Berlin Leads the Ranking for Utility Costs

Utility bills in Berlin were the highest among 69 cities worldwide: monthly charges for an 85 sq m apartment reached $410, according to Deutsche Bank's 2026 study.

The Most Expensive Cities

Tel Aviv, Oslo and London followed Berlin. Two more German cities made the top ten: Munich ranked sixth and Frankfurt seventh. Their positions and monthly costs are shown in the table.

The comparison covers electricity, heating, cooling, water supply and waste collection. Deutsche Bank relied mainly on user-submitted estimates from Numbeo. The ranking indicates the approximate cost of a standard set of services; actual bills may differ in what they include and how charges are calculated.

Utilities for an 85 sq m apartment in 2026, $ per month

Rising Utility Costs in Berlin

In 2012, monthly utility costs in the German capital were estimated at $141. By 2026, the figure had nearly tripled. However, the dollar-based comparison also reflects exchange rate movements. Local statistics provide a clearer picture of changes in actual utility bills.

Housing maintenance costs in Berlin rose by 41.4% over ten years, according to the Association of Berlin-Brandenburg Housing Companies (BBU). For an 85 sq m apartment in a building without an elevator, costs increased from €201 in 2014 to €285 in 2024. Heating and other 'warm' operating costs rose by 57.5%, while 'cold' costs grew by 32%.

Utility costs in Berlin are detailed in a Senate report based on bills for 2024. Building upkeep, cleaning, water supply and other services excluding heating averaged €1.93 per sq m per month. Heating and hot water accounted for another €1.50 per sq m. These are averages for the buildings surveyed, not uniform rates for all apartments.

Housing operating costs in Germany averaged €2.67 per sq m per month in 2024, over 6% higher than the previous year, according to the German Tenants' Association. The nationwide statistics cover a different sample of properties and cannot be directly compared with the Berlin figures.

Why Utility Bills Remain High

The energy price surge following the 2022 crisis was a major driver of higher bills. Rising gas prices had a particularly strong effect on heating. Other expenses come from municipal tariffs, upkeep of shared areas and maintenance of building systems. The total also depends on the property's condition, type of heating and energy efficiency.

Gas and electricity prices in Germany fell by 5.3% and 6.4%, respectively, in the first half of 2026 compared with the second half of 2025. Yet they remained 80.7% and 16.4% higher than in the first half of 2021, according to the Federal Statistical Office. The recent decline has not offset the earlier surge.

Even if energy prices stabilize, utility bills may remain high. Heating accounts for only part of the charges; the rest depend on municipal rates, contracts with service providers and the building's technical condition. Two apartments of the same size therefore need not have the same running costs.

Berlin Proposes Utility Charge Caps

In August 2026, the real estate agents' association Ring Deutscher Makler proposed caps on utility charges in Berlin for certain services whose rates are influenced by city authorities. These include water supply, sewage, waste collection, street cleaning and heating. Supporters argue that housing affordability depends on the total amount paid, including rent.

Rules for allocating operating costs in Germany between landlords and tenants are set out in the Betriebskostenverordnung. Charges passed on to tenants may include certain utilities, building insurance and upkeep of shared areas. The owner pays for repairs and property management. There is no general cap on all such charges, and the agents' proposal has not become law.

Checking utility bills in Berlin can help tenants identify mistakes in the allocation of costs, advance payments and heating charges, according to the local tenants' association. Tenants can dispute incorrect calculations, although this does not protect them from tariff increases.

Implications for the Property Market

High utility bills are accompanied by tighter oversight of rental rates. In Germany, rent restrictions on re-letting homes have been extended until the end of 2029. In Berlin, a new rent generally must not exceed the local reference rent by more than 10%, although exemptions apply to some newly built and other properties.

Since July 2026, enforcement of rental rate limits in Berlin has intensified: authorities have begun automatically screening listings and accepting online complaints about excessive rents. In June, potential violations were flagged in 46% of the 4,539 listings reviewed. These were preliminary findings, not confirmed infringements.

An unlawfully high rent can result in a claim for repayment of excess rent amounting to thousands of euros. On May 5, 2026, the Berlin Regional Court upheld tenants' right to recover €11,929.68. These repayments reduce landlords' actual rental income.

According to International Investment analysts, the combination of high operating costs and limits on rental rates reduces the potential returns on investment property. Landlords cannot always offset rising expenses by increasing rent, while repayment claims create additional financial risk. In this market, energy-efficient buildings with predictable running costs have an advantage.