Prices for apartments in Berlin for the year from July 2013 to June 2014 were going up in 2 times faster than rental rates. The price index for apartments increased by 15.6 points, index of rental rates - by 7 points, writes ee24.com citing bloomberg.com.
Prices are rising because of the increased demand, which is so unusual for the market of "nation of tenants". Interest in purchasing own homes is reinforced thanks to low interest rates. Berlin became the engine of growth in prices in Germany, ahead of Munich, where housing index has added 12.2 points. On average, the index rose by 5.3 points nationwide.
Meanwhile, legislators are to address the question of regulation of prices for rent. It is planned that in some areas of Berlin, Hamburg and Munich - the three largest cities of Germany - will be banned from raising rates by more than 15% over a three year period.