Today the situation is quite different. The demand for rental apartments has outnumbered the supply in the central cities. This is causing price increases and low levels of housing available. Rental levels in Germany stood at € 11.20 per square meter in 2018, a 50% increase over the 2010 figure. In seven of Germany’s main cities, this figure jumps up to 70% on average. The limited supply of housing is also dictated by the number of empty apartments. According to the figures, in Berlin the number is 0.9% of the total market.

In addition, the increase in rents is associated with a natural increase in population, a dramatic increase in average monthly wages, and an increase in demand due to immigration. In other words, the trend in rental prices is a natural consequence of processes in the local economy and not a real crisis. Not only was the rent affected, but also the buying prices of the apartments. Prices have doubled since 2010 due to demand from investors. Thus, in the broader context, there is no room for panic associated with the “rental price explosion” or “housing crisis” in Germany.