A ruling in a Berlin court may have big effects both on housing and rents in Berlin and the availability of vacation rentals in the German capital which has both a growing tourism trade and a growing housing shortage.
A law passed ten years ago sets aside some housing for long-term residents and bars changing the apartments to commercial or short-term use, and allows officials to order them returned to long-term use. But, until a recent court ruling, was applied only to properties shifted or 'misappropriated' after the law was passed.
The ruling by the Upper Administrative Court of the state of Berlin-Brandenburg applies the law to properties that were shifted without legal approval even before the act was passed, potentially returning several thousand units to long-term rental, easing a housing crisis that has seen rents more than double in the past ten years.
While forced return may involve a lot of properties, it will not totally alleviate the situation, which requires a great deal of new construction as well, as much as 20,000 units per year. If authorities use their full powers under the ruling, it will certainly also make legal Airbnbs harder to come by for visitors.
Comments (5)