Thursday, April 15, 2021

Rental Brake Discussion

 Months ago, because of the escalating rental costs in Berlin (the city)....the city leadership (SPD-Greens-Linke Party) determined that they had the 'power' to install a rental cost 'brake'.

This was challenged in court.  This morning....the Constitutional Court stood up and said 'no'.....the control over rental prices of a privately-financed apartment building is not possible.

For around a year, this 'control' has been in place and affecting around 1.5-million apartments in Berlin.

Rents now likely to escalate?  I would imagine that nothing will occur for a couple of months, and then some of these (especially those under renovation)....will slide upwards.

All of this trending toward a top-three political issue?  I would suggest that.  Most everyone who lives in a highly urbanized city of Germany.....will whine over the escalation and how the housing market has crapped-out.  The days when you could find a plain basic apartment (1-bedroom) in Frankfurt for 300 Euro (600 DM)....long gone. 

1 comment:

Claudio said...

Here in Greater Toronto Area the rents are actually going down, due to Covid 19 and work from home, less or almost no (international/local) students, zero turism, going for months now from Grey Lockdown to Grey Lockdown back to back...