Perspectives Berlin

Why Room for Living and Working Becomes Expensive and Rare in Berlin

Why Room for Living and Working Becomes Expensive and Rare in Berlin

I am indeed amazed by the beauty of the Berlin City. Berlin, the largest and the capital of German, is one of the favorite cities in Europe. Being in the most populous cities in Europe, Berlin boasts of a specific high living standard with senior as well as middle-level residential apartments.

Berlin is situated in the north-eastern of Germany. The city has a fascinating culture, beautiful landscape, fantastic history coupled with high tech firms and top service sector. No wonder Berlin is a preferred European city for the tourist as well as for city dwellers. What I find intriguing about the Berlin city is its amazing rich architecture. However, though most people would love to find a lovely living apartment to buy, it never comes easy and cheap.

Therefore, it is worthy for me to analyze this beautiful Berlin city, from its lovely buildings, apartments to buy, and how hard it is to find a living room.

Rentals in Berlin are becoming rare and expensive

The influx of immigrants in Berlin has created an enormous demand for living and working rooms. Since 2011, over 40,000 people plus refugees have moved to Berlin. I understand landlords have a long wish list of tenants who are looking for living space. From students, workers, to young couples and families looking for living quarters, Berlin has them all.

In the recent past, there has been a significant increase in the net rental cost in Berlin. According to Cologne Institute for Economic Research (IW), since 2010 the net rental prices for students housing in Berlin has increased by over 70 percent. I found out that a student in the city on average is paying a monthly rent of €430 for a living space which is approximately €11 per square meter. Also, in 2017, on average ordinary tenant’s parts with over €7.69 per square meter before factoring in the utility cost which is higher than €5.8 in 2015.

Why Are the Costs So High?

Due to ever growing demand for apartments and the low supply of the same, the renters are disadvantaged and have no much choice but to put up with the high cost. The development of rental apartment in Berlin is at a slow pace compared to the demand created. Investors prefer buying or developing their living villas, high priced houses or flats-to-own rather than the rental developments. This scenario is due to high cost and strict rules associated with its development, financing, and management as well as during disposal.

Though there are laws instituted by the relevant authority to control rent in Berlin, many of the landlords do not adhere to them. The law on new rental agreement caps the rent at less than ten percent of average rental prices in an area. Also, for continuing tenant within three years, rent prices cannot rise more than 15 percent.

You Have to Be Patient

According to the Berlin Tenants’ Association president, Reiner Wild, “the rent controls do not work and are never enforced.” He stated that it’s better for a fine to be imposed on the landlords who violate these rules.

The renters are highly disadvantaged by the low housing supply and highly ineffective rents controls. Therefore, the landlords are left with a leeway to hitch up the rental prices continuously.

Furthermore, there is the challenge of the living room being rare. I realized, to find affordable and quality living quarters in Berlin takes months. One has to continually do the search on the internet for vacant houses or regularly visit housing agents in the city.