Munich leads: Rent prices in Germany's cities are rising so dramatically!

Munich leads: Rent prices in Germany's cities are rising so dramatically!

Rent prices in Munich are exploding and the city is becoming the most expensive in Germany - this is a topic that interests not only tenants in the state capital, but also many Germans. The rental price here is currently 22.63 euros per square meter, which is a considerable advantage compared to other large cities in Germany. A recent study by Focus shows that Frankfurt am Main with 19.75 euros comes in second place, followed by Berlin, where rents are 17.98 euros per square meter.

Even if a look at the state capital reveals a lot about rental prices, it is also important to keep an eye on developments in recent years. In Berlin, for example, rents have risen by an incredible 74.3 percent in the last ten years. In Frankfurt am Main the increase is 42.7 percent. These figures make it clear that rental prices are constantly rising not only in Munich, but also in other top cities in Germany - a trend that can be observed in many urban regions.

Rental prices in the most important German cities

The data also corresponds to the findings of Statista, which examined the asking rents of new buildings over the last ten years. This shows that Munich once again occupies the top position, while prices in the Bavarian capital even reach an average of around 19.79 euros per square meter for all types of apartments. In many other cities, such as Kaiserslautern, there was an increase of 10.5 percent compared to 2022 and 2023.

A central factor that drives rental price developments is the relationship between supply and demand. Engel & Völkers emphasizes that the demand for apartments often exceeds the supply, especially in metropolitan areas. This means that rents continue to rise. Migration from home and abroad increases this pressure, especially in economically attractive regions with good infrastructure.

Purchasing power and cost of living

But what about the purchasing power of residents? The districts of Starnberg and Miesbach in Upper Bavaria have the highest purchasing power in Germany with 35,392 euros and 35,335 euros per capita. Munich itself only reaches 33rd place in this ranking, while Frankfurt comes in at 389th place. This means that despite high rental prices, purchasing power in these regions is comparatively low - a circumstance that puts an additional burden on the cost of living in the city.

It remains to be seen how rental prices in Munich and the rest of Germany will develop. However, with limited housing availability and increasing demand, there is no end to the increase in sight. Politics and society are called upon to find solutions to stabilize the housing market and create affordable housing.