Germany’s Federal Government Chooses Not to Regulate Commercial Rents

Germany’s Federal Government Chooses Not to Regulate Commercial Rents

The federal government has no plans to regulate commercial rents, according to a reply from the Ministry of Housing to a question raised by the Green party in the Bundestag. Parliamentary State Secretary Sabine Poschmann (SPD) wrote that there is presently no evident urgent need for new legislation.

In the coalition agreement the ruling parties had outlined a range of measures concerning tenancy law, but agreements on commercial rents were not part of that package, she explained.

Hanna Steinmüller, chairwoman of the Greens’ group on the Bundestag’s building committee, called for stricter regulation. She noted that rents are climbing not only for housing but also for a local bakery, a neighbourhood community café, and a physiotherapy practice. “For many small shops this means that they will have to close permanently” she warned the newspaper.

Steinmüller criticised the government’s inaction and urged the creation of a commercial‑rent index and stronger legal protection through a social commercial‑rent system. While a rent‑cap and other tools are intended to curb steep price increases for residential units, no comparable regulation exists for commercial property.

Commercial‑property rent nationwide rose by roughly ten percent between early 2021 and late 2025.