With the rent cap (Mietendeckel) in place for almost a year now in Germany, its effects are becoming visible. 

The HousingAnywhere International Rent Index report for Q4 2020, revealed that Berlin is showing sharp rental decreases at -14.4% for apartments to €999 a month and -7.5% for single rooms to €538 a month, compared to Q4 2019, the largest drop on the Index. 

Munich is showing decreases in rental prices for apartments and single rooms for the first time in five years. The city has shown to have a strong rental market which has grown steadily these past years. Recently, however, it has been suffering from a lack of international students and expats travelling to the city. 

Average Munich apartment rents decreased by -5.3% to €1,451, studio apartment prices decreased by -0.2% to €1,030/month, and single rooms by -3.2% to €665/month.  

However, despite rents dropping in Q4 2020, Hamburg is showing positive growth in rental prices compared to 2019. Apartment prices have increased by 2%, single rooms by 0.6%, and studios by 2.7% compared to last year.

Frankfurt is also showing strong rental increases across the board, compared to last year, with an increase of 8% for one-bedroom apartments, 3.4% for single rooms, and 3.7% for studios.