The law of rent restrictions

On April 15, the hearing before the Federal Constitutional Court in Karlsruhe took place. It resulted in a decision that the rent brake imposed by the Berlin government in February 2020 is illegal. At issue is the law passed by the city parliament in early 2020 to limit rising rents in Berlin. The ruling states that the rent cap must remain at 9.80 euros per month per square meter for five years and that rents may not exceed that by more than 20 percent. The law restricted the apartment owners in their right to set the rent so that it is high according to the apartment's amenities. The court ruling of April 15, 2021 is good news for property owners and investors, because it means that the real estate market in Berlin is attractive again. Investors will again be able to generate income from their properties and benefit from the increase in value.