Berlin rental market on the verge of collapse: owners in crisis!

Berlin rental market on the verge of collapse: owners in crisis!

In Berlin, property owners are facing significant challenges while asking rents are rising rapidly. According to a report by Berlin newspaper Many old apartments continue to have the same rents, while financing costs increase. Owners face financial burdens that make it difficult to view real estate as a lucrative investment.

The situation on the housing market is complex: identical apartments, for example, have rents of up to 1,500 euros compared to 400 euros. High interest rates and increased requirements for renovations and energy efficiency contribute to the pressure on landlords. Especially in districts like Neukölln, Kreuzberg and Charlottenburg, many apartments are still at the old rent level, but the political discussions usually focus exclusively on tenant protection, which means that the needs of landlords are often overlooked.

Frustration among tenants and landlords

The inequality in the rental market is causing frustration among tenants who have to pay high prices, while private owners, especially families and pensioners, are also struggling. The German Tenants' Association (DMB) criticizes the fact that the topic of renting and housing is hardly being addressed in the upcoming election campaign for the 2025 federal election. Loud DMB The rental price crisis will continue to worsen in 2025 as rents in large cities become unaffordable for many households. Almost one in three of the 21 million renter households in Germany is overwhelmed by high housing costs.

The rent control will expire at the end of the year without replacement, while the stock of social housing is at an all-time low. Many tenants who live in big cities are afraid that they will no longer be able to pay the rent. DMB President Lukas Siebenkotten and Federal Director Melanie Weber-Moritz are therefore calling for comprehensive reform policy measures and an offensive to create affordable housing.

Political demands and solutions

The political proposals to solve the housing shortage can be found primarily in the election programs of parties such as the SPD, ALLIANCE 90/THE GREENS and THE LEFT. In contrast, the CDU/CSU is committed to the existing tenancy law framework, while the AfD and FDP are aiming for a further reduction in tenant protection. In particular, the DMB is calling for the extension of the rent cap at the federal level in order to prevent rent increases in numerous cities.

The discussion about the future of living in Berlin and Germany is urgently needed. If the owners continue to reach their economic limits, the availability of living space could be seriously jeopardized. Therefore, differentiated discussions about the needs of everyone involved, including age division and responsibility, are essential.

The DMB is pushing for effective measures to tackle the rent and housing crisis. These include, among other things, reforms of the rent extortion paragraph and an investment program for affordable housing, which is to be exempt from the debt brake. The need to create social housing and affordable rental apartments is a top priority in the political discussion.