Rental price brake in Berlin: social trap or necessary protection?

Rental price brake in Berlin: social trap or necessary protection?

Berlin, Deutschland - The Berlin housing crisis continues to come to a head. On May 31, 2025, the city administration decided to extend the rental price brake by the end of 2029. This legal regulation, which has existed since 2015, is intended to slow the increase in living space rents in one of the most expensive metropolitan areas in Germany. However, there is violent criticism of its effectiveness and possible negative consequences for the housing market. Leading associations warn that the rental price brake has brought barely noticeable relief for those seeking housing in the past ten years, while the social segregation in Berlin is increasingly increasing. According to a report by the Berliner Zeitung currently 49 out of 50 applicants are empty on one apartment.

The situation is tightened by a growing renovation backlog in old building apartments. The inflationary construction costs and rising interest rates question the financing of new property developer projects. Last year, the number of building permits in Berlin decreased by almost 40%, which means that many approval -ready projects stand still. According to experts, the new paragraph 36a of the Building Code, which promises more quickly processing of the building applications, has had little effect. As a result, only around 15,000 new apartments were completed, while the need is at least 50,000 per year.

Reality of the rental price brake

The rental price brake allows landlords to demand a maximum of 10% above the local comparative rent for new rentals. This regulation actually serves to protect tenants from exorbitant price increases. However, the reality is that the majority of the support does not benefit those seeking housing, but above all benefits existing tenants. According to the Federal Justice Minister Dr. Stefanie Hubig is necessary to extend the rental price brake as a first step in order not to let the living go into a luxury good.

In addition, it is feared that looking back changes, such as a possible expansion of the rental price brake to buildings completed by 2019, could undermine trust in the legislator and deter investors. Dr. Hubig plans to discuss this proposal again in a future legislative process. The steadily increasing rents in particular influence families who are forced to avoid the outskirts or the surrounding area of ​​Berlin in order to find affordable living space.

Legal aspects of rent increases

Another complex component of the housing market in Berlin is the possibility of rent increases according to modernization measures. Readers can change part of the costs for such measures to the rent in accordance with Section 559 of the German Civil Code, which often leads to price increases. There are certain conditions under which these rent increases are permitted, for example the energetic modernization or improvement in general living conditions. In practice, however, many rent increases are perceived as intolerable, which is reinforced by the fact that rents in Berlin are unaffordable for many families in the new building segment.

These rules are important to protect the rights of the tenants, but implementation in practice remains a challenge. The applicable capping limit stipulates that the rent may increase by a maximum of 3 euros per square meter within six years. In view of the current market situation, however, the question arises whether these regulations are sufficient to take the needs of the tenants into account. berlin.de provides a comprehensive overview of the tenancy law provisions and options for tenants To defend increases.