Business The Berliners have not benefited from the real estate...

The Berliners have not benefited from the real estate boom

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Rents in Berlin have risen sharply. Many Berliners have problems getting them up. Now the state government wants to take action against this with a rent cover. It could be finalized shortly. Existing rents then sometimes even have to be reduced. What effect do you expect?
It would be important for Berlin to create more living space. That would be the really effective measure to ultimately limit rent increases. But the rental cover doesn’t do that. The new building is currently exempt from the rental cover. But what’s in five years? The uncertainty and the incorrect regulations reduce the incentive to plan further new construction projects for rent. Even if dilapidated living space is completely renovated, it does not count as a new building according to the current draft law. In the past, however, fundamental renovations were treated as new buildings. This means that much less renovation will take place due to the rent cover in Berlin. Because in the future it will hardly be possible to pass the costs on to tenants. Refurbishments will then no longer pay off, apartments will fall into disrepair and Berliners will live in them.

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