Everyone who has tried to find an apartment to rent in a major German city will know the routine: endless scrolling, dozens of applications, viewings with queues down the stairs. And ultimately the realisation that many "available" flats are only being offered furnished or for just a few months at a time.
For many new arrivals, this can mean months, or even years, in shared flats or overpriced serviced apartments, reinforcing the impression that finding an unlimited contract apartment, which used to be the standard in Germany, has become next to impossible in recent years.
Politicians are promising reform, but whether the latest proposals will help – or even make it into law – remains unclear.
Fewer 'standard' rentals, more furnished offers
Figures from the GREIX rental index, published by the Kiel Institute for the World Economy (IfW), confirm that fewer "standard" rentals are coming onto the market, while the number of furnished offers continues to grow.
According to the latest analysis, the number of standard rental listings on major portals in 37 German cities and regions has fallen by 22 percent since 2015.
In some places, the decline is far steeper. In cities such as MĂĽnster and Potsdam, listings for standard rentals have dropped by 50 to 55 percent compared with 2015, according to the IfW researchers.
At the same time, the number of furnished apartments on offer has surged. In Germany’s eight largest cities – including Berlin, Hamburg and Munich – the number of such listings has risen from around 7,500 in 2015 to about 23,000 last year.
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Across the entire GREIX sample, they have more than tripled, increasing from roughly 12,000 to 37,000 listings.
In practice, this means that only 73 percent of listings across the GREIX index, and 63 percent in the eight largest cities, are now regular unfurnished rentals.
GREIX project manager Jonas Zdrzalek described this as a structural change. Anyone searching on major property portals today, he said, was increasingly encountering conditions that were "still the exception ten years ago".
Why landlords like furnished and fixed‑term rentals
Furnishing a flat or offering it on a fixed‑term basis allows landlords to bypass rent controls, enabling higher effective rents – particularly in cities such as Berlin.
A 2022 study by Investitionsbank Berlin (IBB) found that furnished apartments in the German capital cost, on average, around twice as much as unfurnished ones, with even the most basic furniture often used to justify large surcharges.
Many landlords also say that fixed‑term contracts help them avoid long‑term risks and maintain flexibility, for example if they want to use a property personally in the future, according to research by the Ifo Institute.
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What is the government planning?
The political response is being led by Federal Justice Minister Stefanie Hubig of the centre-left Social Democrats (SPD), whose ministry is preparing reforms aimed squarely at furnished and short‑term rentals.
The stated goal is to close legal grey areas that allow higher rents and weaker tenant protection in tight housing markets.
Under the proposals, contracts for so‑called "temporary use" would be limited to a maximum of six months, after which normal tenant‑protection rules would apply.
In addition, the surcharge landlords can add for furniture would be capped at five percent of the net rent, making it harder to justify sharp rent hikes simply by providing basic furnishings. Index‑linked rents tied to inflation would also face tighter limits.
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Is the problem being overstated?
The German Tenants’ Association (DMB) has welcomed the proposals as long overdue and a meaningful step towards better protection for tenants, while calling for even tighter limits on repeated short‑term rentals by the same landlords.
Political scientist Alexander Reisenbichler told Deutsche Welle that the reforms were "a step in the right direction" – but far from sufficient to solve Germany’s housing crisis without large‑scale investment in new and social housing.
Others are more sceptical. For example, an Ifo Institute study on behalf of lettings platform Wunderflats found that the number of furnished apartments on the market appears higher than it actually is because these properties are advertised far more often than long‑term rentals.
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The landlords’ association Haus & Grund has also criticised the plans, warning that they would increase bureaucracy and reduce the availability of flexible housing options.
For now, the proposals remain at the draft stage within the Justice Ministry. Before becoming law, they would need to gain cabinet approval and then survive debates in the Bundestag and Bundesrat – a process with no fixed timetable.
This means that any concrete impact for renters remains months away at best.
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