Rents for new apartment leases in Germany rose 3.2% year-on-year in the second quarter, outpacing gains in the country's seven largest cities, where rents climbed just 1.5% above the national average. Düsseldorf recorded the steepest metropolitan rent increase at 3.6%, while Berlin saw the mildest rise at 0.6%. The German Trade Union Confederation said rents in the 40 largest cities have surged 51% over the past decade.
Residential property prices gained 1.9% year-on-year and 0.3% quarter-on-quarter, with metropolitan prices up 2.1% annually. Hamburg led metro price growth at 3.8%. Commercial real estate fared worse, with office prices falling 1.2% and retail properties slipping 0.2%.
Germany faces an estimated shortfall of around one million homes. Jens Tolckmitt, managing director of the VDP property association, praised government reforms aimed at accelerating building permits and reducing construction costs.