Immoscout evaluation: Berlin asking rents are rising faster than the national average
Rents continue to rise significantly – especially in Berlin. Compared to the previous year, the asking prices for new rentals nationwide have increased by 4.6 percent in existing buildings and by 7.6 percent in new buildings, as the Immoscout platform announced on Thursday.
Accordingly, Berlin continued to record the highest price increases in the segment of existing rental apartments. Here, the net cold rents rose by eight percent compared to the previous year, according to the study. In Cologne, rents for existing properties rose by 5.9 percent in the same period, by 5.2 percent in Frankfurt am Main and by 4.1 percent in Hamburg.
“Even before the inflation rate soared, rents were rising significantly, especially in the big cities,” says Thomas Schroeter, Managing Director of ImmoScout24. The portal expects prices to continue to rise over the next twelve months. Berlin’s asking rents for existing properties are expected to rise by six percent, while experts are forecasting an increase of four percent in Hamburg, Frankfurt am Main, Munich and Cologne. In new construction, they expect eight percent in Berlin and six percent in the other major cities.
Inflation higher than rents
According to figures from the Federal Statistical Office, the rent has recently been clear increased more slowly than the inflation rate. According to the latest figures, the rental increase in May was 1.7 percent, while the inflation rate across all product groups was 7.9 percent. In contrast to the figures from Immoscout, the rents measured here include all rent payments, not just the new asking rents.
The energy prices in particular are currently becoming an increasing burden in the housing cost increases. You can see that at Immoscout as well. “The rapidly increasing energy and ancillary costs will have an even greater impact than the cold rent. With the ongoing development, they will become the second rent,” says Schroeter.
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Immoscout calculates this based on an existing rental apartment with gas heating. The costs for heating and hot water increased by 35.7 percent from February 2021 to February 2022, the platform company reports, citing data from the Federal Statistical Office. The cost of electricity had risen by 13 percent during this period.
Vonovia brings rent increases into play
“In total & tenants: inside a typical apartment with 70 square meters spend around 31 euros per month more for their warm rent including electricity than a year ago,” says Immoscout. By the end of the year, there is a risk of an additional charge for heating, hot water and electricity of around 92 euros per month if energy costs continue to rise. For this size of apartment, this would correspond to around 1100 euros in additional costs per year.
The head of the Vonovia housing group, Rolf Buch, only caused the excitement on Wednesday when he Interview with the “Handelsblatt” indicated that rents would eventually have to follow inflation.
The Vonovia subsidiary Deutsche Wohnen then confirmed its voluntary hardship regulation on Thursday. “Our tenants do not have to worry that they may no longer be able to afford their apartments as a result of any rent adjustments,” said co-CEO Konstantina Kanellopoulos. When rent adjustments are made, the individual income and living conditions of those affected are taken into account. Affordability is a central characteristic of housing.