[imtringued]

According to Berlin 5€ per m² is a fair market value for a 50+ year old apartment. It's obvious that new construction can never reach a price that is this absurdly low.

I've never understood this focus on rental pricing. The problem has never been the price, how can prices constantly go up if nobody can afford them? Well, the answer is that someone can actually afford the price and for some reason you are competing with that person that is far more richer than you. Remember one of the core causes of inflation? Too much money chasing too few goods? It's not just printing an excessive amount of money that is necessary to cause inflation. You also need a shortage of goods. You need to have more people than housing to cause inflation of rental prices. If there are 10 houses but 15 people then you can be assured that landlords will only care about renters with high incomes and construction companies will focus on building for these high income people first and only after there is enough housing will they build housing for the less wealthy residents.

[heavenlyblue]

Does this imply I can build a 100-100m2-flat-house for 50000 EUR? How many 0 digits did you miss?

[lonelappde]

I think parent meant 5EUR/m^2/month?