German officials facing protests about threats to affordable housing in Berlin have decided the solution may be a five-year ban on rent increases.
German officials facing protests and endless complaints about threats to affordable housing in the nation’s capital have decided the solution may be a five-year ban on rent increases and fines as high as $550,000 for violators.
Apartment dwellers in Berlin have complained about the doubling of rents during the last decade. Thousands of residents have supported the expropriation of about 200,000 apartments, much like private land claimed by government officials via eminent domain, to help keep rents down. Rents in Berlin are generally lower than in other capital cities in Europe and the United States — with the price for an average-sized furnished apartment of about 750 square feet costing $1,180, according to a survey byBut because rents in Berlin have doubled in the last decade, according to a survey by online housing portal immowelt.
Lay said that the comparatively moderate rents had helped make Berlin one of the most livable big cities in the world and that it was important that the German capital remain affordable for nurses, car mechanics as well as ordinary income earners from all walks of life. “It will scare away investors who will find alternative markets with less regulation,” he said. “It’s a socialist and populist attack on the free market and it’s not going to lead to a single new apartment being built.”
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