In Berlin, advertisements for rental apartments fell by 25 percent between July 2019 and July 2020, as a study has now shown. Experts cite the local rent cap as a possible reason.
Rent cover could have missed its purpose
Looking for an apartment in big cities turns out to be a major challenge for most people. On the one hand, rental costs are rising, and on the other, there is a chronic shortage of apartments.
To counteract this, politicians repeatedly talked about a possible rent cap, with the aim of relieving the particularly critical markets of the overvoltage in the long term and relieving tenants.
As a study by ImmoScout24, which was carried out on behalf of WirtschaftsWoche (WiWo), has now shown that the rent cap could have provoked the opposite effect.
Fewer rental properties in Berlin
The real estate portal analyzed the advertisements from July 2019 to July 2020 in the federal capital Berlin. The special thing about the Berlin real estate market is that the red-red-green state government was the only one to legally anchor the rent cap.
The study shows that within the underlying period of one year, the supply of rental apartments has fallen by a full 25 percent. The analysis also shows a significant decline in advertisements built before 2014, i.e. the properties that are affected by the rent cap.
Here, a decline in supply of 47.4 percent can be seen, which contrasts with an increase of 24.4 percent in new-build advertisements. The decline could not be offset by new projects. At the same time, more and more owners are betting on the sale of their property, so 38.8 percent more apartments were offered for sale than last year.
This is the logical consequence of the falling rental income of these properties, here the square meter prices have fallen by more than one euro from 12.91 to 11.90 euros per square meter on average. So an amount that should not be neglected, as a simple calculation example shows. For a 100 square meter apartment that would be 110 euros per month or 1,320 euros per year, which the owner earns less.
Opposite trends can be seen in Germany’s metropolises of Frankfurt am Main, Hamburg, Munich, Stuttgart, Düsseldorf and Cologne. Here, the rental advertisements for the properties in question rose by 33.4 percent from July 2019 to July 2020, while the offers to buy fell by 5.9 percent.
“The rent cap causes immense damage – for tenants and landlords,” comments Kai Warnecke, President of the Haus & Grund association in an interview with WirtschaftsWoche. He explains, “for anyone who does not go through life with ideological blinkers, [war dies] to foresee. “
According to ImmoScout24 managing director Thomas Schroter, it is now more difficult than ever to find a rental apartment in the federal capital, as he commented on the results to WirtschaftsWoche.
While the study suggests that the experiment of the rent cover may be restructured or rethought, Bernd Riexinger, head of the Left, takes a contrary position, as he revealed to the WiWo: “The hard facts do not speak in favor of a change of course, but an intensification of the Measures. “The Corona crisis also has something to do with the decline in the number of rental apartments advertised, as fewer people have moved out of the apartments due to financial uncertainty, Riexinger said. However, this is countered by the fact that this was not the case in any of the other large cities.
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