← Back to Blog

Berlin rental cap leads to less supply of affordable rental apartments

  • Data Insights
Published by Antje Heber 4 months ago
  • Number of offers of capped apartments dropped by around 56 percent
  • Net cold rent of uncapped apartments increased by about 14 percent
  • Net cold rent for capped apartments dropped by about 4.5 percent

The PropTech company PriceHubble, which specialises in data-driven real estate and market analyses, has examined the effects of the Berlin rental cap in a recent study. For the analysis, a net total of around 100,000 apartment offers posted on major real estate portals during the past two years in Berlin were analyzed. A distinction was made between apartments that were built before 01.01.2014 and for which the rental cap is therefore applied ("capped rental apartments") and those apartments that were built after 01.01.2014 and can therefore continue to be offered as "uncapped rental apartments". 

Apartments affected by the rental cap are taken off the market

The number of offers of capped rental apartments has significantly decreased by about 56 percent after the regulation came into force, while the offers of uncapped rental apartments in the market have only slightly decreased by 9 percent. Since a significant decline is only observed for capped rental housing, exogenous shocks affecting the entire market, such as the Corona pandemic, can be ruled out as an explanation.

Verlauf Anzahl Mietangebote.png
Course of the average number of new rental offers

"It can be assumed that many owners, especially private capital investors, are observing the developments on the market with caution and are thinking about selling their property," explains Christian Crain, Managing Director of PriceHubble Deutschland GmbH. "A large proportion of these apartments could thus be permanently removed from the rental stock, because if they can no longer be profitably rented, they could be converted into condominiums and sold at free market prices at the current historically high market level."

Net cold rents of uncapped rental apartments rise three times as much as rents of capped apartments drop

The sharp decline in supply of capped rental apartments could be a major reason for the significant increase in rents of uncapped rental apartments by about 14.1 percent from 14.81 euros per square metre to 16.90 euros per square metre. 

Mietpreis ungedeckelt (1).png
Rent price development for uncapped rental apartments

In contrast, the rents of rental apartments affected by the rental cap have only dropped by about 4.5 percent from 11.48 euros to 10.97 euros per square metre in the same period. 

Mietpreis gedeckelt.png
Rent price development for capped rental apartments
Preisentwicklung gedeckelt.png
Average rents per month

“Our analysis shows that with the rent cap there is not more, but less affordable housing available, and thus exactly the opposite of the actual intention of the ordinance has come to pass," says Crain. "This once again makes the Berlin market a seller's market and we expect purchase prices for condominiums to continue to rise here."

Other blog entries
How to convert your leads and get more exclusive contracts: 4 essential steps

Julien Cornette, real estate expert and coach, explains the four essential steps to converting your leads more efficiently and securing more exclusive contracts.

  • Best practices
Read more →
inside pricehubble blog founding story.png
Our founding story: how it all began

This year, PriceHubble celebrates its fifth anniversary. But how did the foundation of PriceHubble come about? Who founded it and why? We are taking a journey back in time to mark five years of PriceHubble.

  • Inside PriceHubble
Read more →
Real estate marketing: 6 key points for a successful strategy

In a sector as competitive as the real estate industry, it is vital for realtors and agencies to use the resources of marketing and communications. Why? To stand out from their competitors, generate more leads and convert them into new clients.

  • Best practices
Read more →
Thank you for your inquiry. We will contact you shortly.
Something went wrong. Please try again in a while.