German rental law reform announced by Justice Minister Hubig will cut landlords’ income by hundreds of euros per unit
Executive summary: Justice Minister Hubig unveiled a proposed overhaul of Germany’s tenancy law that imposes tighter limits on rent hikes and strengthens tenant protections. The reform could lower landlords’ monthly earnings by several hundred euros per apartment, influencing profitability of residential real estate investments.
Who is involved: Federal Minister of Justice Hubig, German landlords and property investors, Tenants' advocacy groups
Likely next: The draft legislation will be reviewed by the Bundestag and, if passed, is expected to take effect after the standard legislative period.
The reform, presented on 23 July 2026, introduces new restrictions on rent increases and eviction procedures for residential landlords. While intended to improve housing affordability for tenants, the measures directly reduce potential rental yields for property owners. Market participants are assessing how the changes will affect investment decisions and rental supply in the coming months.
Timeline
- — Immobilien: Mietrecht-Reform trifft Vermieter hart – Hunderte Euro weniger (Handelsblatt)
Analysis — what this means
Sectors affected
- Residential rental market
- Real estate investment
Regulatory implications
- Proposed amendments to the German Civil Code (Bürgerliches Gesetzbuch) governing rent caps and eviction notices