Berlin is suffering from an escalating housing crisis, with median asking rents surging by 21.2% in 2023. Once seen as a model for progressive housing, the city now grapples with a heated property market exacerbated by landlords exploiting legal loopholes. These loopholes allow apartments to be rented as temporary, furnished units, which bypass vital rent control laws. This dynamic has allowed landlords to charge rates that are significantly higher than those of traditional long-term rentals, putting affordability further out of reach for many residents.
Berlin's housing crisis has escalated, with median asking rents rising by 21.2% in 2023, driven by landlords exploiting a loophole in German law for temporary, furnished rentals.
The German civil code's exemption allowing landlords to charge excessive rents for furnished temporary apartments has significantly contributed to Berlin's overheated property market.
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