Market Analysis
Berlin rental market
Tenant-pays principle: Berlin rental listings drop sharply in June 2015
After the introduction of the tenant-pays principle, the number of publicly listed rental apartments in Berlin fell 14 percent in June 2015. Small apartments and popular inner-city boroughs were hit hardest.
Peter Guthmann
In June 2015, around 2,000 fewer rental apartments were publicly listed in Berlin than in the previous month, a decline of 14 percent. The figures come from a survey by Hamburg-based data analytics firm IMMO INFO, commissioned by the IVD Berlin-Brandenburg.
The IVD sees a clear connection to the so-called "Bestellerprinzip" (tenant-pays principle), which took effect on 1 June. The new rule stipulates that whoever commissions the agent pays the fee. For rentals, that is usually the landlord. Dirk Wohltorf, chairman of the IVD Berlin-Brandenburg, commented: "In plain terms, this means the apartment search in Berlin is getting harder and the market less transparent." Many landlords would now forgo agents and public listings, preferring to let "under the table" instead.
Small apartments hit hardest
The steepest decline affected one- and two-room apartments. Listings in this segment fell from 7,212 to 6,087, a drop of 16 percent. This category matters particularly for Berlin because it is in high demand among students, singles and young professionals.
Popular boroughs lose disproportionately
Geographically, the already tight inner-city boroughs took the biggest hit. Across all apartment sizes, Friedrichshain-Kreuzberg saw a decline of 22.5 percent, Pankow 21.5 percent and Charlottenburg-Wilmersdorf 17.5 percent. In these areas, where competition among tenants was already fierce, the situation is likely to intensify further.
Consequences for owners and tenants
For apartment owners, renting out privately without an agent can save costs. At the same time, the lack of public comparable listings makes it harder to set market-appropriate rents. Anyone trying to assess the current market development has fewer data points to work with.
Whether the drop remains a short-term reaction to the legislative change or turns into a permanent shadow market will become clear over the coming months.