The ImmoScout24 WohnBarometer for the third quarter of 2026 documents a continuing shift in rental demand across Germany. The study confirms that metropolises and independent cities are experiencing a significant increase in enquiries for rental apartments. Concurrently, a decrease in interest in rental properties in the surrounding areas and rural regions has been observed. This development underscores the attractiveness of urban centres as residential locations.
The regional shift in demand is evident in concrete figures: In independent cities, the number of enquiries increased by seven percent compared to the previous quarter, while in the eight largest metropolises, the growth was six percent. In contrast, demand in the metropolitan hinterlands decreased by three percent and in rural areas by four percent. Tenants primarily seek locations with adequate job opportunities, educational institutions, and infrastructure. An additional factor is that some of the current rental seekers had previously considered purchasing owner-occupied housing.
Stable Rental Prices Despite Increased Demand
Despite the increased demand, asking rents remained largely stable in the third quarter. New lettings of existing apartments recorded a national average price per square metre of 9.01 EUR, representing a moderate increase of 0.5 percent compared to the previous quarter. Newly built apartments were let for the first time at 13.42 EUR per square metre, an increase of 1.1 percent. Year-on-year, the increases are more pronounced: existing rents rose by 2.5 percent and new-build rents by 2.9 percent.
Within the metropolises, the existing apartment segment shows a calm picture. In six out of eight cities, rents moved between minus 0.3 and plus 0.5 percent quarter-on-quarter. Stuttgart, with minus 0.3 percent, and Düsseldorf, with minus 0.2 percent, registered slight decreases. More significant increases were seen in Hamburg, with plus 1.0 percent, and Leipzig, with plus 1.2 percent. Price differences between the metropolises are significant; a reference apartment of 70 square metres in Munich costs approximately 1,414 EUR net cold for an existing property, while in Leipzig, the most affordable metropolis, it costs about 636 EUR. A comparable new-build apartment in Munich, at 27.57 EUR per square metre, reaches around 1,930 EUR net cold, placing it in the top price segment of all metropolises.
The development of new-build rents in the metropolises varies. Berlin recorded a decrease of 0.8 percent, followed by Leipzig with minus 0.2 percent and Düsseldorf with minus 0.1 percent. Moderate increases occurred in Frankfurt am Main with plus 0.1 percent, Munich with plus 0.6 percent, and Stuttgart with plus 0.7 percent. Cologne with plus 1.7 percent and Hamburg with plus 1.4 percent showed the strongest increases. On average, new-build rents in the eight metropolises rose by 0.5 percent.
Challenges and Solutions
The current price stability should not be misinterpreted as a sign of relief. In 2025, only 206,600 apartments were completed in Germany. This represents an 18 percent decrease compared to the previous year and marks the lowest level since 2012. Although building permits increased by 15.1 percent in the first half of 2026, it takes several years until new apartments are ready for occupation. The shift in demand towards cities meets a housing supply that is barely growing there, which could create future pressure on rental markets.
To alleviate the rental market, in addition to increased new construction, the promotion of homeownership is identified as a relevant factor. Every household that acquires owner-occupied housing for personal use contributes to freeing up rental apartments. Calculations by ImmoScout24 show that in 304 out of 418 districts and independent cities, the monthly burden of buying is lower or comparable to renting after five years, even with mortgage interest rates around four percent. In 146 districts, buying proves more advantageous. The hurdles to property ownership are often not in the monthly repayment but in the necessary equity and ancillary costs. Targeted support in these areas could enable more people to step into homeownership and relieve the rental market. Dr. Gesa Crockford, Managing Director of ImmoScout24, emphasises the necessity of more new construction and facilitating homeownership to secure stable rents and ease the rental market.
