German real estate: Rising rents and high metropolitan property prices

Real estate trends in Germany show a significant divergence between metropolitan property prices and rental costs. In major cities like Munich, average prices for condominiums have reached over 9,000 euros per square meter, more than triple the national average of approximately 3,000 euros.

Data indicates that purchasing property in surrounding regions can offer substantial savings. On average, costs per square meter in districts adjacent to major cities are 33 percent lower than in the cities themselves. For example, in the Berlin area, the Märkisch-Oderland district offers prices roughly 51 percent lower than the capital.

In the Karlsruhe region, the market is experiencing rising rents while purchase prices for existing properties have stabilized. This trend aligns with broader national data from Empirica Regio for the third quarter of 2026, which shows that rents for existing apartments rose by 10.2 percent, while new construction rents increased by 3.8 percent. The new construction sector continues to face challenges due to high building and financing costs.