The End of the Mietpreisbremse
After several years of debates, specific plans have now been reported to abolish the Mietpreisbremse again in several federal states of Germany. In North-Rhine Westphalia for example, the newly elected representatives agree upon the fact, the withdrawal of the law introduced about 2 years ago was indispensable and must definitely be implemented in their coalition agreement. Also Schleswig-Holstein`s new coalition is considering similar measures. The district court of Munich has even declared the invalidity of the Mietpreisbremse, as city authorities had made significant mistakes when implementing the law. Thereby, these federal state governments follow the convictions of both the federations representing Germany`s real estate agents, as well as Germany`s tenant association, by stating that the law is useless.
Construction Activity Cannot Tame Demand
Even if almost 14.000 new apartments were completed in Berlin within the last year and the housing stock in Germany`s capital thereby increased to a full 1.9 million units, the completion of new objects is far from sufficient to meet the ongoing demand for living space in the metropolis. Following the Berlin-Brandenburg Office of Statistics, approximately 61.000 new Berliners arrived in 2016 alone, while only 44.735 new apartments were built. An end to this trend is not in sight.
The Dynamic of the Capital
However, this development is by far no wonder, as Berlin is considered to be the best equipped German city to face the future, as the current Savills IM Dynamic Cities Index shows. Following this report, Berlin ranks among the top five cities in Europe like London, Paris, Cambridge and Amsterdam. The key factors constituting the extraordinary dynamic of the city, are its multi-facetted offerings of higher education, its attractive lifestyle offerings, as well as career opportunities, which especially attract young professionals. With such a creative and future-oriented working environment, massive increases in immigration are an inevitable result.
Real Estate Industry Important Factor of Stability
The real estate industry is also of immense importance for the German economy. Following a recent study of the Cologne Institute of Economic Research (IW), it is the most important factor of stability next to the automotive industry and the retail sector. In European comparison, it even has exemplary function and shall coin the economic model of the continent. More than 3 million employees work for relevant companies of the industry, with an annual gross value of more than 500 billion Euro, a share of almost 18 percent of the German economy.
Property Makes Happy
Following the newest study by the Allensbach Institute of Public Opinion Research (IfD) together with Wertgrund AG, 97 percent of home-owners are satisfied with their current housing situation. In all aspects available in the survey, property owners gave more positive answers than tenants, which still account for 81 percent of happiness regarding their situation of living. Categories evaluated were for example size and location of the dwelling, as well as technical condition and the relationship with neighbours. The study thereby contradicts the common cliché of over-privileged tenants and profit-seekeing landlords, which especially dominates the media. On the contrary: tenants stay in the same apartment for an average of 11 years, which can only underline their satisfaction with the situation. Simultaneously, this is an unmistakable sign of the stability of the German rented housing market.
Your Accord Estates GmbH Team