For many people, living in cities involves high costs. Anyone looking for or letting a flat in 2025 will come across a range of rental figures and will need to assess them carefully. A price per square metre on its own does not necessarily indicate whether a property is good value or expensive: location, condition, fittings and the service charges included also play a part. This overview highlights the factors that help when assessing rents and what tenants and landlords should look out for.
It is not just the basic rent that matters: for a fair comparison, the total monthly cost is what counts.
Distinguishing between the asking rent and the current rent
The ‘advertised rent’ refers to the rent at which a flat is currently being offered for let. It reflects the offers available to those looking for accommodation and may vary depending on the location, condition and fittings. However, it is not possible to derive a reliable general rent figure for a city from individual property advertisements.
By contrast, existing tenancy rents are rents from existing tenancies. They do not necessarily change at the same rate as the prices of new properties on the market. Consequently, there can be significant differences between new-market rents and existing tenancy rents. Anyone wishing to put a figure into context should first clarify what type of rent figure is being quoted and the period and properties to which a source refers.
The local rent index may serve as a guide for this assessment, provided it is suitable for the specific flat and the issue at hand. It is crucial to take comparable features into account: for example, location, size, condition of the building and fittings. A blanket comparison with another flat or a property advert can be misleading. In the case of specific legal questions, an individual legal assessment may be advisable.
Factors affecting housing costs
There is no single reason to explain why living in cities can be expensive. Several factors come into play, and these vary depending on the location and the property:
- Supply and demand: When many people in a city are looking for somewhere to live and there is a limited supply of suitable flats, competition for available properties may increase. This does not automatically affect every flat in the same way.
- Location and accessibility: Proximity to workplaces, shopping facilities or public transport can influence the appeal of a residential area. The extent to which this is reflected in the rent depends on the specific local area.
- Condition and fittings: Layout, maintenance and existing fixtures and fittings are what set flats apart. To make a meaningful comparison, these factors should not be equated with a simple price per square metre.
- Local accommodation options: New builds, people moving house and changes to the existing housing stock can affect supply. The impact varies from region to region and cannot be quantified in general terms without the relevant data.
Calculation example: Basic rent and service charges
The following example is provided solely to illustrate the calculation. It does not represent a real average or market value: assuming a living area of 60 m² and a basic rent of €16 per square metre, this results in a monthly basic rent of 960 €. If, for example, additional service charges of €3.50 per square metre are applied, that amounts to 210 €. Taken together, this gives €1,170 per month.
The specific costs included in an advance payment or flat-rate charge for service charges are set out in the relevant offer and the contract documents. Heating and electricity costs may need to be checked separately, depending on the offer. Before making a comparison, those looking for accommodation should therefore check whether a listing specifies the basic rent, the rent inclusive of utilities, or any other cost components.
Checklist for tenants
These points will help you to assess a property listing in a structured way:
- Is it clearly stated whether the rent quoted is exclusive of utilities or inclusive of utilities?
- Which service charges are included, and what additional costs might be incurred?
- Does it compare favourably with the local rent index in terms of location, condition and facilities?
- Are the living space, layout and specifications described in a clear and comprehensible manner?
- Are there any outstanding issues regarding the tenancy agreement or the rent that require a specific legal assessment?
What property owners should bear in mind
When estimating a potential rent, landlords should not rely solely on eye-catching adverts. It is more informative to carefully assess the specific flat and compare it with other listings or data from the local market. This includes, amongst other things, location, size, condition and fittings. It is also important to distinguish between asking rents and existing tenancies.
The rent that can be set in any particular case depends on the specific circumstances. A rent index can serve as a guide, but does not automatically replace an assessment of the individual situation. In the event of legal uncertainties, a qualified, individual legal assessment is the appropriate course of action. Anyone wishing to have the potential sale value of their property assessed can use the free Property valuation by FLEXMAKLER use. This is intended to estimate the sale value and does not constitute an automatic rent valuation.
Conclusion
Rental prices in cities cannot be explained by a single figure. Asking rents and existing rents describe different situations; location, condition, fittings and the available housing stock can all influence how they are categorised. It is worth tenants examining the cost components transparently and making careful comparisons. Landlords should take a nuanced view of their property and, where legal questions arise, have the specific individual case assessed. In this way, a general price indication becomes a more informed assessment of the particular housing situation.
