Across Germany, residential rents are rising faster than purchase prices

An analysis by JLL shows that asking rents for new-build and existing apartments in Germany's eight metropolitan regions rose by 6.3% in 2022 compared to the previous year. In the same period, purchase prices rose by just 1.6%, while they even fell by 3.1% in the second half of 2022. This trend is also reflected in the increase in asking rents in the independent cities, which amounted to 4.4 %, while purchase prices rose by 0.6 %. The rural districts, on the other hand, recorded a balanced increase of 6.1% in asking rents and 6.0% in purchase prices. The main reasons for the trend reversal were the high level of immigration to Germany, the resulting increase in demand for rental apartments and the low level of construction activity.