After several turbulent years, the property market has slowly recovered. After a period of uncertainty, we are noticing that more stability has returned - both in terms of purchases and rents. Nevertheless, important legal changes are imminent, which are due to come into force from 2026 and will affect many landlords and property owners alike.
One key point concerns rents:
In the regulated rental sector (e.g. guide value or council flats), rents are currently frozen. This means that they are currently not allowed to rise automatically despite inflation. The aim is to reduce the burden on tenants and at the same time take some pressure off the market.
However, a new "Rental Value Protection Act" is planned from 2026. In future, rents will only be allowed to be adjusted once a year - and no longer in line with inflation. For example, if inflation is 6 %, only half of this amount, i.e. 3 %, may be passed on. In this way, the government wants to prevent housing from becoming unaffordable for many and at the same time offer landlords more planning security.
Another important point is the shortening of the minimum rental period:
Previously, a fixed-term tenancy agreement had to run for at least three years. The plan is to extend this period to five years in future (depending on whether the tenant is a private tenant or an entrepreneur). The idea behind this: less frequent tenant changes, more stable tenancies and more reliability for both sides. At the same time, tenants will still be able to terminate their tenancy after two years with the usual notice period.
A lot is also happening in condominium ownership:
The German Condominium Act (WEG) has already been modernised recently - particularly in terms of energy efficiency and sustainability. Measures such as retrofitting photovoltaic systems, e-charging stations in garages and barrier-free conversions have been made easier. In future, communities of owners should be able to pass such resolutions even more easily - without complicated votes or blockades.
The issue of mandatory refurbishment also remains topical. The following applies to older buildings: anyone who does not invest in energy efficiency and insulation in good time must expect stricter requirements in the medium term. It is advisable to consult experts now to check which measures make sense and are eligible for subsidies.
All in all:
Politicians are trying to bring more fairness, transparency and stability to the property market. Landlords and property owners should therefore review their contracts, index clauses and time limits - ideally this year to avoid any nasty surprises from 2026.
The market remains on the move, but this time in a direction that promises more security for everyone involved.