As bad as Dublin? In Berlin’s broken rental market, 200 people apply for one apartment

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The problems facing Germany’s second most expensive rental market are similar to our own: a lack of new builds, a surge of new arrivals and a failed attempt to cap rents. Now the city wants to buy back privately owned homes - but will it work?

There is no shortage of data to prove the point. Since 2014, average rents have increased by 55 per cent, with rents in popular areas increasing by twice that.

“Nestled in the corner of an image of the room,” wrote one traumatised Berlin flat-hunter in a recent online post, “lay a reflection of the male photographer’s genitals.”A lack of new apartments remains the Achilles heel of the Berlin property market. Photograph: iStock A lack of new apartments remains the Achilles heel of the Berlin property market. After a population slump in the early 2000s, as many Berliners moved out to the greener plains of surrounding Brandenburg, the city’s population began growing again in 2012. Every year until 2020, about 30,000 people arrived on average, without new apartments being built.

Two decades on, the same CDU has been voted back into power in Berlin’s city-state senate. With the Social Democratic Party , it is promising 20,000 new apartments a year, including 5,000 new subsidised social units. “We need new builds,” says Wibke Werner, head of Berlin’s leading tenants’ association, “but you have to look closely in which price segment they are being built”.

 

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