GREIX Rental Price Index Q2 2025: Price Growth Slows

This is reflected in the latest update of the GREIX Rental Price Index, published by the Kiel Institute for the World Economy. The index analyses asking rents for apartments based on data from the “VALUE Marktdatenbank” across 20 German cities and regions.

Compared to the previous quarter (Q2 2025 vs. Q1 2025), asking rents for apartments rose by 0.7 percent. Adjusted for inflation – that is, measured in current purchasing power – asking rents actually fell slightly by 0.2 percent.

“Compared to 2024 and the beginning of 2025, when rental prices surged strongly, the current price trend is much more moderate,” says Jonas Zdrzalek, real estate market expert at the Kiel Institute.

In a year-on-year comparison (Q2 2025 vs. Q2 2024), nominal rental prices increased by 3.4 percent, and by 1.3 percent when adjusted for inflation. This reflects the strong price dynamics in 2024 and in the first quarter of 2025.

Rising Rents Especially in Big Cities – Munich Twice as Expensive as Leipzig

Across Germany's eight largest cities (Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich and Stuttgart) renting an apartment has become more expensive almost everywhere.

Compared to the previous quarter, the largest increases in rents were seen in Düsseldorf (+1.5 percent) and Hamburg (+1.3 percent). Increases were more moderate in Berlin (+0.7 percent), Leipzig and Munich (both +0.3 percent). Asking rents remained virtually unchanged in Stuttgart (+0.2 percent), Cologne (+0.1 percent) and Frankfurt am Main (-0.2 percent).

Current rental prices in Germany’s eight largest cities vary considerably. Munich has the highest average net rent per square meter (€22.82), followed by Frankfurt (€17.32). The average net rent was roughly on par in Stuttgart (€15.99/m2), Berlin (€15.62/m2), Hamburg (€15.58/m2), and Cologne (€15.10/m2), followed by Düsseldorf (€14.25/m2). Leipzig is notably cheaper than the other cities at (€10.10m2).

Rents outside of the eight largest cities also increased compared to the previous quarter, with one exception.

The university city of Münster saw particularly strong increases (+3.5 percent, €13.87/m2). All of the surveyed East German cities experienced rent increases, albeit at relatively moderate price levels: Erfurt (+1.3%, €9.43/m2), Dresden (+1.1%, €9.89/m2), and Chemnitz (+1.0%, €6.15/m2).

The only decline occurred in Karlsruhe, where asking rents decreased slightly by 0.6 percent (€13.35/m2).

Online for Only Two Days: Berlin apartments are in high demand

Despite the fact that rents are expensive, demand for apartments remains extremely high. This is evident in the average listing duration, which is the amount of time a rental listing remains online. Over the past ten years, this duration has decreased from an average of 34 days in 2015 to an average of 23 days in 2025. Currently, more than one in six apartments is off the market within two days. In Berlin, this percentage has already reached one in four.

"This shows that the demand for housing is very high. This is particularly challenging in major cities, where securing a suitable apartment can be quite difficult", as Zdrzalek notes.

"This also lowers expectations for the price-reducing effects of current housing policies. Even if political measures, such as the accelerated housing construction program (Wohnungsbau-Turbo), could slow prices in this high-demand market, it will still take time to materialize.”

GREIX Rental Price Index:

The GREIX Rental Price Index provides a detailed analysis of rental price trends in 20 cities and regions. Price changes can be viewed in interactive graphs for various time periods and based values (index and price per square meter).
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Methodological note:

The price development of the GREIX Rental Price Index is calculated as an index. This allows statistical methods (hedonic method) to be used to mitigate price distortions that often arise when using average price per square meter. For instance, if a high number of apartments in a prime location or in an extraordinary condition are sold, this can inflate average prices per square meter. However, such fluctuations may not reflect a general increase in real estate values. Using hedonic regression methods, specific property characteristics do not cause upward or downward distortions in the price trend.