[fredm-de]

Luxury housing, too, does create supply. Prohibiting the construction of luxury apartments will just end with rich people paying luxury money for standard apartments thus raising prices and people with less financial means will be priced out.

[oytis]

Or will just move to a city that is willing to provide them living conditions they want (Munich, Hamburg, whatever).

Also when we consider new houses, luxury house creates less supply than a normal one by having fewer apartments.