Rising Rental Prices in Munich: A Comparative Analysis with Other German Cities

As of February 2025, Munich continues to lead Germany's rental market with the highest average rents. The city's desirability, robust economy, and limited housing supply have driven rental prices to unprecedented levels.

Current Rental Prices in Munich

In the fourth quarter of 2024, Munich's average cold rent reached EUR19.30 per square meter, marking a 1.6% increase from the previous quarter. This figure significantly surpasses the German average of EUR8.68 per square meter.

For a standard 70-square-meter apartment, tenants can expect to pay approximately EUR1,350 per month, excluding utilities. This positions Munich as the most expensive city for renters in Germany.

Comparative Analysis with Other German Cities

While Munich's rental market remains the priciest, other major German cities have also experienced notable increases:

• Frankfurt am Main: Average rent stands at EUR14.97 per square meter, reflecting a 3.1% rise.

• Berlin: Rents have surged by 9.6% over the past year, reaching EUR20.16 per square meter.

• Hamburg: Average rents are approximately EUR13 per square meter, with a 11.5% increase over the past year.

These figures indicate a broader trend of rising rental costs across Germany's urban centers, driven by factors such as increased demand, limited housing supply, and economic growth.

Factors Influencing Rental Prices

Several key factors contribute to the escalating rental prices in Munich and other German cities:

• High Demand and Limited Supply: Urbanization and population growth have intensified demand for housing, while construction has not kept pace, leading to a supply shortage.

• Economic Prosperity: Cities like Munich, Frankfurt, and Berlin boast strong economies, attracting professionals and increasing the willingness to pay higher rents.

• Interest Rates and Investment Trends: Low interest rates have spurred property investments, reducing the availability of rental properties and further driving up prices.

Implications for Renters

The upward trend in rental prices poses challenges for tenants, particularly those with fixed or lower incomes. The Deutsche Mieterbund has called for political measures to curb rent increases and alleviate pressure on renters in major cities.

Munich's rental market remains the most expensive in Germany, with other major cities also experiencing significant rent increases. Addressing the housing affordability issue will require coordinated efforts from policymakers, the real estate sector, and urban planners to ensure sustainable and accessible housing options for all residents.

External Links to Recent Developments in Germany's Rental Market

welt.de

Wohnen in deutschen Großstädten immer teurer - Mieterbund fordert Konsequenzen

reuters.com

Rebound in German home prices around the corner, analysts say: Reuters poll