Asking Rents Jump 4 Percent in Second Quarter

Asking rents for apartments in Germany surged by 4.0 percent nationwide in the second quarter of 2026, marking a significant increase compared to the previous year. This trend, detailed in a study by the Institute of the German Economy (IW) in Cologne, indicates a tightening rental market across most major cities.

Cologne experienced the steepest rise, with asking rents climbing by 7.9 percent. Hamburg followed closely with a 5.5 percent increase, while Leipzig and Essen also saw substantial jumps of 5.4 percent and 5.0 percent, respectively. Other cities like Dortmund, Düsseldorf, and Munich also recorded notable rent hikes, though Frankfurt am Main saw a more moderate increase of 2.9 percent. Stuttgart and Berlin showed the slowest growth, with rents rising by only 0.9 percent and 1.0 percent, respectively.

This surge in rental prices significantly outpaced the general inflation rate, which was around 2.6 percent during the same period, even with rising energy prices due to the conflict in Iran. From April to June alone, asking rents increased by 1.3 percent compared to the previous quarter.

The study also noted an increase in purchase prices for residential properties. Condominium prices rose by 0.8 percent year-on-year, while single-family and two-family homes also saw a 0.8 percent increase. Quarter-on-quarter, these prices grew by 0.2 percent and 1.0 percent, respectively. Regional differences are becoming more pronounced, with slight price decreases in top German cities contrasting with moderate gains in surrounding areas and other major cities.