Inflation in Germany: Now rents will also rise sharply

The rents would have to be adjusted to the "permanently high inflation", Germany's largest housing group Vonovia has announced. The CEO of the Dax company, Rolf Buch, said landlords would otherwise get into serious trouble. In addition to the ancillary costs for electricity, gas and water, which are already at a record high due to the newly introduced climate taxes, millions of German tenants have to be prepared for further rising costs.
"Rents can't ignore inflation"

In view of the high inflation rates, Vonovia considers significant rent increases to be "inevitable", CEO Rolf Buch told the Handelsblatt newspaper: "If inflation is permanently four percent, rents will have to rise accordingly every year in the future." However, inflation is now eight percent.

“We can't pretend that inflation is bypassing rents. It won't work," said Buch. Already in the first quarter of this year, Vonovia increased the average rent to EUR 7.40 per square meter - this corresponds to 3.1 percent more than in the previous year. Vonovia owns around 565,000 apartments, most of them in Germany.

Source: Junge Freiheit