While buying a house or apartment might not be completely out of reach all the same, renting in the interim is also a solution for many. However, the German rental real estate market is not without its own set of challenges. Some of Germany's largest cities are Berlin, Hamburg, Munich, Cologne and Frankfurt. These internationally famous locations attract a regular influx of new arrivals both from within Germany and abroad. The demand for housing usually far outstrips supply, creating fierce competition among prospective tenants, while simultaneously being a boon for landlords and property management companies. In 2022, Munich had the highest average rent price at 18.13 euros per square meter (compared to 11.9 euros per square meter ten years earlier), followed by Frankfurt and Stuttgart.
Currently, not enough new construction is taking place to diffuse the situation in the German real estate market. The number of building permits for residential real estate in Germany has been stagnating in recent years, with 129 recorded in 2021.
