Police ruled out an arson attack. The two dead people were a 54-year-old woman and a 56-year-old man and several more people were seriously injured from smoke inhalation, they said, but gave no further details, Reuters reported.
The fire broke out in the building in the town of Markgroeningen, north of Stuttgart, in the early hours of Monday. Nine people were inside at the time, including two asylum seekers, police said.
"So far there is no indication of a hate crime," police said in a statement.