Surge in Furnished Rentals Reshapes German City Markets, IfW GREIX Data Shows
IfW GREIX data finds furnished rentals in German cities have more than tripled since 2015 while regular listings fell 22%, prompting policy debate and market scrutiny.
The Kiel Institute for the World Economy’s (IfW) GREIX housing index shows a marked shift in listing types across 37 cities and regions, with regular rental offers declining by 22 percent since 2015. At the same time, listings for furnished, open-ended rentals rose from about 12,000 to 37,000 advertisements, an increase of more than 200 percent. The change has coincided with a modest slowdown in headline asking rents, even as temporary and furnished offers expand.
IfW GREIX shows long-term decline in conventional listings
The GREIX index aggregates offers from more than 100 real estate portals and broker websites, analyzing roughly 60,000 new listings each quarter to track market dynamics. According to the institute, the number of conventional rental offers — meaning unfurnished, standard tenancy listings — has fallen steadily since 2015 across the sampled cities and regions. The data suggest structural adjustments in how landlords present and market urban housing, rather than only short-term seasonal fluctuations.
The methodology behind GREIX is intended to capture supply-side signals available to prospective tenants, including the composition of posting types and advertised conditions. Analysts say that shifts in the composition of listings can presage longer-term changes in availability and renter choice.
Furnished and long-term furnished listings have surged
The most pronounced change recorded by GREIX is the growth of furnished, unbounded rentals, which expanded from roughly 12,000 ads in 2015 to about 37,000 in the present reporting period. This represents a sustained migration of inventory into a segment that historically served niche demand such as expatriates, business travelers, and temporary assignments.
The related category of Wohnen auf Zeit — typically time-limited, often furnished tenancies marketed for fixed periods — also grew, albeit more modestly, increasing by 7.1 percent over the same span. Together, these shifts point to a diversification of listing formats on dominant online platforms, with more landlords opting to offer furnished or time-constrained tenancies.
Regular offers still dominate but the balance is shifting
Despite the expansion of furnished offers, conventional rental listings continue to represent the majority of the market according to GREIX, accounting for about 73 percent of current postings. Yet market observers note that the rising share of alternative formats changes the options visible to people searching on mainstream portals. Jonas Zdrzalek, project lead for GREIX at the IfW, has argued that digital platforms increasingly present conditions that a decade ago would have been exceptional.
The visibility of furnished and temporary offers on mainstream search tools can affect search outcomes and perceived availability, particularly for renters without the time or means to sift between nuanced listing types.
Asking rents slow but remain positive, GREIX data show
Price signals in the GREIX index indicate that advertised rents have moderated compared with recent quarters. In the first quarter, nominal asking rents across Germany rose 0.5 percent from the previous quarter and 2.9 percent year-on-year — the lowest annual nominal growth since the fourth quarter of 2021. By contrast, the fourth quarter of the prior year registered a 4.5 percent rise in advertised rents.
Researchers highlight that these figures refer to advertised or asking rents rather than contracted rents, and nominal growth must be read alongside prevailing inflation measures to gauge real affordability. Still, the deceleration offers a different narrative from the rapid increases seen in earlier phases of the housing cycle.
Federal Justice Minister proposes limits on temporary furnished lets
The expansion of furnished and temporary offers has drawn attention from policymakers and tenant advocates who say some landlords use such formats to sidestep rental caps. Federal Justice Minister Stefanie Hubig (SPD) has proposed regulatory changes aimed at reining in what she and supporters view as circumvention tactics. Her draft measures would cap tenancies designated for temporary use at six months and set a benchmark for the furnishing surcharge: a fully equipped unit would be deemed reasonably charged if the furnishing premium does not exceed five percent of the net cold rent.
The proposed rules aim to clarify when a tenancy may legitimately be marketed as temporary and to limit excessive additional charges for furnished accommodation. Implementation would require legislative approval and could entail new monitoring and enforcement mechanisms.
Stakeholders voice competing views on causes and solutions
Tenant organizations have criticized the growth of furnished and time-limited listings, arguing the format can be used to avoid rent-control rules and reduce long-term housing security for renters. They point to the rising volume of such offers as evidence that regulatory gaps allow landlords to extract higher short-term returns.
Market platforms and some landlords counter that furnished options respond to genuine demand for flexible urban housing, serving students, commuters, and workers on fixed-term contracts. Platform operators also argue that furnished and temporary offerings expand market liquidity and enable landlords to manage occupancy risk.
The policy debate centers on balancing renter protection and market flexibility, with enforcement capacity likely to shape the ultimate impact of any new rules.
Long-term implications for city housing markets will depend on whether the trend toward furnished and fixed-term listings stabilizes or continues to grow, and on how strongly regulators act to limit or formalize those segments. Observers say that close monitoring of listing composition and advertised rents will remain essential for assessing supply-side shifts that affect affordability and access.
The IfW GREIX data have made the composition of online offers more visible, giving policymakers and tenant groups a clearer basis for discussion as German cities confront ongoing housing pressure and look to align market practice with social housing goals.
