Berlin continues to be a city of tenants

Compared to other large cities, Berlin continues to be a city of tenants. Flats account for 87 % of the residential market. The share of freehold flats is below the average number of that in other German and European cities.

by Peter Guthmann Published on:

This is the main message of the position papaer of the "EUROCITIES SOCIAL AFFAIRS FORUM WORKING GROUP ON HOUSING".However, a positive trend in favour of private ownership is evident, as written in the paper: "Foreign and national investors increasingly invest in properties because of comparatively moderate property prices. However, the main demand will be for affordable rented flats on a continued upward trend.In all of the Länder discussions about selling municipal dwellings has been one of the major topics. In July 2007, the Senate of Berlin voted for a preservation of those flats owned by the six municipal housing companies.Berlin’s market for rented flats was subject to a structural change between 2002 and 2007. As a consequence of an almost 30 % decline in the housing stock of municipal housing companies, this type of flat sustained a fall from 23 to 16 percent because of poor demand in the market. In 2008, the share of not only municipal housing companies but also of cooperative building societies remained stable.