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Gulf Press > World > Advocates urge German government to control real estate prices
World

Advocates urge German government to control real estate prices

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Last updated: 2024/08/22 at 7:39 AM
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Berlin’s rental market is currently under scrutiny due to the high number of temporary furnished apartments being offered at exorbitant prices, which are not subject to rent control laws. The Berlin Tenant Association is calling on the Justice Ministry to strengthen tenancy laws to address this issue. However, the Ministry has stated that it will not be changing the law, citing a report that suggests the construction of new housing will help combat rising rents in the long term. The Free Democratic Party, which leads the Justice Ministry, believes the focus should be on building more affordable housing quickly, rather than imposing regulations.

The lack of affordable housing in Berlin has made it difficult for individuals like Jim Berghäuser, a law student who spends hours commuting to and from his university due to his apartment’s location on the outskirts of the city. With the high demand for long-term rental contracts that are rent-controlled, the abundance of temporary furnished apartments is taking away housing supply from those in need. The Berlin Tenant Association argues that owners should be required to disclose the value of furniture in their apartments to prevent them from charging excessively high prices.

The crisis in house building in Germany has been exacerbated by rising costs and high inflation, leading to the construction of housing falling below government targets. Despite efforts to increase the supply of housing through new construction, the growing demand for affordable rentals remains a pressing issue. Germany, like many European countries, has a high proportion of renters compared to homeowners. In Spain, the government has also taken steps to address short-term rentals by investigating companies like Airbnb to ensure compliance with tourism accommodation regulations.

The struggle to find affordable housing has left individuals like Jim feeling cynical about the apartment search process. After more than a year of searching, he has faced numerous rejections, leading to disappointment and frustration. The German government is considering strategies to encourage people to move to rural areas to alleviate the housing shortage in cities like Berlin. Despite the challenges faced by renters in finding suitable accommodation, the government and relevant authorities are working towards finding solutions to address the current housing crisis.

In conclusion, the rental market in Berlin is facing challenges due to the abundance of temporary furnished apartments being offered at inflated prices. The Berlin Tenant Association is advocating for changes to tenancy laws to address this issue, but the Justice Ministry has stated that there is no need to change the law. The focus remains on increasing the supply of affordable housing through new construction, with the government aiming to present strategies to combat the housing shortage. As individuals like Jim continue to struggle with the apartment search process, efforts are being made at both local and national levels to find solutions to the ongoing housing crisis in Berlin and across Germany.

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News Room August 22, 2024
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