Rents in major German cities are at record levels, with Munich at about €23.35 per square meter cold and Frankfurt at €17.36, while nominal rents have risen faster than inflation since 2015.

Compared with the third quarter of 2025, quarterly rents across 37 cities and regions rose by about 1.0 percent.

The share of listings offered as short-term, furnished, or fixed-term contracts hit a nationwide record in 2025, reaching 17 percent, with nearly a quarter in the eight largest cities; Munich is around one-third.

The market is seeing a contraction in supply as older leases are maintained and many units are rented without official listings.

Experts say traditional long-term rental offers are shrinking while terms are increasingly defined by fixed durations and furnishing, making stable housing harder to secure.

New rentals in large cities are placing greater burden on low-income renters and students as rents rise and contract terms tighten.

The trend of tight conditions for low-income earners and students in big cities is expected to continue due to rising rents and more restrictive terms.

Commercial landlords have raised rents in that segment since 2012 by about double, while private landlords saw roughly a 50 percent increase; the rent brake was intended to help tenants but is reportedly being circumvented in part.

There was a 7% year-over-year drop in rental listings in Q4 2025, and listings are about 20% lower than in 2015, suggesting many tenants stay with old contracts and many units are rented without ads.

The downshift in supply persists into late 2025, with Q4 listings down 7% from the previous year and roughly 20% fewer since 2015.

Source and index: Greix index, a data source from dpa/nw and IfW Kiel, tracks listing activity.