January 30, 2020

Berlin Adopts Five-Year Freeze to Rein In Soaring Rents
(Bloomberg) -- Berlin’s plan to rein in the city’s rental market was approved by lawmakers, capping revenue for property owners and potentially driving investors away from the German capital. Shares in major landlords slumped.Berlin’s legislature backed measures including a five-year rent freeze Thursday, more than six months after they were proposed by the left-leaning administration. The changes will likely come into force by the end of February, though opposition parties have signaled their intention to challenge them in court.The initiative put forward by the Left party’s Katrin Lompscher, head of urban development and housing, is intended to ease the burden on tenants after a property boom caused rents to double over the past decade. The political intervention has spooked investors as a separate campaign attempts to force Berlin’s government to expropriate properties from large landlords including Deutsche Wohnen SE.“We don’t want Berlin to become a copy of overpriced cities like London and Paris, where many people can no longer afford an apartment,” Lompscher said during the debate that preceded the ballot. Out of 150 votes cast, 85 lawmakers voted in favor and 64 against, with one abstention.Deutsche Wohnen shares fell as much as 2.1% and were down 0.6% at 1:30 p.m., extending its decline over the past 12 months to about 13%. Vonovia SE, Germany’s largest landlord and owner of about 40,000 apartments in the capital, declined as much as 1%, and Berlin-based property owner Adler Real Estate AG dropped as much as 2.4%.The Christian Democratic Union -- Chancellor Angela Merkel’s party, which is in opposition in Berlin -- plans to challenge the measures in Germany’s constitutional court “as soon as possible,” according to a spokesman. That can only happen once the new legislation takes effect.The adoption of the measures “sends a fatal signal to investors,” Ulrich Lange, a deputy leader of Merkel’s bloc in the national parliament, said in an emailed statement.“What’s more, there’s a high possibility that the law will be declared unconstitutional,” Lange added. “That will create rental chaos. It cannot be emphasized enough that the only solution that will ease the pressure on Berlin’s rental market remains: build.”‘El Dorado’Michael Voigtlaender, an economist at the Cologne-based IW Institute, has also criticized Berlin’s focus on rent controls rather than encouraging investors and developers to build more affordable homes to keep pace with the city’s rapidly growing population.The government’s actions are a catastrophe that “threatens to cause considerable damage to both the housing market and Berlin as a whole,” the IW said in a recent report for the CDU. The value of some properties in the city could fall by more than 40% as a result of the rent restrictions, the institute estimates.Lompscher has dismissed such concerns. In an interview this month, she called Berlin an “El Dorado” for real-estate companies. Her department has worked closely with other German cities, and she expects Berlin’s intervention in the property market to “have consequences” within the country and internationally.Not everyone agrees, though. Vonovia this month described the rent reforms as “Berlin specific.” The company doesn’t expect the measures to be replicated by other German states “except in the unlikely event that the Federal Constitutional Court were to rule largely in favor of the legislation,” Vonovia said in a Jan. 23 note to investors.(Updates with lawmaker comment from seventh paragraph)To contact the reporter on this story: Andrew Blackman in Berlin at ablackman@bloomberg.netTo contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Iain Rogers, Chris ReiterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
Tracy Morgan Hands Out Turkeys to Long Line of New Yorkers | TMZ
November 24, 2020
BW7UB1bkvxI
Chris Hemsworth Working On Body, Chris Pratt Pokes Fun | TMZ TV
November 24, 2020
2giqjWteb4Y
Kamala, Jill Should Pick American Designer For Inaugural Ball Dress, Michael Costello Says
November 22, 2020
cGsraoPqUzM
Katherine Heigl Learns NSFW Meaning of Harry Styles' "Watermelon Sugar" | E! News
November 25, 2020
LOh670tuLvI
The Weeknd Calls Out Recording Academy After Grammys Snub | E! News
November 25, 2020
C-LHfTO2wD4
Meghan Markle Reveals She Suffered a Miscarriage | E! News
November 25, 2020
Jm-mdT4Z-Uk
7 Questions with 'Wild Irish Thyme' Star Jamie Dornan
November 25, 2020
bqZLJEd8Gxs
Why 'Selena' star Christian Serratos Chose to Lip-Sync Selena's Songs
November 25, 2020
FNz_Pal3qeo
'Time' Director Garrett Bradley on Covering Incarceration, Why Black Family Archives Are Important
November 23, 2020
m7j3n7dPFOI
Interim ‘Jeopardy!’ host Ken Jennings slammed for wheelchair tweet | Page Six Celebrity News
November 25, 2020
GF8JOA07ZpI
The one with the cast of 'Friends', then and now | Page Six Celebrity News
November 25, 2020
FLlqmbxCjnI
Bill Murray’s brother Ed, inspiration behind ‘Caddyshack,’ dies | Page Six Celebrity News
November 25, 2020
VEzPd5ot58g
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
25
Nov
ENGLAND: Championship
Middlesbrough - Derby County
25
Nov
ENGLAND: Championship
Bristol City - Watford
25
Nov
ENGLAND: Championship
Swansea City - Sheffield Wednesday
25
Nov
ENGLAND: Championship
Coventry - Cardiff City
25
Nov
ENGLAND: Championship
Millwall - Reading
24
Nov
ENGLAND: Championship
QPR - Rotherham
24
Nov
ENGLAND: Championship
Stoke City - Norwich City
24
Nov
ENGLAND: Championship
Bournemouth - Nottingham Forest
24
Nov
ENGLAND: Championship
Preston NE - Blackburn
24
Nov
ENGLAND: Championship
Luton - Birmingham
24
Nov
ENGLAND: Championship
Wycombe Wanderers - Huddersfield
24
Nov
ENGLAND: Championship
Barnsley - Brentford
23
Nov
ENGLAND: Premier League
Wolves - Southampton
23
Nov
SPAIN: La Liga
Athletic Bilbao - Real Betis
23
Nov
ENGLAND: Premier League
Burnley - Crystal Palace
22
Nov
ITALY: Serie A
Napoli - AC Milan
22
Nov
ENGLAND: Premier League
Liverpool - Leicester City
22
Nov
ENGLAND: Premier League
Leeds - Arsenal
22
Nov
ITALY: Serie A
Inter Milan - Torino
22
Nov
ITALY: Serie A
Roma - Parma
22
Nov
GERMANY: Bundesliga
Koln - Union Berlin
22
Nov
SPAIN: La Liga
Alaves - Valencia
22
Nov
ENGLAND: Premier League
Sheffield United - West Ham United
22
Nov
ITALY: Serie A
Udinese - Genoa
22
Nov
SPAIN: La Liga
Granada CF - Real Valladolid
22
Nov
ITALY: Serie A
Verona - Sassuolo
22
Nov
SPAIN: La Liga
Cadiz - Real Sociedad
22
Nov
ITALY: Serie A
Sampdoria - Bologna
22
Nov
GERMANY: Bundesliga
SC Freiburg - Mainz
22
Nov
SPAIN: La Liga
Eibar - Getafe
22
Nov
ENGLAND: Premier League
Fulham - Everton
22
Nov
ITALY: Serie A
Fiorentina - Benevento
21
Nov
SPAIN: La Liga
Atletico Madrid - Barcelona
21
Nov
ENGLAND: Premier League
Tottenham Hotspur - Manchester City
21
Nov
GERMANY: Bundesliga
Bayern Munich - Werder Bremen
21
Nov
GERMANY: Bundesliga
Hertha Berlin - Borussia Dortmund
21
Nov
ENGLAND: Premier League
Newcastle United - Chelsea
21
Nov
ENGLAND: Premier League
Manchester United - West Bromwich Albion
21
Nov
ITALY: Serie A
Juventus - Cagliari
21
Nov
SPAIN: La Liga
Villarreal - Real Madrid
21
Nov
GERMANY: Bundesliga
Eintracht Frankfurt - RB Leipzig
21
Nov
SPAIN: La Liga
Sevilla - Celta Vigo
21
Nov
ITALY: Serie A
Spezia - Atalanta
17
Nov
UEFA NATIONS LEAGUE A: Group Stage
Spain - Germany
14
Nov
UEFA NATIONS LEAGUE A: Group Stage
Germany - Ukraine
08
Nov
ENGLAND: Premier League
Manchester City - Liverpool
08
Nov
ENGLAND: Premier League
Arsenal - Aston Villa
08
Nov
SPAIN: La Liga
Valencia - Real Madrid
08
Nov
ITALY: Serie A
AC Milan - Verona
08
Nov
ITALY: Serie A
Bologna - Napoli
08
Nov
ITALY: Serie A
Atalanta - Inter Milan
08
Nov
ITALY: Serie A
Genoa - Roma
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.