The Constitutional Court annulled the controversial law that froze rents in Berlin. This law was introduced to counter the rapid rise in home prices in the capital.
The Karlsruhe Supreme Court said that the law went into effect last year, but “contradicts the constitution and has therefore been repealed.”
Tenancy law is a federal jurisdiction. The Berlin government overstepped its limits when it enacted this law, and the Supreme Court made its decision clear. It agreed with the conservative and liberal opposition parties, which resumed. The real estate industry has also opposed the law.
The law, which went into effect in February 2020, was passed by 85 votes out of 150 in the Berlin Parliament, with the left and green parties having the majority. It imposed a rental freeze for two years, and then an end to the increase was put in place.
This symbol file was all about old homes in the private market. That’s about 1.5 million depending on the city. The law, which will remain in effect until 2025, also stipulates that rents that have risen excessively will decline.
The aim was to combat the sharp rise in rents in Berlin in recent years. Although Berlin is one of the most expanding capitals in Europe, the city suffers from a shortage of housing.
Berlin used to be “poor but exciting,” and today the capital of 3.6 million is a dynamic economic hub, especially for startups. Over the past decade, these dynamics have attracted a young, highly skilled workforce, although the pandemic has slowed this trend.
Berliners spend on average a quarter of their wages on their homes, according to the latest figures from real estate website Immowelt. Only 18.4 percent of them own their homes. This is one of the lowest proportions in Europe.