Rental Market Surge Beyond Big Cities in Germany

The demand for rental apartments in Germany has notably increased, extending beyond major cities to smaller urban areas. This trend is resulting in higher rents, particularly for new constructions, while real estate purchase prices have slightly decreased.

The revival of the real estate market is evident, with a surge in inquiries for single-family homes and financing options. Despite stable asking prices for condominiums, existing apartments are around 1.1% cheaper nationwide, with new apartments averaging 2.1% lower.

Analysts caution about potential challenges in the rental property sector due to rising financial distress in certain regions.