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The pressure on the real estate market is increasing and is causing rents for furnished apartments to rise significantly. Across Germany, the asking rents per square meter for furnished apartments have risen significantly more than those for unfurnished apartments since 2018, as the real estate platform ImmoScout24 announced on Friday. While asking rents for furnished apartments rose by half from EUR 15.50 per square meter to EUR 22.50, they only climbed from EUR 7.41 to EUR 9.32 for unfurnished units. According to ImmoScout24, furnished offers often also include services such as caretaker, cleaning or laundry services.
In the past five years, the proportion of furnished apartments in all offers has increased from eight to 13 percent. "The rapid increase in furnished apartments is partly due to the regulations on the rental market," said ImmoScout24 Managing Director Gesa Crockford. Furnished apartments are basically no exception when it comes to the rent control. However, this does not apply if an apartment is rented temporarily. "Because of this gray area, the asking rents for furnished apartments are significantly higher and therefore unaffordable for many," explained Crockford. "That puts additional pressure on the rental market."
In the five largest cities in Germany, the proportion of furnished apartments has risen particularly sharply and, according to ImmoScout24, is more than a third on average. Berlin recorded the clearest increase and by far the highest proportion of furnished rental apartments. Here the share jumped from 13 percent in the fourth quarter of 2018 to 51 percent at the end of 2022. This means that there are now even more offers of furnished than unfurnished apartments in the capital.
Rising interest rates and construction prices are currently slowing down many construction projects. The federal government has now also admitted that it will miss its goal of building 400,000 new homes per year. The ongoing crisis could lead to redundancies in construction for the first time in over a decade, the ZDB industry association recently warned.
