Renting a place to live in Germany’s major cities is becoming increasingly expensive despite rent control, an analysis by the government’s Housing Ministry showed.
Advertised rents in the 14 largest independent cities have risen by nearly 50% on average since 2015, the data showed. Berlin has been hit the hardest, with new rental prices more than doubling.
The figures, provided by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), reflect the rental offers available to those searching online for flats between 40 and 100 square metres.
However, the ministry warned that the data could be distorted as it does not account for notices posted in public spaces for housing, waiting lists, or direct broker mediation.
Berlin, Leipzig and Bremen see largest increases
Munich remains Germany’s most expensive city for renting, with prices reaching nearly €22 ($25.30) per square metre, the analysis showed.
That was followed by Berlin with nearly €18, and Frankfurt am Main with around €16 per square metre.
The largest rent increases were recorded in Berlin (up 107%), Leipzig (up 67.7%) and Bremen (up 57%). Dresden saw the smallest increase in rents at 28.4%.
Rent control criticized as ineffective
Caren Lay, a Left Party member of parliament who requested the data from the federal government, criticized the situation.
“The explosion in rents is draining money from urban tenants, making moving impossible, and contributing to the further social division of our society,” she said.
She argued that the rent cap is riddled with loopholes and offers no effective protection. Lay also warned that the conservative-social democratic government is planning to just extend the regulation – not tighten it.
Rent control laws limit rental prices in regions with tight housing markets. Where it applies, rents for new leases are generally not allowed to exceed the local comparative rent by more than 10%.
However, there are exceptions, such as surcharges for furnished flats. Newly built properties first rented after 2014 and extensively modernized flats are also excluded.
But there is no government supervision monitoring landlords. Tenants must take legal action themselves if they suspect a violation.
Source: dpa.com
