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The Mietpreisbremse is coming under increasingly heavy fire. Originally designed to put a brake on rampant rental increases, restricting rents to a maximum of 10% above local benchmarks, the legislation was introduced last summer and immediately met with a mixture of protest and disbelief (from those within in the residential real estate industry), doubt (from those who predicted that this would be a toothless tiger) and warm acceptance (from those …

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Milieuschutz – necessary intervention or a step too far? In this third article on the German housing market, we’re moving on to the third currently hot “M” in the German residential real estate industry – Milieuschutz. Unlike the Mietpreisbremse (a product of Germany’s current coalition government), protecting the character, identity and social mix of a neighbourhood via Milieuschutz goes back more than 40 years to the early 1970s.   Restricting …

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Mietpreisbremse – putting the brakes on In this second article on the German housing market, we’re going to examine the recent Mietpreisbremse (rental control/cap, literally “rental brake”) legislation and see how it ties in with the Mietspiegel from part one. If you are an investor, landlord or tenant in one of Germany’s major cities, you are probably going to feel the impact of the Mietpreisbremse sooner, rather than later. As mentioned …

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The Mietspiegel—A funhouse mirror There is a great deal of interest in Germany’s housing markets from overseas‘ investors and there are a large number of non-German speakers living in the country, particularly in major cities such as Berlin, Munich, Frankfurt and Hamburg. Germans have a long-standing preference for living in rented apartments rather than buying property—although this might change slightly thanks to low interest rates and steadily increasing rents. In …

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