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Mietpreisbremse

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On September 24, 2017: Germany decides   With the last Sunday in September fast approaching and election campaigning reaching fever pitch, Germany’s political parties are busily jockeying for position. It seems highly likely that Angela Merkel will continue as Chancellor, but another coalition government is definitely on the cards. Will the current Grand Coalition of Union (CDU/CSU) and SPD receive a new mandate, or will the FDP win enough votes …

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The Mietpreisbremse – literally the rental price brake – was introduced in Berlin in June 2015. Politicians hoped that the legislation would slow the rate at which rents were rising by limiting property owners’ freedoms to raise rents. In actual fact, rents are now generally increasing faster than ever.   According to a recent study from the Cologne Institute for Economic Research (IW), rents for apartments in Germany’s major cities are now rising …

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Too much regulation, too much red tape, too few incentives for developers and investors – Germany’s real estate industry seems to be up in arms on an almost weekly basis. Milieuschutz, Mietpreisbremse, Zweckentfremdungsverbot, European real estate credit agreement directives, Bestellerprinzip…the list goes on and on. Given the uproar with every market intervention proposed by attention-seeking (and vote-seeking) politicians across the political spectrum, we thought it might be interesting to discover whether …

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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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Legal changes are on their way, both due to new laws being enacted and reforms to existing laws. It is important that anyone affected has sufficient time to come to terms with the new legal landscape and can make any necessary changes to their business practices. Read on to find out about some of the key legal changes that are set to have an impact on the German real estate industry this year including changes for: estate …

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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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