Rental rates increase in major cities of Germany will be limited. It is expected that the law approved by government will act in 2015-2020 and will support students and young families, as the new rules are targeted to the most "overheated" real estate markets, informs the ee24.com referring to the German web media The Local.
Henceforth, the landlords will not be able to raise the rent by more than 10% of the area’s average housing or rent cost and will have to pay agent’s services which currently burden the wallets of tenants. German authorities hope that the new law will help to restrain soaring prices for property rent in Berlin, Frankfurt, Munich, Hamburg, Stuttgart and other German cities.
The new law won’t cover new buildings or buildings that have undergone a significant upgrade. These measures should prevent decrease in construction volumes.
Average rental rates in Germany in Q2 2014, in euro per sq.m
