Mayor of Berlin: “The right to live is more important than profits on the housing market”

City of Berlin bought 14,750 apartments from the two real estate giants and this is another step in the fight against the city state’s affordable housing crisis.

30,000 tenants affected could now rely on the fact that their apartments would be part of the affordable segment permanently.

With this move, Berlin is starting a new “Rent Cap” initiative for the entire country in the Bundesrat.

According to the CEOs of real estate companies Vonovia and Deutsche Wohnen, there are many winners in this deal, and no losers. It will not affect the construction activities commissioned by several state-owned companies. Step by step, more public housing is supposed to be available. At this stage, the total number of rental apartments in the city, held by both private and state-owned companies, is 1.67 million. Some of the apartments Berlin just purchased used to be public property before. Since the year 2000, the city state had sold 20,000 apartments for relatively low prices, reports Berlin Spectator.

Mayor of Berlin Michael Müller stated that the right to live is more important than profits on the housing market and he demanded more possibilities for the regulation of rents in Germany.

 

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