Germany

Property for rent in Germany

As for the market of properties for rent in Germany, more than half of the population live in rent in the country and the rental price has increased at a staggering rate in recent years. The reasons for this growth are many, is due to economic growth, the creation of new jobs and interest rates that are currently at historic lows.

To counter this phenomenon of a constant and exponential increase in property for rent requests in Germany, the government has planned an investment of 5 million Euros to build 100 thousand housing in social housing by 2021 and another 2,700 billion to help families with at least one child to buy the first house.

Germany has used various measures to try to curb the increase in rent prices, especially in major cities, but the plan has been a complete failure. The measure ended up intensifying the rental market instead of putting a brake.

The mayor of the city of Berlin, Michael Müller, declared that all the measures decided by the government, including that of building new social housing, will have a long-term effect and that it is necessary to improve some measures already in force, such as legislation for adjust the rents.

The capital Berlin is the first in the world to increase the prices of  properties for rent in Germany. Since 2017 the lease has doubled, but buying costs one third more.

A rent in the district of  Neukölln, one of the poorest and most problematic neighbourhoods in the capital, inhabited mainly by immigrants and with one of the highest crime rates in Germany is higher, on average, than many European capitals.

In this neighbourhood  the old inhabitants, Turkish immigrants, students, artists and unemployed, are driven away by the new entrepreneurs of digital societies, young and wealthy, from wealthy and cosmopolitan students of the Erasmus and Easy jet generation. Buildings that were once crumbling and cheap are being renovated and transformed into prestigious and exclusive lofts, penthouses and so on.

But the old Berliners are starting to rebel against this process. In a city where as many as 80% of the inhabitants live in a property for rent and only 20% in real estate owned, the sudden explosion of household costs is starting a popular uprising.

 In Munich, a program was launched for the construction of new public housing specifically reserved for law enforcement officers, postmen, fire-fighters or social educators.

 About 40% of the properties for rent in Germany are owned by individual private owners and a high percentage is held by associations of condominiums.

The cities with the most expensive properties for rent  in Germany are Munich, Frankfurt, Berlin, Dusseldorf and Hamburg. The cities with the cheapest properties for rent  in Germany are Bremen and Leizig, but also Salzgitter, Pirmasens, Delmenhorst, and Zweibrucken.