Asking rents in the top 8 cities rose by an average of 4.9% in the second half of 2024, which is less than before. The increase was 6.3% in the first half of the year and 8.2% in the previous year. Rental price momentum also slowed in the smaller cities and towns, with an increase of 3.9% in the second half of the year (compared to 8.3% in the first half of the year). The strongest inflation was observed in Leipzig at 9.9%, although Leipzig remains the most affordable major German city with average rents of just over EUR 10/m². Frankfurt (+8.6 %), Düsseldorf (+8.1 %) and Hamburg (+7.1 %) also showed greater dynamism, while Munich, Cologne and Stuttgart were all above 3 %. There were no rent increases in Berlin. Purchase prices for existing and newly built flats fell by an average of 0.8%, following a decline of 7.5% in the previous year.

Source: TD/JLL