Real estate market in 2025
The German real estate market is evolving, and 2025 marks a noticeable shift in rental trends. While furnished rentalshave dominated in recent years, demand in some cities is now slightly declining, giving unfurnished apartmentsrenewed relevance.
So, which option is better for property owners – furnished or unfurnished rental?
Furnished Rentals – Higher Yields, More Effort
Furnished apartments in cities like Berlin, Frankfurt, Hamburg, Vienna, Prague, Leipzig, and Munich can generate 60–80% higher rents than unfurnished ones.
In addition, rental price caps (Mietpreisbremse) often don’t fully apply, since furnished apartments are not included in the local rent index (Mietspiegel). This allows landlords to charge higher, market-based rents, especially for international tenants, business travelers, and expats looking for flexible accommodation below hotel rates.
However, furnished rentals require more management effort:
- Shorter rental periods (monthly or quarterly)
- Regular cleaning, maintenance, and furniture replacements
- Frequent check-ins, listings, and tenant communication
- Higher risk of furniture damage
To avoid disputes, landlords should always use a furniture inventory list and define who is responsible for repairs or replacements.
When Is It Worth Furnishing a Property?
Furnishing your apartment makes sense if you:
- Plan to use the apartment privately from time to time, or
- Want to sell it after around 10 years, taking advantage of short-term higher yields.
If you view your property as a long-term investment for several decades, renting it unfurnished can be the better choice – offering less maintenance, stable tenants, and lower running costs.
Unfurnished Rentals – Stability and Long-Term Security
Unfurnished apartments attract long-term tenants, with rental periods often lasting several years. The management is simpler, and maintenance expenses are predictable.
However, monthly rents are usually lower, and landlords must comply with rental caps and rent comparison rules.
For investors seeking steady income and low administrative effort, the unfurnished model remains a solid option.
Our Conclusion – Get Professional Advice
Whether furnished or unfurnished rental is right for you depends on your personal goals and property strategy:
- Want higher yields and flexibility? → Furnished rental
- Prefer long-term investment and low maintenance? → Unfurnished may be smarter
At WHITE APARTMENTS, we help you evaluate your property and design a tailored rental strategy – including operational management, financial planning, and tenant support.
We handle the effort, while you enjoy the return.
