Berlin’s Rent Prices See Slight Decline, Offering Glimmer of Hope in Housing Crisis
Berlin, April 24 – For the first time in a long while, Berlin’s average rent prices have shown a slight decrease, providing a moment of relief in the city’s ongoing housing crisis. An analysis by the Kiel Institute for the World Economy (IfW) indicates a modest but notable shift in the rental market.
Average Rent Now at €15.84 per Square Meter
According to the GREIX rent index, compiled by the IfW, asking rents in Berlin experienced a 1.8 percent decline in the first quarter of 2026 compared to the fourth quarter of 2025. This brings the average rent to €15.84 per square meter.
This development follows a period of stagnation in 2025, where rent prices remained largely unchanged compared to the previous year. However, experts caution against excessive optimism.
“Stagnant or slightly falling asking rents primarily show that the burden limit in Berlin has been reached after years of sharply rising rents,” stated Wibke Werner, Managing Director of the Berlin Tenants’ Association, in an interview with the Tagesspiegel. “Tenants simply wouldn’t be able to afford even higher rents.”
Understanding the GREIX Index
The GREIX is a comprehensive rent index that tracks the evolution of asking rents for apartments in German cities. It analyzes housing advertisements from multiple real estate platforms, calculating comparable average rents per square meter, adjusted for factors such as location, size, and amenities.
Munich Remains Most Expensive, Berlin in the Upper Mid-Range
Despite the recent dip, Berlin’s rent prices still place it in the upper mid-range among Germany’s eight largest cities. Munich continues to hold the top spot as the most expensive city, with an average cold rent of €23.56 per square meter. Following Munich are Frankfurt a.M. (€17.71/sqm), Hamburg (€16.35/sqm), and Stuttgart (€16.25/sqm). Berlin (€15.84/sqm) and Cologne (€15.67/sqm) occupy the upper mid-range, while Düsseldorf stands at €14.78/sqm. Leipzig marks the lower end with €10.41/sqm.
Availability Remains a Major Challenge
While the slight decrease in average rent prices is a welcome change, it does not necessarily translate to easier access to affordable housing. The fundamental issue of limited housing availability persists.
“What the bare rent figures only partially show: The market is undergoing structural changes. Regular listings have decreased by more than a fifth since 2015, while furnished, unlimited offers have more than tripled in metropolitan areas,” explained Jonas Zdrzalek from the IfW.
“Anyone looking for an apartment in a major city today through the common platforms is increasingly encountering conditions that were an exception ten years ago.”
In 2025, the total number of regular housing listings nationwide was approximately 250,000, a decrease from roughly 260,000 in the previous year. These figures refer to classic, unlimited, and unfurnished rental apartments from online listings, excluding furnished apartments, fixed-term contracts, temporary housing, short-term rentals, and offers outside of standard real estate portals.
Looking at the long-term trend, the decline is even more pronounced. Across the entire GREIX index, the number of regular listings fell to 285,000 in 2015, representing a decrease of around 22 percent. In specific cities like Münster, Berlin, and Potsdam, the reduction compared to 2015 is even more significant, ranging from 50 to 55 percent.
The slight reduction in rent prices offers a glimmer of hope for Berlin residents struggling to find affordable housing. However, the underlying structural issues of limited availability and a shift towards less conventional rental options continue to pose significant challenges in the city’s dynamic housing market.
Source: berliner-kurier.de
