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In the heart of Bavaria, the city of Augsburg is set to publish a new rent index on December 1, 2025. This index, designed to promote market transparency, will determine the rent for all participants in the housing market. Here's a breakdown of what you need to know about the upcoming index and its implications for tenants and landlords alike.
**The Survey**
The EMA Institute for Empirical Market Analysis has been commissioned to conduct the survey and create the rent index. Tenants in Augsburg are required to participate, and the deadline for submitting the completed questionnaires is mid-August. The survey will ask about the size, year of construction, equipment, location, various living value features, and the rent as of June 2025. All rental objects on the free housing market that have had their rent adjusted in the past six years or have been newly rented are relevant for the survey.
**Rent Caps and Reduced Caps**
In major German cities, including Augsburg, a rent cap or rent brake (Mietpreisbremse) is a legal mechanism that limits the amount landlords can charge for new rental contracts to no more than 10% above the local average rent for comparable properties. While Augsburg is experiencing rising property prices, it is not the most expensive city in the region—Munich holds that distinction.
However, the Fuggerei district in Augsburg offers a unique exception to this rule. Founded in 1521 by Jakob Fugger the Rich, the Fuggerei is a social housing project that provides affordable housing for the city's poor. The rent for Fuggerei residents has remained unchanged at an astonishingly low rate of €0.88 per year (about $1) for over 500 years. This arrangement, often referred to as a reduced cap, is a historical and philanthropic agreement that sets rent at a symbolic price.
**Participation and Consultation**
Participation in the survey is mandatory for tenants in Augsburg. For information on the application and creation of the rent index, you can contact the city of Augsburg's Department for Housing Promotion and Housing, Section for Housing Development, at telephone: 0821 324-9080, email: [email protected].
For questions about the rent cap, the reduced cap in the Fuggerei, or general housing matters, both the Augsburg and Surroundings Home and Property Owners' Association e.V. and the Augsburg and Surroundings Tenants' Association e.V. offer information and consultation.
**Legal Obligations**
There is a legal obligation to provide information for the survey, and failure to comply may result in a fine of up to 5,000 euros. The city administration provides general information about the rent index and rent increases, but individual consultations and the drafting of letters or rent increase requests may not be provided according to the law on out-of-court legal services.
In conclusion, the upcoming rent index in Augsburg aims to promote transparency and protect tenants from sharp rent increases. While the city is experiencing rising property prices, the Fuggerei remains an exceptional example of historical and philanthropic commitment to social housing, with rents remaining symbolically low for over five centuries.
The EMA Institute for Empirical Market Analysis, commissioned to create the new rent index in Augsburg, will consider factors such as size, year of construction, equipment, location, living value features, and rent from June 2025 in their survey. This index could have implications for both tenants and landlords, as it may impact investing in real-estate and the financial aspect of business in the housing market.
For businesses involved in finance, investing, or real-estate in Augsburg, it's essential to understand the implications of the upcoming rent index and how it might affect property values and rental rates. Tenants and landlords are encouraged to consult with various associations for information and consultation regarding the new rent index, rent cap, reduced cap in the Fuggerei, and general housing matters.
