Renting in Berlin is undoubtedly one of the most discussed topics in the real estate scene. This is mainly due to a cultural factor. As we have often said, in many countries people do not feel the need to buy a property. But people prefer to opt for rental contracts. This is especially the case in young countries or those that host millions of young people every year who want to start a new life. One such dynamic country is Berlin.
Among the main destinations for young people who want to learn the economic language par excellence. Unique in its kind. Strong and bold. Berlin has so many sides that it would be reductive to list them here. In fact, today we are going to talk about something quite different. About a new measure that is causing discussion and generating unwanted effects in German real estate.
So, if you are eager to learn more, we can start with our mini-column today!
The regulation in question that is generating popular discontent is from 2019. This law regulates rents in the German capital built before 2014. The concept is as follows: to impose a ceiling on rents. The result? A disaster, according to experts.
Since this regulation was passed, rental prices have exploded in Berlin within a few years. Demand has outstripped supply. All this led to a strong general imbalance that is still present today. This means that Berlin is losing its charm and pushing potential tenants towards other German destinations. Less attractive but definitely more affordable and with a wider range of facilities.
According to experts, due to this blockade on flats built before 2014, new constructions have become more unaffordable. An anomalous but nevertheless predictable situation. Given the strong restrictions prior to the above period, it is not surprising that in the following years there has been such an aggressive increase in prices.
Is it a bubble? Experts in the sector are silent on this question. But today, rents in Berlin have changed. In fact, the statistics speak for themselves. Every time a tenant leaves a rented flat to move elsewhere, the house that housed him or her is more likely to be put up for sale. Instead of renting it out again. This will therefore make Berlin an exception in today’s Germany. It will probably become the capital of buying and selling, abandoning forever the idea of renting and the rent attached to it.
We do not know how much this will affect the entire German economic system. But there is one certainty. We at Realigro will continue to inform you every day about changes in the international property market. Just like the rental market in Berlin. So if you are interested in similar topics or design, tips on home management, market news, you are in the right place. The Realigro team is always working to make the property market a click away!
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