The plans of Berlin’s Senator for Urban Development, Katrin Lompscher, to set a ceiling for rents is, according to experts, unlawful, scares investors and probably benefits the better-off. These live namely in the most sought-after locations for above average rents.
The goal of the Left could be to persuade investors to sell their unprofitable real estate, for multi-family homes they could then be purchased cheaply by the State of Berlin. Retail investors who wanted to secure their pension by renting can thus bring their laboriously worked out savings. For some, the road to old-age poverty. Thanks to the ECB’s low interest rate policy, this has been the last relatively safe haven for saving and securing the pension.
Meanwhile, many investors are thinking about selling their property.