ImmoScout24 WohnBarometer: Demand for rental apartments rose sharply again in second quarter | News

– Demand for rental housing increased by 48 percent in the second quarter of 2022.

– The average demand rent increased twice as much as in the previous quarter on the national average in the second quarter.

– Rented rental prices for new leases for existing apartments rose to over 12 euros per square meter for the first time in Hamburg and over 11 euros in Berlin.

– In Berlin, Frankfurt am Main and Stuttgart, the requested rents for new apartments exceeded the mark of 15 euros per square meter.

The “ImmoScout24 WohnBarometer” shows the development in rental issues for the second quarter of 2022 in Germany as a whole and in the seven largest cities. The analysis is based on the advertisements for existing and new rental apartments on Germany’s largest online real estate marketplace. The rental price data is supplemented with information on demand in relation to supply and price forecasts for the period up to the end of 2022.

For the second quarter of 2022, the ImmoScout24 WohnBarometer shows that the offer prices of rental apartments throughout Germany have risen significantly more than in previous quarters. Existing apartments were offered on average 2.7 percent more expensive than in the previous quarter. The price development for new flats was 3.6 per cent and thus 1.8 per cent higher than in the previous quarter. The national average for claiming rent for existing apartments was EUR 7.66 per night. m² in the second quarter. New apartments were offered for an average of 10.59 euros per. m².

Trend reversal in properties for sale means that rental demand is again growing more markedly

As a result of the rise in interest rates to around 3 per cent, the demand for real estate for sale fell by 36 per cent compared with the previous year. At the same time, demand for rental properties rose by an average of 48 percent. The higher interest rate level has made it much harder for potential buyers to fulfill their dream of owning their own home. Existing rental apartments in particular have seen a marked increase in demand in the larger cities. In Berlin, providers received an average of 217 contact requests per existing apartment per week – and thus even more than in the previous quarter, when this value was 177. In Cologne, the demand was 78 inquiries per week (Q1: 70). This means that Cologne has the second highest demand in a metropolitan area. Also in Hamburg, the demand for existing rental apartments increased from an average of 49 to 68 inquiries per advertisement in the same period.

“Demand is still well above the available supply. As a result of the rise in interest rates, excess demand has shifted from properties to be purchased in the direction of rent. As a result, those who want to rent now experience even more competition when looking for an apartment. Thomas Schroeter, CEO of ImmoScout24. “We need more supply. Due to supply bottlenecks and huge cost increases in new construction, the federal government will not be able to reach its target of 400,000 new apartments a year this year. But we should stick to that in the future and needs a national effort from everyone involved to offer more people affordable housing. The ‘Alliance for Affordable Housing’ at the federal level is a step in the right direction. ”

Rental prices for existing apartments in Hamburg have risen the most

In the segment of existing rental apartments older than two years, Hamburg registered the highest price dynamics in the second quarter, but remains in fourth place in a comparison of rental prices among the seven largest German cities. In the Hanseatic city, net coal rent increased more significantly in the second quarter of 2022 by 5.0 percent than in the previous quarter (1.3 percent). On average, the rent level in the Hanseatic city was EUR 12.22 per person. m² in the second quarter of 2022, which for the first time exceeded the threshold of EUR 12. A rented apartment of 70 m² costs an average of 855.40 euros in Hamburg. In Berlin, the rental price for existing apartments has risen the least compared to other major cities. With a 1.4 percent increase, rents in the federal capital rose only slightly but cracked the 11-euro mark. Nevertheless, Berlin remains the second cheapest metropolis in Germany. Only Düsseldorf with 10.81 euros is below that, Cologne follows Düsseldorf and Berlin in third place with an average of 11.58 euros per. m². Munich is still the most expensive with an average price per square meter of 16.93 euros. With a minus of 0.7 percent for existing rental apartments to 12.26 euros per. m², Stuttgart was the only metropolis to record a slight fall in prices compared to the first quarter.

Largest increase in offer prices for new apartments in Berlin

In the second quarter of 2022, Berlin recorded the largest price increase of 4.5 percent for new apartments for rent in a metropolitan comparison. These were offered for new leases at ImmoScout24 for an average of EUR 15.37 per month. m² and thus exceeded the threshold of 15 EUR per. m². In the federal capital, the average rent without taxes for a new apartment of 70 m is 1,075.90 euros. Berlin is now above the level of Düsseldorf, Hamburg, Frankfurt am Main and Stuttgart. But Frankfurt am Main and Stuttgart also broke the EUR 15 mark for the first time in the second quarter. In the financial metropolis, the rent level rose by 2.6 per cent to EUR 15.17 from the first to the second quarter. Stuttgart is slightly higher with 15.24 EUR per. m². In Munich, rents for new apartments rose by 3.1 percent. With rent of 19.64 EUR per. square meters, Munich remains the most expensive city in Germany. In Cologne, the offer prices for newly built rental apartments rose only moderately by 1.7 percent to EUR 12.88 per person. m². This means that Cologne is almost on a par with Düsseldorf as the cheapest metropolis for new apartments for rent.

Forecast

ImmoScout24 expects price growth of 6 percent for existing and 8 percent for newly built rental apartments for Germany as a whole before the end of the year. In a metropolitan comparison, ImmoScout24 expects the highest increases in demand rents in Hamburg of eight percent for new apartments and nine percent for existing apartments due to the persistently high demand. The lowest price increase in demand rents is expected for existing apartments in Düsseldorf and for new apartments in Cologne, each of three percent.

Method – ImmoScout24 Housing Barometer

The ImmoScout24 WohnBarometer is the market report on developments in the real estate market. Publisher is ImmoScout24: Germany’s leading online real estate platform. The ImmoScout24 WohnBarometer reflects price developments in real supply prices, supplemented by an indicator of the relationship between supply and demand and a price forecast up to the end of the year. The database contains over 8.5 million ads from the last five years on ImmoScout24. All ads for rental apartments are analyzed. The values ​​are determined for reference objects for the property type in question using an algorithm from the machine learning area. The reference property for rental apartments is a 2-room apartment of 70 m². The new construction category contains all offers with a maximum construction age of two years at the respective determination date. The demand in relation to the supply is calculated on the basis of contact requests per listing of the respective property type per. week. This is a standardized value to compensate for different display times on the portal. The algorithm used also forms the basis for the price forecast. Current population balances as well as the available and planned housing stock are included in the calculation. The current rental prices always refer to the last data point in the market report and thus represent the offer price in the first quarter of 2022.

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