2026 Rental Market Report

Landlords in major German cities face significant differences. These differences exist not only between cities but also within their own portfolios. This is shown in the new “2026 Landlord Survey,” which the software provider immocloud compiled in collaboration with EBS University of Business and Law, under the academic guidance of Prof. Dr. Sven Henkel. The analysis is based on anonymized data from more than 550,000 managed units. Unlike classified ads, it shows the actual rents being paid in twelve major German cities.

Key Findings of the 2026 Landlord Index

• Rent Gap: In leases that have been in effect for at least 20 years, the base rent of 8.29 euros/m² is roughly half that of new leases (16.20 euros/m²).
• Rent Costs: At 18.21 euros/m², Munich is more than twice as expensive as Duisburg, where rent is 7.29 euros/m².
• Tenant Retention: In Berlin, tenancies have lasted an average of 8.3 years, while in Essen they have lasted only 5.8 years.

Long-term leases are significantly below the rate for new leases

For each year of a lease, the rent is, on average, about 1.7 percent lower than that of a lease signed one year earlier. In Berlin, the difference is 2.5 percent; in Duisburg, only 1.2 percent. The larger this difference, the more it pays for landlords to regularly review what is permitted under rental law in their current lease.

Munich remains the most expensive rental market

Munich is followed by Stuttgart at 15.43 euros/m² and Frankfurt am Main at 14.29 euros/m². Leipzig, Essen, Dortmund, and Dresden share a similar price range, ranging from 8.37 to 8.73 euros/m².

Long-Term Leases in Berlin

In Berlin, nearly one in three leases has been in effect for at least ten years. Essen brings up the rear with an average lease term of 5.8 years. There, not even one in five leases has been in effect for at least ten years.

Small Apartments with the Highest Price per Square Meter

Apartments ranging from 15 to 40 m² cost an average of 17.50 euros per square meter. Starting at around 60 m², the price per square meter hardly gets any cheaper, hovering around 10.50 euros. In Leipzig, the price per square meter in small apartments is almost twice as high as in medium-sized apartments; in Hamburg, it is only about one-third more expensive.

Landlords Use AI, but Make Their Own Decisions

An accompanying survey of 646 landlords shows that 44.6 percent use ChatGPT, Gemini, and similar tools to research rental law, while only 6.5 percent consult their own lawyer. 69 percent want AI to provide suggestions but intend to make the decision themselves. Eighty percent have not yet looked into the planned rental law reform in depth.

Düsseldorf and Berlin Are Becoming Landlord Capitals

Both cities have nearly the same rent levels (11.41 and 11.50 euros/m²) and similarly long tenancies. The difference lies in the age of the leases: Düsseldorf is a market with a narrow rent gap. Rents in new leases here are 62 percent higher than in leases that have been in effect for at least twelve years. The age of the lease therefore plays a smaller role in rental income.

Berlin is a market with a wide rent gap. Rents in new leases here are 105 percent higher than in leases that have been in effect for at least twelve years. The age of the lease therefore has a significantly greater impact on rental income.

The real estate industry is diverse and a key market for the future. It ranges from project development and financing to construction and leasing, all the way to management and new business models. EBS University provides students with in-depth knowledge in this field through its Master’s program in Real Estate (M.Sc.). The program has been offered in Hamburg—a major hub of the real estate industry—since the fall semester of 2025.

immocloud bases its analysis exclusively on current lease agreements for over 550,000 units, rather than on property listings. The report thus provides a precise overview of the rental markets in twelve major German cities.