Real estate market: There are enough regulations

Anyone who thought that with Franziska Giffey at the head of the Berlin Senate would end the urge to regulate housing construction is mistaken. The Governing Mayor’s proposal to limit the amount of rent to 30 percent of income shows the usual pattern: problems on the housing market are to be solved with ever new regulations.

Apart from the fact that the proposal is completely unrealistic and would create a bureaucracy monster of unimaginable proportions: the real estate market already knows enough regulations. Whether rent control, rent cap, milieu protection – all this is not suitable to solve the main problem of the tenants, namely to eliminate the housing shortage or even to help them to own property.

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