Germany sees teetering rent trends
Germans have experienced a yearly increase in rate rents since 2012, but a report said that the trend may finally be reaching a plateau.
Estate agency portal Immobilienscout24 said main cities and cities with shrinking populations have seen a fall in rent rates, particularly from July to September.
Immobilienscout24 head analyst Michael Kiefer said ‘Munich, Hamburg, Cologne and Frankfurt am Main rents fell by up to 1.8%.’ However, he pointed out that a reverse trend can be seen in Berlin, where rents have increased by 1.42% in the same period.
Last year, rent rates jumped by 6.25% in Munich, 5.29% in Hamburg and 4.17% in Stuttgard. Meanwhile, Berlin rents skyrocketed to 7.62%, bringing overall average rent in the city up by 35.6% since Immobilienscout24 started its IMX housing index study in 2007.
Many families have moved to the outskirts of cities to look for cheaper properties. However, some have argued that no political intervention is necessary to keep the rates steady, as the housing market can regulate itself even if left alone.