So far, the COVID-19 pandemic has had little effect on the German housing market. It has left barely a mark on real estate prices or rentals. But the pandemic is not over yet, and even if it was: the past months have triggered some developments that will transform our working world and are likely to have a considerable impact on the housing market in the long term.
Berlin’s recently introduced rent control policy is Germany’s single most stringent rent regulation tool. The law prohibits any rental increases for a period of five years. In the case of new rentals, the rent a landlord is allowed to charge is determined by fixed reference values based on the age and fittings of the unit in question.
Regional economic differences are not the exclusive preserve of Germany. They exist in almost all economies. However, the inequality between east and west Germany, can also be explained by means of a different divide: the economic gap between urban and rural areas.
