1. New residential rental agreements subject to the legal guideline:
Despite high inflation in recent years, legislators had not adjusted the guidelines in 2024 and 2025.
The adjustment of the guidelines is now only 1% (!).
The guidelines per square meter from April 1, 2026 are as follows:
2. Provided that the valorization according to the Consumer Price Index (CPI) has been agreed for existing benchmark rental agreements, the change may not exceed 1% in 2026 and not more than 2% in 2027.
From 2028, inflation adjustment is limited as follows — example:
Increases of more than 3% p.a. may only half be taken into account.
This means that if inflation is 5% p.a., only the first 3% of the inflation rate and only half of the remaining 2% may be taken into account.
As a result, the rent in this example is likely to be increased by only 4%.
We would be happy to advise you on your rental agreement.
Johannes Reich-Rohrwig
