Law & Politics

Berlin housing market under pressure

Berlin Short-Term Rental Ban 2015: 220 Apartments Converted Back

Berlin's short-term rental ban is showing early results: 220 vacation apartments in Mitte have been converted back to regular rentals. But legal uncertainty remains.

Peter Guthmann

Peter Guthmann

Berlin's ban on short-term rentals (Zweckentfremdungsverbot), in effect since May 2014, began producing tangible results. Data from the borough of Mitte provided an early scorecard.

220 vacation apartments returned to the rental market

According to the borough office, 220 former tourist apartments in Mitte were converted back into regular rental housing after the ban took effect. For tenants searching for a home, this was a modest relief in one of Berlin's most competitive boroughs. For property owners, the picture looked quite different.

Wave of lawsuits at the administrative court

Whether the official count of 220 converted apartments includes cases still under legal dispute remains unclear. Many owners view the ban as an infringement on their property rights and have filed suits at Berlin's administrative court. The borough offices declined to provide exact numbers. A landmark ruling was still pending, and the ban was expected to keep the courts busy for some time.

Impact on owners and investors

The option of earning higher returns through short-term tourist rentals was off the table for the time being. Instead, properties had to be returned to the regular rental market, which changed the calculation for many investment properties. This shift in supply was influencing the broader market development in Berlin. Whether the return of vacation apartments would noticeably reduce rental price pressure remained an open question in 2015.

Controversy over citizen tip-offs

The boroughs' practice of asking residents to report suspected illegal vacation apartments drew criticism. In Mitte alone, around 350 such tips were awaiting processing. Critics spoke of a climate of distrust among neighbors. The long-term effect on the supply of apartments in Berlin and the question of whether the ban would survive a higher court challenge remained the key open issues for Berlin's property market.

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