 days a decade ago.
- Asking rents in major German cities like Munich and Frankfurt reach 15 to 23 euros per square meter, more than double the national average of about 9.25 euros.
- Year-over-year rent growth in Germany has cooled to around 3% in 2026, the slowest pace since late 2021.
- Germany needs roughly 320,000 new housing units per year through 2030, but construction is falling short, keeping pressure on rents.
- Operating costs (Nebenkosten) in Germany average 2.67 euros per square meter monthly, adding 80 to 200 euros depending on apartment size.
- Furnished rentals command a premium in Germany's big cities, where affordability constraints push mobile tenants toward flexible options.
- Germany's new property tax (Grundsteuer) reform took effect January 1, 2025, and landlords can pass this cost to tenants through service charges.
What are typical rents in Germany as of 2026?
What's the average monthly rent for a studio in Germany as of 2026?
As of early 2026, the average monthly rent for a studio in Germany is around 280 euros (about 290 USD), based on a typical 30-square-meter unit at the national asking-rent level.
Most studios in Germany rent between 200 and 450 euros per month, with the lower end in smaller eastern cities and the higher end in Munich or Frankfurt.
The main factors causing studio rents to vary within Germany are location, building age (modern versus Altbau), and proximity to transit or universities, which can push rents 30 to 50% above average.
What's the average monthly rent for a 1-bedroom in Germany as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom in Germany is around 460 euros (about 480 USD), based on a typical 50-square-meter unit.
Most 1-bedroom apartments in Germany rent between 350 and 700 euros per month, depending on city and neighborhood quality.
In Germany, the cheapest 1-bedroom rents are in eastern cities like Chemnitz or Halle, while the highest are in Munich's Schwabing, Berlin's Mitte, and Frankfurt's Westend, where they can exceed 800 euros monthly.
What's the average monthly rent for a 2-bedroom in Germany as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom in Germany is around 700 euros (about 730 USD), based on a typical 75-square-meter unit.
Most 2-bedroom apartments in Germany rent between 500 and 1,100 euros per month, with the range widening between budget and premium markets.
The cheapest 2-bedroom rents in Germany are in eastern cities like Leipzig or Magdeburg, while the most expensive are in Munich's Bogenhausen, Hamburg's HafenCity, and Berlin's Charlottenburg, often exceeding 1,500 euros monthly.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Germany.
What's the average rent per square meter in Germany as of 2026?
As of early 2026, the average rent per square meter in Germany is around 9.25 euros (about 9.65 USD) for existing unfurnished apartments.
Rent per square meter in Germany ranges from about 6 euros in affordable eastern cities to over 20 euros in premium neighborhoods of Munich, Frankfurt, or Hamburg.
Compared to other major European markets, Germany's national average sits below London or Paris but above most Eastern European capitals, though Munich is among the priciest in the eurozone.
In Germany, rent per square meter rises above average for properties with energy-efficient heating, modern bathrooms, balconies, and locations near U-Bahn or S-Bahn stations.
How much have rents changed year-over-year in Germany in 2026?
As of early 2026, asking rents in Germany have risen by approximately 3% compared to January 2025, the slowest annual growth since late 2021.
The main factors driving rent changes in Germany this year are continued housing undersupply in major cities, stable demand from young professionals and students, and cooling construction activity.
This year's rent growth of about 3% represents a clear slowdown from the 5 to 7% increases seen in 2022 and 2023, suggesting the market is stabilizing.
What's the outlook for rent growth in Germany in 2026?
As of early 2026, projected rent growth in Germany is expected to remain moderate at around 2 to 4%, with the strongest pressure in major cities and university towns.
Key factors likely to influence rent growth include persistent housing undersupply (federal forecasts estimate 320,000 new units needed annually through 2030), continued urbanization, and sluggish construction starts.
Neighborhoods expected to see the strongest rent growth include Berlin's Kreuzberg and Friedrichshain, Munich's Maxvorstadt, Hamburg's Eimsbüttel, and university-adjacent areas in Frankfurt and Cologne.
Risks that could cause rent growth to differ from projections include economic downturns, changes to rent control policies (Mietpreisbremse), or a surprise uptick in housing completions.
We have made this infographic to give you a quick and clear snapshot of the property market in Germany. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Germany as of 2026?
Which neighborhoods have the highest rents in Germany as of 2026?
As of early 2026, the neighborhoods with the highest rents in Germany are Munich's Altstadt-Lehel (around 23 euros per square meter), Frankfurt's Westend (about 19 euros), and Hamburg's HafenCity (roughly 18 euros).
These premium neighborhoods command top rents because they combine central locations, excellent transit, high-quality building stock, and proximity to business districts.
The typical tenant profile in these high-rent German neighborhoods includes senior professionals, corporate executives, and affluent expats prioritizing convenience.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Germany.
Where do young professionals prefer to rent in Germany right now?
The top three neighborhoods where young professionals prefer to rent in Germany are Berlin's Kreuzberg, Munich's Maxvorstadt, and Hamburg's Sternschanze, all known for lively atmospheres and good transit.
Young professionals in these neighborhoods typically pay between 550 and 900 euros per month for a 1-bedroom.
What attracts young professionals is the mix of walkability, vibrant cafe scenes, coworking spaces, and quick U-Bahn or S-Bahn access to city centers.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Germany.
Where do families prefer to rent in Germany right now?
The top three neighborhoods where families prefer to rent in Germany are Berlin's Zehlendorf, Munich's Bogenhausen, and Hamburg's Eppendorf, all offering green spaces, quiet streets, and good schools.
Families in these neighborhoods typically pay between 1,000 and 1,800 euros per month for a 2 to 3-bedroom apartment.
What makes these neighborhoods attractive to families is the combination of parks, playgrounds, safe cycling paths, and reliable public transit to city centers.
Top-rated schools nearby include Berlin International School in Zehlendorf, Munich International School accessible from Bogenhausen, and Gymnasium Eppendorf in Hamburg.
Which areas near transit or universities rent faster in Germany in 2026?
As of early 2026, the areas near transit or universities that rent fastest in Germany are Berlin's Mitte (near Humboldt University), Munich's Maxvorstadt (near LMU and TUM), and Hamburg's Rotherbaum (near University of Hamburg).
Properties in these high-demand areas typically stay listed for only 15 to 20 days, compared to the national urban average of around 24 days.
The typical rent premium for properties within walking distance of transit or universities is about 10 to 20%, adding 50 to 150 euros monthly to a standard 1-bedroom.
Which neighborhoods are most popular with expats in Germany right now?
The top three neighborhoods most popular with expats in Germany are Berlin's Prenzlauer Berg, Munich's Schwabing, and Frankfurt's Sachsenhausen, known for international communities and English-friendly services.
Expats in these neighborhoods typically pay between 700 and 1,300 euros per month for a 1 to 2-bedroom, often opting for furnished units.
What attracts expats is the presence of international schools, multilingual healthcare, diverse dining, and established expat networks.
The nationalities most represented include Americans, British, French, and increasingly Indian and Chinese professionals in tech, finance, and consulting.
And if you are also an expat, you may want to read our exhaustive guide for expats in Germany.
Get fresh and reliable information about the market in Germany
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Who rents, and what do tenants want in Germany right now?
What tenant profiles dominate rentals in Germany?
The top three tenant profiles dominating the rental market in Germany are singles and couples (around 45%), students and early-career workers (about 25%), and families renting long-term (roughly 20%).
These percentages reflect Germany's high urbanization rate and cultural acceptance of long-term renting.
Singles and couples typically seek 1 to 2-bedroom apartments of 40 to 65 square meters, students look for studios or shared flats under 30 square meters, and families search for 3-bedroom units of 80 to 110 square meters.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Germany.
Do tenants prefer furnished or unfurnished in Germany?
In Germany, approximately 80 to 85% of tenants prefer unfurnished rentals, while 15 to 20% opt for furnished, reflecting the tradition of long-term tenancies.
The typical rent premium for furnished apartments is about 20 to 40%, adding 150 to 300 euros monthly for a 1-bedroom in major cities.
Tenant profiles that prefer furnished rentals include expats on temporary assignments, students from abroad, and corporate relocations valuing flexibility.
Which amenities increase rent the most in Germany?
The top five amenities that increase rent the most in Germany are energy-efficient heating systems, balconies or terraces, modern fitted kitchens, elevators, and proximity to U-Bahn or S-Bahn stations.
Typical rent premiums: energy-efficient heating adds 5 to 10% (about 30 to 70 euros monthly), a balcony adds 5 to 8%, a modern kitchen adds 3 to 6%, an elevator adds 3 to 5%, and transit proximity adds 10 to 15%.
In our property pack covering the real estate market in Germany, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Germany?
The top five renovations with the best ROI for rental properties in Germany are heating system upgrades, bathroom modernizations, window replacements, floor refinishing, and improved lighting.
Typical costs and rent increases: heating upgrades cost 3,000 to 8,000 euros and add 30 to 60 euros monthly; bathroom refreshes cost 2,000 to 5,000 euros and add 20 to 50 euros; windows cost 3,000 to 6,000 euros and add 20 to 40 euros; floors cost 1,500 to 4,000 euros and add 15 to 35 euros; lighting costs 500 to 1,500 euros and adds 10 to 20 euros.
Renovations with poor ROI to avoid include luxury kitchen overhauls in mid-market apartments, pools or saunas, and high-end smart home systems.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Germany versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Germany as of 2026?
What's the vacancy rate for rentals in Germany as of 2026?
As of early 2026, the market-active vacancy rate for rentals in Germany is around 2.0 to 2.3%, meaning only about 1 in 45 rentable apartments is available.
Vacancy rates range from under 1% in tight urban markets like Munich and Frankfurt to 5 to 8% in shrinking eastern towns with population decline.
The current vacancy rate is well below the historical average of 3 to 4% from the early 2010s, reflecting a decade of undersupply.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Germany.
How many days do rentals stay listed in Germany as of 2026?
As of early 2026, the average number of days rentals stay listed in Germany is around 24 days, based on data from major urban markets tracked by GREIX.
Days on market range from 10 to 15 days for well-priced 1-bedrooms in Berlin or Munich to 40 to 60 days for larger or overpriced units in less popular areas.
The current figure of around 24 days is shorter than one year ago when listings averaged closer to 28 days, showing continued tightening.
Which months have peak tenant demand in Germany?
The peak months for tenant demand in Germany are typically March through April and August through October, coinciding with spring relocations, job changes, and university semester starts.
Specific factors driving seasonal demand include the academic calendar (semesters start in October and April), corporate hiring cycles, and the preference for moving during milder weather.
The months with the lowest tenant demand in Germany are December through February, when holidays, cold weather, and lease timing reduce active searchers.
Buying real estate in Germany can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Germany as of 2026?
What property taxes should landlords expect in Germany as of 2026?
As of early 2026, landlords in Germany should expect annual property tax (Grundsteuer) of roughly 300 to 800 euros for a typical apartment, under the reformed system that took effect January 1, 2025.
The realistic range is about 150 euros for a small apartment in a low-value area to over 1,500 euros for larger properties in expensive cities like Munich or Frankfurt.
Property taxes in Germany are calculated based on the assessed property value (Grundsteuerwert), a municipal multiplier (Hebesatz) varying by city, and property type.
Please note that, in our property pack covering the real estate market in Germany, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Germany right now?
A realistic annual maintenance budget for a typical rental property in Germany is around 600 to 1,500 euros for a 50 to 75-square-meter apartment.
The realistic range is about 400 euros for newer buildings in good condition to over 2,500 euros for older Altbau properties requiring frequent repairs.
Landlords in Germany typically set aside 8 to 12% of annual rental income for maintenance, translating to 12 to 20 euros per square meter per year.
What utilities do landlords often pay in Germany right now?
The utilities landlords most commonly pay on behalf of tenants in Germany include water and sewage, waste collection, building cleaning, shared electricity for common areas, property tax, and building insurance, all bundled into the Nebenkosten.
The typical monthly cost totals about 2.67 euros per square meter: roughly 80 euros for a 30-square-meter studio, 135 euros for a 50-square-meter 1-bedroom, and 200 euros for a 75-square-meter 2-bedroom.
The common practice is for landlords to collect a monthly advance (Nebenkostenvorauszahlung) with annual reconciliation, while tenants pay their own electricity and internet directly.
How is rental income taxed in Germany as of 2026?
As of early 2026, rental income in Germany is taxed under the progressive personal income tax system, with rates from 14% to 45% depending on total taxable income.
The main deductions landlords can claim include mortgage interest, depreciation (typically 2% per year for residential buildings), maintenance costs, property management fees, insurance, and property tax.
A common tax mistake specific to landlords in Germany is failing to document and separate private versus rental use when a property is partially owner-occupied, which can trigger audits.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Germany.
We made this infographic to show you how property prices in Germany compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Germany, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Federal Statistical Office (Destatis) | Germany's official statistics office, the baseline for national averages. | We used it as the anchor for Germany-wide housing statistics and to cross-check private datasets. |
| Destatis Zensus 2022 vacancy release | Reports vacancy using a nationwide census, not a sample. | We used it to quantify total vacancy and contrasted it with market-active vacancy. |
| Deutsche Bundesbank indicators | The central bank with transparent, verifiable data. | We used it to separate existing-contract rents versus new lettings and cross-check portal-based measures. |
| BBSR Fachbeitrag Wohnungsmieten | A federal research institute synthesizing rent evidence. | We used it to show asking rents have risen faster than in-tenancy rents since 2010. |
| ImmoScout24 WohnBarometer Q2 2025 | Germany's largest housing portal with clear methodology. | We used it for Germany-wide asking-rent levels and built our rent estimates from it. |
| Kiel Institute GREIX rent index | Uses hedonic methods to reduce composition bias. | We used it to verify rent growth trends and for listing duration evidence. |
| GREIX press release Q3 2025 | A formal institute channel summarizing the GREIX dataset. | We used it for year-over-year rent change and average listing duration. |
| CBRE-empirica vacancy index (Dec 2025) | A long-running vacancy survey used by German housing researchers. | We used it for the market-active vacancy rate and reconciled it with Zensus data. |
| CBRE-empirica vacancy methodology PDF | Documents the vacancy methodology and data sources. | We used it to explain what market-active vacancy includes and as a robustness check. |
| ECB Data Portal HICP rentals | An official euro-area statistical dataset for inflation measurement. | We used it as a macro cross-check that rents are still rising overall. |
| BMF Grundsteuer FAQ | The federal finance ministry explaining the official tax reform. | We used it to confirm Grundsteuer rules and explain landlord-tenant cost pass-through. |
| Betriebskostenverordnung (BetrKV) | The official publication of German federal law online. | We used it to verify Grundsteuer is an allocable operating cost. |
| Deutscher Mieterbund Betriebskostenspiegel | A nationwide association publishing widely-cited operating-cost benchmarks. | We used it to estimate typical Nebenkosten and convert cold rent into warm-rent budgets. |
| BBSR housing needs forecast 2025 | A federal institute quantifying future housing demand. | We used it to ground the rent growth outlook in supply and demand fundamentals. |
| Reuters rent control reporting | A major international news agency covering policy developments. | We used it for context on rent control debates and policy risks. |
| BMF EStH 2024 rental income guidance | Official tax interpretation from the federal finance ministry. | We used it to explain how rental income is taxed and deductions available. |
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