"Explosion" of rents in German cities. Recorded in Berlin

natemat.pl 3 months ago

Since 2015, despite the freezing of rents, they have risen dramatically in the largest German cities. The Left organization calls on the government to act.

In large German cities, despite the reduced rent growth, the rent is becoming more expensive. According to an analysis carried out by the Ministry of Construction, rents in the 14 largest cities increased on average by almost 50 percent since 2015. The most affected is Berlin, where rents of fresh leases have more than doubled.

Data comes from the national Institute for Construction Research, Cities and Space (BBSR). They reflect the offer of those looking for an flat erstwhile looking for an online rental facility of 40 to 100 square meters. Notices, waiting lists and direct recommendations of real property agents are not included. According to the ministry, it could distort the data.

Berlin, Leipzig and Bremen with the biggest plus

The analysis shows that the most costly rental is inactive in Munich, where the price per square metre is almost 22 euros. Then there are Berlin with almost 18 euros and Frankfurt am Main with about 16 euros per square metre. The biggest increase in rents in Berlin (plus 107%) was recorded in Leipzig (plus 67.7%) and Bremen (plus 57%). The lowest rent increase after the decision was recorded in Dresden (28.4 percent).

Adjustable full of gaps

The MP of the Left Caren Lay, who asked the national government for this data, criticized: "As a consequence of the rent explosion, especially the city's inhabitants, money is drawn out of their pockets, moving is becoming impossible, and all this deepens divisions in our society." In her opinion, the regulation of the freezing of rents was so punctured that it did not supply any effective protection. Lay criticized the CDU/CSU and SPD government for simply wanting to extend this solution without further tightening.

The alleged rental brake limits rents in fresh contracts in regions with a tense housing marketplace situation. Where applicable, rents shall not in rule exceed by more than 10 per cent of the local comparative rent at the time of the conclusion of the fresh contract. However, there are exceptions, specified as payment for furniture. fresh buildings that were first rented after 2014 and thoroughly renovated apartments are besides excluded.

Housing shortage

Increases above the standard local comparative rent besides let indexed rent. Indexed rents are linked to inflation. If the overall price increase is, for example, 5 percent, rent can besides be increased by that percentage. Moreover, there is no public price control: if tenants are afraid of violating the rent limit, they must take action against the owners themselves.

One of the main reasons why rents in many German cities are increasing rapidly is housing shortages. Data from the national Statistical Office show that the number of recently built apartments in Germany has late fallen. In all Germany, about 251,900 housing units were built last year – 14.4 percent (42,500 housing units) little than in the erstwhile year. As early as 2023, the number of recently built housing units compared to the year fell, but only slightly, by 0.3 percent.