Berlin’s Pact on Rent and Investments in Housing: An Instable Cartel or a Precedent for New Construction and Affordable Rents?

August 2022
Region: Europe
As in many other capitals and larger cities in the world, Berlin’s population has faced significantly increasing asking prices for rent over the last 10 years. At the same time, fluctuation and flexibility of tenants with their German live-time contracts has remained on a very low level (the average actual rent is still far below the levels in London, Paris, Rome and New York, to name a few). New housing developments and construction are needed in Berlin. They are still moving forward too slowly to cover the current demand and shortfall in affordable apartments.