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by Zahlmeister
3252 days ago
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Real estate prices all over the world have gone up as a consequence of zero-interest monetary policy. Berlin is still on the cheap end, so it's still attractive to buy there even now. Rents don't go up proportionally, simply because the demand isn't there. During the US housing bubble, rents didn't go up either, while property prices went through the roof. > Do you know nobody living cheaply with an old contract that they would never get today, and that their landlord can't increase to market rate? Cause I know loads such people and this would not happen in a place without rent controls. That's because most contracts specify that increasing the rent follows the standard procedure: Over three years, rent can rise by up to 20% (15% in Berlin), if the comparable rents in the area have risen as well (which is influenced by market rate). Ultimately, this limits the pace at which rents rise, but not the extent. In Berlin, only very few areas could sustain such growth, whereas in places like Munich where people earn way more, rents have risen much higher. This is also not the rent control specific to Berlin (which is what you originally referred to), these are federal regulations. |
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All of Germany is under rent control in that context, and IMO it works compared to exploding rents in the US and other countries (UK, Israel, most places really aside from some of continental Europe).
This is a form of rent control almost nobody in the rest of the world outside of continental europe enjoys - prices generally rise as quick for current tenants as they do for everyone there: your landlord can tell you tomorrow than the next time your contract is up to renewal (usually yearly), the price will be 2x the current one and if you don't like that you have to leave.