Berlin is facing a serious property crisis as a result of a severe housing shortage. According to the latest data, between 100,000 and 150,000 new housing units are needed in the German capital. High demand has led to rents rising by 40% in the last 7 years, according to data from real estate agencies.
Among the main reasons for the strong demand is the increased influx of people in Berlin who want to settle in the city. Another stumbling block for tenants is the fact that mainly short-term rental contracts with a term of between 6 months and 1 year are being concluded. It is very difficult for this contract to then turn into a permanent rental contract.
In Germany, 53% of the population lives in rental housing, which makes the country the leader in the EU in terms of the share of tenants. It is this factor that is at the heart of the highly competitive real estate market. In recent years, footage has also appeared on the Internet showing dozens of people waiting in line to view a rental apartment. Today, this situation is already completely common.
Over the last 7 years, rents in Berlin have increased by over 40%, with the growth in 2024 alone being around 12%. This places the city among the places with the highest rents in Germany.
Against this acute housing shortage, landlords often do not invest seriously in the interior of the properties. In many cases, the homes are rented out as unfurnished apartments, and sometimes even without a fitted kitchen.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg