March 16, 2026
New-Build vs. Older Flats: Why New Apartments Cost So Much More
Two flats with an identical floor area on the same street can cost completely different amounts, depending on whether it's a new-build or an older, existing flat. The difference is real, and it shows up clearly in current market data.
How big is the price gap, really?
The average new-build rent in Germany currently sits at around €16.67 per square metre. According to the 2022 census, existing-flat rents run often 20 to 40 percent below that. How wide the gap can get in an individual case is shown by Dresden: there, new-build rent averages around 83 percent above existing rents.
New-build rents across German cities
Munich: around €24.50/sqm
Hamburg: around €22.40/sqm
Berlin: around €18.50/sqm
Kassel: around €11.50/sqm
The ranking largely follows each city's general price level, with Munich and Hamburg well ahead of mid-sized cities like Kassel.
Why the two segments have recently moved in opposite directions
Existing rents have risen noticeably in recent years, while new-build rents have stabilised or even softened slightly in many cities. One reason: after years of rising construction costs and interest rates, fewer new projects were completed, while demand for existing housing kept growing, pushing the statutory cap on existing-contract increases closer to its limits.
What this means for your search
If your budget is tight, it's worth looking specifically at older build years. A well-maintained existing flat from the 1960s to 1990s often costs noticeably less than a comparable new-build, even though energy efficiency is usually lower, which can mean higher heating costs in the additional-costs statement. If you value modern fittings, better insulation, and lower heating costs instead, you'll typically pay a noticeable premium on the cold rent for it.
For how this plays out at the national level, see our national average rent explainer, and for a look at how rents have moved historically, our rent trend since 2015 guide.
Frequently Asked Questions
How much more expensive is a new-build flat on average?
Depending on the city, new-build rents run 20 to 40 percent above existing-flat rents, and in individual cases like Dresden, as much as 83 percent above.
How high is the average new-build rent in Germany?
Around €16.67 per square metre, with clear differences between cities such as Munich (around €24.50/sqm) and Kassel (around €11.50/sqm).
Is an older flat worth it despite higher heating costs?
Often, yes: the lower cold rent typically outweighs the higher heating costs, which according to the German Tenants' Association operating-cost index can reach up to €1.82 per square metre for older, poorly insulated buildings.
Why have new-build rents risen less than existing rents recently?
Fewer completed new-build projects, driven by high construction costs and interest rates, met growing demand for existing housing, shifting the price pressure more onto the existing-flat segment.
