Berlin Rent Index 2026: What property owners and investors need to bear in mind now

Berlin has had a new qualified rent index since 28 May 2026. It significantly alters the legal and economic scope for rent increases and new tenancies

Background

The Berlin rent index is updated every two years. It reflects the local comparative rent for non-price-controlled flats in multi-occupancy buildings and is thus the central benchmark for rent increases in existing tenancies under Section 558 of the German Civil Code (BGB) and for re-letting, taking into account the rent cap under Sections 556d et seq. BGB.

The 2026 Rent Index is once again a qualified rent index under Section 558d of the German Civil Code (BGB). Within its scope of application, there is a legal presumption that the values shown accurately reflect the local comparative rent. 

The relevant reference date is 1 September 2025. The rent index applies directly only to flats that have become ready for occupation by 31 December 2024. New builds from 1 January 2025, detached and semi-detached houses, terraced houses and publicly subsidised flats are not covered.

Significant changes

Rent levels are rising significantly. The average figure has climbed to €7.71/m² net (excluding heating and water). In the 2024 rent index, it stood at €7.21/m². This represents an increase of around 7 per cent over two years.

The table is structured in much greater detail. The 2026 rent index lists 189 rent values, compared with 163 in 2024 and just 89 in 2023. The building age categories have been further subdivided, and depending on the location and age of the building, there are now up to twelve size categories, in some cases in increments of five square metres. Each field contains at least 30 data records.

Recorded for the first time: new builds from 2020 to 2024. The new building age category shows the highest price level. In good residential areas, the average values for small flats reach up to €22.59/m², with the upper range reaching €27.84/m². In average residential areas, the average values lie between around €15 and €19.92/m².

Older buildings and former social housing stock are driving the rise. For older buildings completed up to 1918, average rents rose in many cases by more than one euro to an average of 8.57 euros/m². The upper range values are consistently in double figures. In the 1965 to 1972 building age category, rents rose by an above-average 8.1 per cent, as flats are included in the statistics at higher rents following the expiry of rent controls.

Energy efficiency is given greater weighting. The guidance for range classification incorporates a graded energy rating. Low energy consumption enhances the quality of living, whilst high consumption reduces it. In addition, individual features have been adjusted, such as rain showers and real glass partitions as high-quality bathroom fittings, and the absence of burglary and privacy protection in ground-floor flats as factors reducing the quality of living.

Residential areas have been comprehensively reclassified. The classification is based on a scientific assessment model using indicators such as standard land value, noise pollution, green space provision and public transport links. The sole authoritative source is the street directory in the Official Gazette of 28 May 2026.

Practical advice

Make use of scope for increases. For property owners, the 2026 rent index opens up measurable scope for increases, particularly in older buildings and older new-build properties, as well as for flats no longer subject to rent controls. Anyone planning rent increases should re-examine their entire portfolio against the table. The finer classification shifts individual flats into different table categories, some of which have higher average values.

Range classification as a value lever. The range classification determines the economically relevant difference. Each of the five characteristic groups can shift the value by up to 20 per cent between the median and range values. The energy efficiency status affects this in both directions. Unrenovated properties with high energy consumption lose their residential value. Energy-efficient renovation can in future be directly monetised in the range classification. A careful, documented assessment of characteristics is therefore a concrete value lever for asset managers and institutional investors.

New lettings. For new lettings, the rent cap remains the bottleneck: a maximum of 10 per cent above the local comparative rent is permitted. The increased rent index raises this upper limit mathematically, but does not replace a case-by-case assessment.

Verify residential area. A change in residential area classification can move an address to a different table. Before any request for a rent increase, the residential area must be checked via the street directory. The deduction for substandard fittings of €0.33/m² is not allocated to the ‘qualified portion’ and is therefore not covered by the presumption of validity.

Senate Department for Urban Development, Construction and Housing, Berlin Rent Index 2026, published in the Official Gazette of 28 May 2026