Increase in Rental Prices: Major Hikes in Cities Across Rhineland-Palatinate and Bavaria in 2024 - Real estate growth projection: highest surge in 2024 in cities across Rhineland-Palatinate and Bavaria
Highest Rent Increases in German Cities in 2024
In 2024, several German cities are experiencing significant rent increases, with Munich in Bavaria and Frankfurt am Main in Hesse leading the pack.
Munich, the capital of Bavaria, is seeing a nearly 10% increase in average rents, with prime rents rising over 7% year-on-year. Frankfurt am Main, in Hesse, is showing about a 30% increase in average rent and over 5% growth in prime rents compared to the previous year.
However, data for rent increases in Rhineland-Palatinate cities is not available for 2024. While cities like Leipzig and Dresden in Saxony offer relatively affordable rents, they are not experiencing the large increases seen in Bavaria and Hesse.
Düsseldorf, though not in the states mentioned, is reflecting broader regional trends, with rent growth at +5.4%. Berlin, while not in the top spots, is also experiencing a rent increase of 5.0%.
The analysis of offered rents for apartments between 40 and 100 square meters in size, advertised on the internet, shows that Zweibrücken in Rhineland-Palatinate has a significantly lower net cold square meter price of 7.63 euros compared to the average of 11.17 euros. On the other hand, Frankfurt am Main has a significantly higher net cold square meter price of 16.19 euros.
The cities of Offenbach am Main in Hesse, Leipzig in Saxony, Frankfurt am Main, Brandenburg an der Havel, Kaiserslautern, Rosenheim, and Schwabach in Rhineland-Palatinate, and Rosenheim in Bavaria are all projected to see rent increases of 11.3% to 12.6% in 2024.
Nationally, offered rents rose by 5.9% last year. This increase means impoverishment of tenants with low incomes and a strain even on the middle class. Caren Lay, a Left politician, criticized that the housing crisis is not limited to major cities, but also affects small towns and rural regions. She called for a nationwide rent cap with local rent limits.
Large independent cities have an average net cold square meter price of 14.91 euros, while sparsely populated rural districts had a cheaper square meter price of 8.48 euros last year.
- In light of the mounting rent increases, there could be a need for community aid to support tenants with low incomes, especially in cities like Munich and Frankfurt am Main that are experiencing double-digit increases.
- Investing in the production of agricultural products may prove beneficial for some regions experiencing rent increases, such as Rhineland-Palatinate, as it could help offset the financial strain on residents and provide a business opportunity in real-estate.
