German rents rise fastest in Cologne and Hamburg, fall in Berlin

Rental rates in Germany's largest cities developed very differently over the past year, with sharp increases in Cologne, Hamburg and Dusseldorf but a decline in Berlin, according to the Greix rental price index published by the Kiel Institute for the World Economy (IfW).

In the second quarter of 2026, asking rents rose by 6% year-on-year in Cologne, 5.1% in Hamburg and 4.1% in Dusseldorf, well above the nationwide average of 3%.

Berlin, by contrast, recorded a decline of 0.8% over the same period, leaving a gap of almost 7 percentage points between rental growth in Cologne and the German capital.

Across the 37 cities and regions examined, asking rents increased by 0.8% from the previous quarter and by 3% from a year earlier.

After adjusting for inflation, however, annual rental growth amounted to just 0.3%, the institute said. On a quarterly basis, inflation-adjusted rents fell for the second consecutive quarter.

Rents rose by 3.7% in Munich, 2.8% in Frankfurt and Leipzig, and 1.3% in Stuttgart.

Munich remained by far Germany's most expensive rental market, with average monthly asking rents excluding utilities of €23.70 ($27) per square metre in the second quarter.

It was followed by Frankfurt at €17.80, Hamburg at €16.50 and Stuttgart at €16.30. Average rents stood at €16 in Cologne, €15.30 in Berlin and €14.90 in Dusseldorf.

Leipzig was the cheapest of the eight major cities surveyed, at €10.50 per square metre. The weighted average across all 37 cities and regions was €14.30.

The institute said high rent levels and rapid growth did not necessarily go hand in hand. Stuttgart, for example, remained one of Germany's most expensive rental markets despite relatively modest recent increases.