Real estate market rents are rising rapidly in Germany

Port of Hamburg City in Hamburg rent increased by seven percent

Living in the city is getting more expensive: more than five percent a
year ago, tenants need to fork out on average in cities, reports the
"Frankfurter Allgemeine Sunday newspaper." In Berlin, the costs are
rising very strongly - but there are exceptions.

Berlin - finding accommodation in the city - which is often a game of
chance and more often an ordeal. Frustration is programmed. The
available apartments are too small, too old and above all too
expensive. That at least the latter looks are not deceptive, a study
shows the recent development on the property market.

First time in almost 20 years, rents are rising rapidly in Germany.
In urban districts have tenants pay an average of five percent more
today than a year ago, reports the "Frankfurter Allgemeine Zeitung
Sunday" ("FAS"), referring to the real estate market research
institute Empirica.

In many individual cities, rents increased even more, says the report.
In Berlin today, the housing cost 14 percent more than a year ago, 13
percent in Dusseldorf, Cologne and Bonn twelve percent. Also in
Hamburg and Frankfurt am Main, rents increased by seven percent were
above average.

Was reason for the rent increases that many cities would have won for
years to people who have to live alone more often, said Empirica real
estate expert Reiner Braun the "FAS". It had not been built so many
new homes. This year also had an impact of the economic upswing.
"People have become more confident and are also moving once more.
Therefore, the landlord can impose higher rents," said Braun.

Kiel is cheaper, Munich still a bit expensive

Now, the landlord would have a lot of catching. Since 1993, rents had
barely risen, said the market researcher Andreas Schulten from
Institute Bulwien Gesa. "Relative to incomes living in Germany for 17
years has become cheaper. There is now a catch-up effect."

Even in smaller cities, rents can rise rapidly, the report says. In
two bridges such as the prices have attracted a twelve percent to ten
and in Jena in Rostock by eight percent. On average over the entire
Federal Republic Empirica have identified a rent increase of 3.4
percent. The figures are based on advertised rents for the lease of 60
- to 80-square-foot apartments with luxurious facilities that were
built earlier in 2000.

However, there are still cities, where rents rise only slowly. In
Munich, for example, newly rented apartments were only three percent
higher than a year ago - but the Bavarian capital, in terms of the
rental rate per square meter, traditionally the most expensive city in
Germany. In Kiel, the rents had fallen by four percent.

What is the partially-covered prices could result in major cities, was
recently demonstrated in Hamburg and Berlin. To "hedonistic flat
viewing rallies" calling on activists in the capital, in Hamburg, she
protested several times this year with "fat-rent parties" at
exorbitant prices.