German rents rise at fastest pace since early 2025 as minister presses for tenant law

Advertised rents in Germany are rising faster again. The Greix rent index compiled by the Kiel Institute for the World Economy showed a 1.2% increase in the third quarter from the previous quarter, up from 0.8% in the second quarter and the strongest gain since early 2025. Year on year, rents rose 3.7%. Among the eight largest cities, Berlin (up 2.1%) and Düsseldorf (up 2.0%) led the quarterly increase, while Hamburg posted the biggest annual rise at 6.7%. Rents for existing apartments rose comparatively strongly.

Justice Minister Stefanie Hubig, a Social Democrat, stepped up pressure on her conservative coalition partners. "Far too many people are affected by housing poverty," she said, adding that tenant protection had become more politically explosive than it had been in a long time. She told the Kölner Stadt-Anzeiger that she had presented a draft law in the spring. What matters now, she said, is reaching a joint solution.

According to the epd news agency, the draft would cap annual increases in index-linked rents at 3.5% in tight housing markets, limit short-term leases to six months and require landlords to list surcharges for furnished flats separately. According to dpa, conservative lawmakers called for changes favoring landlords at the bill's first reading in July.