Rents in Leipzig and Dresden: New law protects tenants until 2027!

Rents in Leipzig and Dresden: New law protects tenants until 2027!

Rental prices in the major cities of Saxony, especially in Leipzig and Dresden, have risen continuously for years. To counteract this trend, the state government has taken a decisive measure: lowering the cap limit from 20 to 15 percent. This regulation applies to existing tenancies and has been introduced for Leipzig since 2018 and for Dresden since 2014. On June 10, 2025, it was also decided to extend this regulation until June 2027, which offers many tenants in the region a certain level of security.

Minister of State Regina Kraushaar emphasizes that lowering the cap limit offers important protection against rapidly rising rents. The regulation allows apartment rents to rise by a maximum of 15 percent within three years, whereas without this measure an increase to 20 percent would have been imminent. These measures are necessary to alleviate the housing shortage in the affected cities.

New regulations on rent controls

In addition to the cap, the rent cap is in force and applies to new rentals. This regulation limits rent increases to a maximum of 10 percent compared to similar apartments. It has been in effect in Leipzig and Dresden since May 2022, but will expire at the end of this year unless an extension is decided. These two instruments are central building blocks for controlling rent developments in Saxony's tense housing markets.

Another innovative instrument to combat rent usury is the introduction of an online form in Leipzig. This enables citizens to report excessive rental prices. This measure was launched after 800 reports of rent usury since the launch of the rent usurious app. This is not only intended to create transparency, but also to increase awareness of fair rental prices.

Impact on the entire housing market

The measures taken by the federal government to curb rent prices and cap them now affect 610 municipalities in Germany. Rent caps apply in 523 of these communities. According to evaluations by the Federal Institute for Building, Urban and Spatial Research (BBSR), more than 32 million people live in areas where these regulations are implemented. This corresponds to around 38 percent of the population and illustrates the far-reaching effects of these political approaches on the German housing market.

Overall, it can be seen that politicians in Saxony are taking targeted measures to counteract the sharp rise in rental prices and to promote housing construction. These efforts are necessary to ensure an adequate housing situation for all citizens in the long term.

For further information on the rent brake and capping limit in Germany, the BBSR, for example, published a detailed map with the affected areas.

In summary, it should be clear that the current measures in Leipzig and Dresden do not only represent short-term solutions, but also represent an important step towards stable rental prices and appropriate housing conditions in Saxony. [MDR] reports that the planned regulations, beyond an extension, can make a decisive contribution to taking tenants' concerns seriously and promoting a fair housing market.