Germany’s proposed rental law reform threatens to cut landlords’ income by hundreds of euros, shaking the residential real estate market
Executive summary: Germany’s Justice Minister Hubig presented a draft rental law reform that would impose stricter limits on rent hikes and evictions for landlords. The change could lower landlord revenues by several hundred euros per month and influence housing supply, prices, and investment decisions.
Who is involved: Federal Justice Minister Hubig, German landlord associations, tenant advocacy groups, and residential real estate investors.
Likely next: The draft will be reviewed by the Bundestag, with a possible vote in Q4 2026; landlord groups may file legal challenges or lobby for amendments.
The draft reform unveiled by Justice Minister Hubig aims to strengthen tenant protections by limiting rent increases and tightening eviction procedures. Landlord groups warn that the measures could reduce net rental yields and discourage new housing supply. If enacted, the policy would shift the balance of power in the rental market toward tenants and could affect property valuations and investment returns. The reform is still under discussion, with legislative votes expected later this year.
Timeline
- — Immobilien: Mietrecht-Reform trifft Vermieter hart – Hunderte Euro weniger (Handelsblatt)
- — Trendviertel: „Es gibt teuer und sehr teuer“: Immobilienpreise in München steigen weiter – noch unter der Schmerzgrenze (Handelsblatt)
- — Trendviertel: Nördlich der Elbe locken in Hamburg gute Konditionen (Handelsblatt)
Analysis — what this means
Sectors affected
- German residential real estate
Regulatory implications
- Draft legislation includes caps on annual rent increases and stricter eviction protections for tenants.
Sources
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