Recent Release | 27 Jul 2023
The furnished rental housing market in Germany
Economic Consulting Team
Oxford Economics
The furnished housing market has long been perceived as an insignificant market segment. Our research shows that in 2022 about 14% of renters in Germany lived in furnished apartments. In addition, the market segment is growing. The share of listings for furnished apartments as a share of all rental apartment listings has risen by 45% between January 2013 and January 2022.
As furnished rental apartments also fall under the so-called German rental brake (“Mietpreisbremse”), the German Federal Ministry of Justice commissioned Oxford Economics to investigate the German furnished rental housing market and the application of the rental break. The regulation was supposed to slow the sharp rises in rents in Germany over the past decades due to tightened housing markets.
We find that:
- the furnished rental market is a relevant market segment in Germany,
- the market for renting out furnished apartments for temporary use has grown in particular,
- landlords did not systematically furnish their apartments to avoid the rental brake,
- proceedings that involve rent regulation of furnished apartments under the application of the rental break are quite rare, and
- exemptions from the rental brake as well as the calculation of the furnishing markup are not defined well enough to be correctly applied by market participants.
We even calculate the average furnishing markup using an econometric matching technique. According to our calculations, the average furnishing markup between 2007 and 2018 in the public listings database ranged between €3.53 per m² and €7.04 per m².
To read the full report in German, please click here.
To read the English executive summary, please fill out the form below.
The experts behind the research
Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Johanna Neuhoff
Associate Director of Economic Consulting, Continental Europe
Jan Sun
Senior Economist, Economic Impact
Read the report
Complete the form below to download the report.
Related Services
Demographics are set to propel niche property types in the UK
As the UK population ages, time-use data suggest that the property sectors with structural tailwinds will be those that provide space for activities related to home entertainment, eating and drinking, socialising, events, leisure, hobbies, and sports/exercise.
Find Out MoreAmid disruption, what can US office learn from retail?
We examined the disruption of generative AI at the US county level. We identified several metros – Atlanta, Denver, New York, San Francisco, and Washington DC – that had at least one county with the highest percent of displaced workers from AI.
Find Out MoreUnited States: Student loan payments are less concerning going forward
Despite last summer's US Supreme Court decision, the Biden administration has forgiven $153bn in student loan debt through piecemeal actions. This, combined with a new, more generous income-driven repayment plan and a yearlong grace period following the end of the pandemic-era pause on student loan payments, has reduced the amounts borrowers in the aggregate are paying back to the Department of Education.
Find Out MoreGlobal Private equity real estate fund maturities spur asset sales
We expect the significant increases in fund maturities, spurred by capital raised over the past decade, to exert upward pressure on the rate of asset disposals as the funds approach the end of their lifecycles.
Find Out More